One way of protecting the money you’re seeking from a Defendant is to freeze his assets and make sure that he cannot dissipate the very thing you’re coming for from him: money.
There is, after all, little point commencing proceedings, ‘winning’ at trial and being awarded a money judgment, only to be faced with the problem that the Defendant has no money or assets to pay what you have been awarded by the court. The Defendant may also declare bankruptcy or enter into liquidation. Your ‘win’ at trial now does not seem that much of a ‘win’ after all.
A freezing injunction can be obtained against any Respondent who is at risk of dissipating assets in an effort to frustrate any claim being brought against him. A freezing order can freeze bank accounts and prohibit the sale of assets whilst permitting the Respondent to spend reasonable sums, usually subject to the approval of the court, on legal fees and living expenses. They are, however, required to file and serve an affidavit detailing their assets and liabilities in full. If they fail to do so adequately, or indeed at all, then they face potential imprisonment and/or a fine for contempt of court.
Freezing orders remain one of the most powerful weapons in any litigant’s armoury and can often bring litigation to a swift close. It is a method of protection and enforcement that the court will grant if the Claimant can show a real risk that what is rightly theirs, could be concealed or spent.
If you would like advice on any legal matter, Griffin Law provides prompt, commercially astute and cost-effective advice to their clients, please contact justice@griffin.law
