Freezing Orders

Freezing order is an interim injuncition which is used to secure a payment for a compensation awarded by a court. It is through freezing of all the assets of the respondent so that he is no longer able to use it or to dispose of it.  If you have been awarded some kind of a compensation and you are worried that the wrongdoer will not pay it, an injunction can be put in place according to section 37 of the Senior Courts Act 1981.

These injuctions can be implemented for assets in England and Wales and it is called domestic freezing order. But, courts are also allowed to place worldwide freezing orders for assets which can be found in any other country.

But, it remains in courts' discretion to decide whether implementation of this order is just and convenient as it is required under section 37(1), SCA 1981.

There are certain other conditions for the freezing order to be given such as an existence of a cause of action which means a legal or equitable right. Besides, an existence of a good arguable case is on behalf of the applicant is necessary. But, the most important elements are: existence of assets which belong to the respondent and existence of a risk that these assets are being dissipated.

So, it may be necessary to take such a step as a freezing order to secure one's assets. Otherwise, the winning party may not get the compensation it has been awarded.



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