The use of a Mareva injunction to freeze someone’s assets is a dangerous and effective weapon when used against debtors. The award-winning commercial litigation lawyers at ParrisWhittaker regularly secure freezing injunctions on clients’ behalf to protect their interests.
What is a Mareva injunction?
A Mareva injunction is a temporary injunction awarded by the court to freeze someone’s assets, preventing them from disposing of them to avoid paying a debt. You can ask the courts in the Bahamas to grant an injunction under s2(1) Supreme Court Act 1996 where it appears to the court to be just and convenient to do so.
You cannot assume your application will be granted because it is at the court’s discretion whether or not to order an injunction on the evidence. At the very least, the applicant (creditor) must have a credible claim against the purported debtor; that they own assets within this jurisdiction and there is a significant risk of them disposing of the assets before the creditor can obtain judgment and have it enforced.
So if you apply for a Mareva injunction, the fundamental purpose of the court granting your application is to protect your legitimate financial claim by preventing the asset removal by the debtor.
When should you consider a Mareva injunction?
Mareva injunctions are a particularly important tool in the event of fraud or suspected fraud, or in circumstances where you are owed a debt – and you suspect the debtor will attempt to dissipate or transfer their assets to avoid settling their debt, or to avoid paying up when you obtain judgment against them.
In short, freezing injunctions should be considered very early on in the case of a financial claim for the simple reason that one of the first moves a debtor might make is to try move their assets out of reach. For example, transferring money to other jurisdictions or selling assets and transferring the proceeds, or transferred ownership into someone else’s name.
You should note that you must have adequate grounds both for believing the defendant has assets in the Bahamas; and there is a risk of removal of those assets to frustrate your claim.
Even if they have no assets in the Bahamas but have assets elsewhere, it may be possible secure a worldwide Mareva injunction preventing the transfer or disposal of worldwide assets to avoid the debt.
If you suspect someone will try to disperse their assets to avoid paying you, it is imperative to take urgent advice from specialist lawyers so that the debtor can legally be restrained from moving assets beyond reach.
The best lawyers to deal with the urgent need for freezing injunctions in the case of financial disputes are those who are prepared to take prompt, aggressive action against the other side. The commercial dispute resolution lawyers at ParrisWhittaker are experienced and equipped to take robust action at short notice to protect your interests.
What should we do now?
Contact us straightaway. You will need to give us a full picture of your claim because you will have to satisfy the court of a number of things, particularly that you have made full and frank disclosure of all relevant matters within your knowledge.
If you have any evidence that the debtor has already transferred or otherwise attempted to disperse assets, it is vital to give us the necessary information. We can then make the application on your behalf.
What if you are the subject of a financial claim and your assets are at risk of being made the subject of a freezing injunction? We can help you. Contact us as a matter of urgency so that we can give you timely and robust advice to protect you.
Contact the experienced commercial dispute resolution lawyers at ParrisWhittaker for expert advice and prompt action. Get in touch at info@parriswhittaker.com
