Docklands Solicitor

Latest legal news from Docklands Solicitors, Kaslers Solicitors LLP.

Monday 16 May 2011

Freezing Injunctions

A freezing injunction is a court order that prevents the defendant from disposing of his or her property before the trial or sometimes even after a claimant obtains a judgment against a defendant. The effect of such an order on a defendant is very harsh. The court will grant a freezing injunction if there is clear evidence that the defendant will disperse his or her assets to prevent the claimant enforcing any later judgment.

A freezing injunction is usually obtained urgently and secretly and it is normal to apply to the court without notifying the other party. A freezing injunction also affects and binds third parties who have possession and control of the defendant’s property, such as banks, mortgage companies and potential buyers. The claimant can give notice to potential buyers and mortgage companies that the land is subject to a freezing injunction by applying to register a restriction on the property under s 42(1) of the Land Registration Act 2002.

Labels: application without notice, freezing injunctions, restriction on land