freezing injunction

An order made by a court in respect of a defendant's assets, which may be made in respect of assets both in and outside England and Wales. Freezing injunctions are usually applied for without notice prior to commencement of court based legal proceedings. These court orders prevent a defendant (1)  removing assets out of the jurisdiction of the court, or (2) dealing with assets within the jurisdiction or out of the jurisdiction. 

These court orders are obtained by claimants in litigation with the intention of preventing subsequent actions by defendants that would frustrate court orders in favour of the claimant, or render a final judgment less effective than what it might otherwise be.  Such orders are available because an English Court has no jurisdiction or power to restrain a person from dealing with their own property (that is, transporting it or disposing of it by sale) prior to judgment.

Courts are cautious that its orders do not go further than what is necessary in the circumstances and will not allow freezing injunctions to prevent or hinder ordinary trading activity of the business in question or otherwise operate as an instrument of oppression. In the event that such a court order is found to have been wrongly made, the court may call on the usual undertaking given by the claimant to the court prior to the making of the order to pay damages to the defendant for its loss arising from the making of the order.

Usage: A court ordered the freezing injunction to prevent the Defendant's assets being removed to a foreign jurisdiction.

Related Words: litigation; injunction; search order.