The High Court has recently examined the criteria for granting a
worldwide freezing injunction in support of foreign arbitration
proceedings.
The applicant, a Venezuelan state-owned company, sought the
setting aside of a worldwide freezing order obtained against it in
support of arbitration proceedings in New York. The order froze the
applicant's worldwide assets up to a total sum of US$12
billion, reportedly the largest sum ever frozen by the English
courts. The court had used its powers under s.44 Arbitration Act
1998 to grant the injunction.
On appeal of the order, the Court noted that worldwide freezing
injunctions would only ever be granted in very rare cases. It is a
requirement of English law that applicants must persuade the court
that it would be "just and convenient" to grant a
freezing order. In this case, it would not be just and convenient
to maintain the injunction if the applicant did not have a
sufficient connection with this jurisdiction. The
