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Legal > Complex Disputes & Litigation

Freezing Orders:

Overview FAQs Articles Locations

The purpose of freezing orders is to restrain the dealing of an asset where there may be a claim to answer by the assets controlling party.  The Freezing order generally exists as an interim order which may generally be obtained ex parte without notice to the respondent and before service of the originating process, where it is a concern that such notice may prompt the dissipation of assets sought to be protected.

At Navado, we understand that there may be grounds surrounding the freezing order which may need additional consideration aside from an exclusive consideration of your claim for order. For example it may be the case that our Solicitors would consider the role of bankruptcy and insolvency in association with the freezing of business assets and may advise of the best cause of action in relation to the Corporations Act. Additionally it may be the case that our Solicitors may advise in relation to Intellectual property including the roles of trademarks and copyrights, or other matters which would further support grounds for the finding of a freezing order. Finally our Solicitors may also take into consideration the role of any trusts or the dissipation of funds to entities beyond those which are immediately disclosed and available in relation to the Freezing Order.

Before a freezing order is made an applicant for orders will need to:

  • Establish that judgment has been given in its favour or that it has a good arguable case on an accrued or prospective cause of action;
  • Establish that there is a danger of judgment or a prospective judgment being wholly or partly unsatisfied because the judgment debtor, prospective judgment debtor or another person might abscond, or the assets might be disposed of, transferred, dissipated and subject to a reduction in value;
  • If an order is sought against a third party; prove that there is a danger that its judgment or prospective judgment will be wholly or partly unsatisfied because:

(a) The third party holds or is using, or is exercising a power of disposition over assets of the judgment debtor or prospective judgment debtor; or

(b) The third party is in possession of, or in a position of control or influence concerning assets of the judgment debtor or prospective judgment debtor; or

(c) There is or may ultimately be available to the applicant as a result of a judgment or prospective judgment, a process whereby the third party may be obliged to disgorge assets or contribute towards satisfying the judgment or prospective judgment.

If you are concerned about the potential dissipation or transfer of assets preventing your recovery of a prospective or actual judgment debt, we recommend that you contact our office and arrange an appointment to see one of our Complex Disputes & Litigation Solicitors in our Sydney office. By appointment, we can also arrange a time for you to see one of our lawyers in one of our branch offices. For a complete listing please see our "Locations" tab.

 

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This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.

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