How injunctions can help you

In fast moving commercial disputes, particularly where fraud or urgent financial risk is suspected, swift action can make the difference between a meaningful recovery and the disappearance of assets altogether. Three powerful interim remedies are central to protecting a business’s position: freezing injunctions, proprietary injunctions, and Norwich Pharmacal orders. Used strategically, they can stabilise a volatile situation long before a case reaches trial.

This update outlines what these orders achieve, when they are available, and the practical considerations for businesses facing urgent threats.

Freezing injunctions: Holding the line

A freezing injunction restrains a defendant from disposing of or diminishing the value of their assets until a claim can be determined. It is a well established tool designed to prevent defendants from placing assets out of reach and to preserve the status quo.

To obtain one, a claimant must demonstrate:

• A serious issue to be tried.
• Evidence that the defendant holds assets capable of being frozen.
• A real risk of dissipation.
• That the order is just and convenient in the circumstances.

Because applications are frequently made without notice, the applicant (the person or entity applying for the injunction) owes a strict duty of full and frank disclosure to the court, requiring transparency about all relevant facts – favourable and unfavourable alike. A failure to comply can result in the order being discharged and the applicant becoming liable for losses.

What protection does it give?

A freezing injunction:

• Tells the defendant they cannot dispose of or diminish the value of their assets up to value of the claim until it has been discharged.
• Can apply to assets within England & Wales or worldwide.
• Binds third parties (such as banks) once they have notice – meaning the banks will usually freeze the defendant’s bank accounts.
• Provides immediate reassurance that assets will not be dissipated while proceedings progress.

What it does not do

It is not intended to be punitive or oppressive. Defendants are typically permitted to use their assets to meet:

• Ordinary living expenses.
• Ordinary business expenditure.
• Legal costs for defending the claim.

The order is usually capped at the value of the claim plus interest and estimated costs; any remaining assets may still be used. It also does not elevate the claimant above secured creditors.

Proprietary injunctions: Protecting what’s yours

When the assets in question represent the claimant’s own property, such as money or assets traceably acquired using misappropriated funds, a proprietary injunction may be appropriate.

These orders are particularly attractive because they:

• Do not require evidence of a risk of dissipation.
• Permit no exceptions for living or business expenses in respect of the identified property.
• Can sometimes offer a degree of priority over other creditors.
• Require enhanced disclosure from the defendant explaining what has happened to the property.

Proprietary and freezing injunctions are frequently sought together to provide comprehensive protection over both specific and general assets.

Worldwide freezing orders: Managing cross border exposure

In increasingly international disputes, many defendants have assets in multiple jurisdictions. A worldwide freezing order may be available where domestic assets are insufficient to meet the alleged claim and there is evidence of overseas holdings. 

Enforcing these orders abroad often requires cooperation from foreign courts, and in some jurisdictions it may be more effective to begin targeted local proceedings to secure equivalent relief. Early cross border coordination is essential to avoid delay or duplication. 

How the process works in practice

Urgent interim relief is intensive and requires rapid mobilisation. Typical steps include:

• Immediate investigation into the factual position and asset profile – often using external investigators.
• Preparing detailed affidavits, supporting exhibits, draft claim documents and orders.
• Filing and securing a private hearing, often on an urgent basis.
• Serving banks and other third parties before the defendant to ensure assets are frozen promptly.
• Engaging in fast paced correspondence ahead of the return date hearing, where the court decides whether the order should continue.

Although these applications require front loaded time and cost, they frequently create significant early leverage. Many disputes settle soon after an order is granted, once the defendant appreciates the constraints imposed.

Norwich Pharmacal orders: Unlocking key information

A Norwich Pharmacal order compels an innocent third party (commonly a bank or platform provider) to disclose information needed to identify a wrongdoer or trace assets. They are particularly effective in fraud scenarios such as authorised push payment (APP) fraud.

They can provide:

• Bank statements
• Account holder information
• Transaction records

Because financial institutions owe duties of confidentiality, they usually require a court order before disclosing. The information obtained can often be used to support further steps, including obtaining a freezing injunction against the ultimate wrongdoer. Care is needed to use the information only for the purposes authorised by the order.

Points to watch

• Confidentiality is critical: You want to avoid tipping off the respondent, who once they get wind of your plans, may do everything they can to get rid of their assets before there is a court order against them. Administrative errors (for example, incorrect court listings) can risk sensitive matters becoming visible to third parties, including journalists, which increases the risk of tipping off.
• Court transfers can cause visibility issues, with sealed claims sometimes surfacing unintentionally.
• Notifying third parties can be strategically valuable but may expose the applicant to paying the third parties’ costs of complying, and may increase the damage the defendant experiences, which the court may order the applicant has to pay for.

Practical takeaways 

• Act quickly. Delay can undermine both the merits and the availability of relief.
• Gather information discreetly and maintain confidentiality to avoid tipping off potential wrongdoers.
• Consider both general (freezing) and property specific (proprietary) protections where appropriate.
• Where assets are overseas, obtain early advice on cross border enforcement.
• Use Norwich Pharmacal orders to unlock information essential to tracing and recovery.

How we can help

We routinely advise businesses on urgent interim remedies in complex disputes, including fraud, cross border asset recovery and emergency commercial litigation. If you are facing an imminent threat to your assets, or require guidance on deploying these remedies strategically, our team can support you from urgent investigation through to enforcement.

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