Re Swissair Schweirische Luftverkehr-Aktiengesellschft: Flightline Limited v Edwards & Another, Court of Appeal, 5 February 2003
Normally, a freezing order would not give the claimant any better rights over the defendant’s assets in its subsequent liquidation. However, the decision in Flightline demonstrated how a claimant can, in certain circumstances, improve his position.
Flightline commenced an action for damages against SwissAir in January 2002 obtaining a freezing order on 16 January 2002 which was discharged on payment by SwissAir of £4,260,747.06 into an escrow account in the names of the parties’ solicitors. SwissAir undertook that it would not withdraw or in any way dispose of or deal with any of its interest in the monies in the account up to a limit of £3.325 million pending an order of the court or written consent of both parties’ solicitors.
