Mareva Injunction

Mareva injunctions are granted sparingly and only when certain conditions are met. They are generally sought in cases involving fraud, asset concealment, or cross-border disputes where there is a high risk of asset dissipation. Key scenarios include:

High Risk of Asset Dissipation - A Mareva injunction may be issued if there is clear evidence that the defendant is likely to dissipate or hide assets, making it difficult for the claimant to enforce a judgment later.

Fraud and Misrepresentation Cases - In cases involving fraud, where the defendant is accused of dishonest conduct, Mareva injunctions can be used to secure assets that would otherwise be at risk of disappearing before the case is resolved.

Cross-Border Disputes - Mareva injunctions are often used in international cases where a defendant has assets in multiple jurisdictions. Freezing assets locally prevents the defendant from moving them to unreachable jurisdictions.

Contractual Breaches with Asset Transfers - If a defendant is suspected of breaching a contract and transferring assets to evade financial liability, a Mareva injunction can prevent further transfers while the case is pending.

Mareva injunctions involve several complex legal considerations, especially given the severe restrictions they impose on the defendant’s rights. Key legal issues include:

Proof of Dissipation Risk - Courts require clear evidence that the defendant is likely to move, conceal, or dispose of assets. General concerns are not sufficient; plaintiffs must provide specific facts indicating a risk of asset dissipation.

Undertaking as to Damages - Plaintiffs seeking a Mareva injunction must provide an undertaking to compensate the defendant for any losses if it’s later found that the injunction was unnecessary. This undertaking protects the defendant’s rights if they are wrongfully restrained.

Jurisdiction and Asset Location - Mareva injunctions are generally limited to assets within the court’s jurisdiction. However, courts may issue worldwide Mareva injunctions in certain cases, but enforcing these orders internationally can be challenging.

Impact on Third Parties - Mareva injunctions often affect third parties, such as banks or business partners, who may be required to freeze accounts or withhold funds. Proper communication and compliance with third-party obligations are crucial.

Setting Aside or Modifying the Injunction - Defendants may seek to challenge or modify the terms of a Mareva injunction, arguing lack of evidence, improper disclosure, or undue hardship. Courts can lift or adjust injunctions if they find the terms to be overly restrictive.

At ME Law, we provide expert legal support for clients seeking or defending against Mareva injunctions. Our experienced legal team assists in navigating the complexities of asset preservation and protecting clients’ interests throughout the injunction process:

Application for Mareva Injunctions - We assist plaintiffs in preparing and filing applications for Mareva injunctions, gathering evidence of the dissipation risk and presenting a strong, credible case to secure the order.

Defense Against Injunctions - For defendants facing Mareva injunctions, we provide representation to challenge or modify the order, focusing on disproving dissipation risk and highlighting potential harm to the defendant’s rights.

Asset Tracing and Verification - Our team conducts asset tracing to help verify the defendant’s holdings and provide factual support for the injunction, increasing the likelihood of success in securing or defending against the order.

Worldwide Mareva Injunctions - In cases requiring asset preservation across borders, we assist in obtaining and enforcing worldwide Mareva injunctions, coordinating with international legal counsel as needed.

Third-Party Compliance and Enforcement - We advise clients on managing third-party obligations related to the injunction, such as freezing bank accounts, to ensure compliance and avoid complications.

A Mareva injunction can be a powerful tool to secure assets and ensure a successful judgment. At ME Law, we offer comprehensive solutions to help you pursue or defend against Mareva injunctions effectively. Contact us today to discuss your needs and protect your financial interests in high-stakes legal matters.