DEFENDING A FREEZING ORDER
If a freezing order has been made against you, the immediate priority is to understand its scope, comply with its terms — and then challenge it.
A freezing order obtained without notice is not the end of the road. It is granted at an early stage, usually on the claimant's version of events alone, without the court hearing from you. There are established and powerful grounds on which such orders can be challenged, varied or discharged entirely — but those challenges must be pursued promptly and by lawyers who know this jurisdiction well.
Simon Burn Solicitors has Court of Appeal and Commercial Court experience in freezing order proceedings. We act for defendants and respondents facing orders of all sizes, including worldwide freezing orders in excess of £150 million.
What Happens When a Freezing Order is Made Against You
Freezing orders — formally known as asset freezing injunctions, and historically as Mareva injunctions — are typically obtained by applicants on a without-notice basis. This means the order is made before you have had any opportunity to be heard.
Once served, you will usually be required to:
- Comply immediately with the terms of the order, which may freeze specified bank accounts, property or assets up to a stated maximum sum
- Provide sworn disclosure of your assets (usually within a short time frame set by the order)
- Attend an on-notice return hearing, usually within a matter of days, at which the order is either continued or discharged
The return hearing is your first real opportunity to fight back. The period between service and the return hearing is critical. This is when the groundwork for a successful challenge is laid.
Grounds for Challenging a Freezing Order
Asset Disclosure:
Your Obligations and Your Rights
Most freezing orders require the respondent to provide sworn disclosure of their assets, typically within a short time frame. Compliance with this obligation is not optional — breach of a freezing order is a contempt of court, which can result in committal to prison.
However, the obligation to disclose has defined limits. Assets below the threshold set by the order may not need to be disclosed. The geographic and categorical scope of disclosure obligations depends on the precise terms of the order. We advise on the exact scope of your obligations, help you comply correctly, and ensure you do not inadvertently over-disclose or breach the order's terms.
The Ordinary Course of Business Carve-Out
Most freezing orders contain a provision permitting the defendant to deal with assets in the ordinary course of business. The scope of this carve-out is frequently disputed. We advise defendants on what the carve-out permits in their specific circumstances — and, where necessary, apply to the court to clarify or widen its terms.
OUR EXPERIENCE IN FREEZING ORDER DEFENCE
We acted for defendants in 4VVV Ltd and Others v Spence and Others — long-running Commercial Court litigation involving worldwide freezing orders exceeding £49.5 million.
The trial of ten lead cases was subsequently heard by Mr Justice Foxton over ten weeks in 2024. At the conclusion of the judgment, Mr Justice Foxton recorded:
I would like to conclude by thanking both legal teams and all counsel for their exemplary presentation of a complex case. All counsel made significant contributions to the oral as well as the written advocacy. Despite the considerable distress which Mr Kewley's and Mr Spence's deceptive business practices have caused to the investors, the case was conducted throughout in a co-operative and professional manner, something which is very much to the credit of all of the lawyers involved.
Mr Justice Foxton,
[2024] EWHC 2434 (Comm), paragraph 660
Instruct Us
If you have been served with a freezing order, call us today. The earlier we are instructed, the more effectively we can act.
