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What should overseas lawyers , seeking world-wide asset freezing orders in English courts
note? note that practitioners within the jurisdiction carry a heavy responsibility to the court
and should not be encouraged to make ill-prepared applications
What must the applicant investigate before making the application? · an applicant must,
before making the application, properly investigate the cause of action asserted and the facts
relied on, before identifying and addressing any likely defences
How must the application be presented? the application must be presented in a fair and
even-handed manner, drawing attention to evidence and arguments which it can reasonably be
anticipated that the absent party would wish to make.
What must a defendant seeking to set aside for material non-disclosure identify? the alleged
failures, rather than adopt a "scatter gun approach".
In a mortgage repossession case, after execution but before the mortgagors' application for
permission to appeal against the trial judge's refusal to postpone execution had been heard, a
single lord justice granted the mortgagors' without notice application for an order restoring
possession pending the appeal. Would they subsequently discharge that order · (with indemnity
costs) on grounds of their failure to give full and frank and disclosure of relevant circumstances
(in particular of fact that the respondents would dispute their allegation that the required pre-
execution statutory notices had not been served on tenants affected).? Yes
In a case where it was found that the court had been deliberately misled could the say that
where the claimant, by failing to make full and frank disclosure or other misconduct, is alleged
not to have come to equity with clean hands, so that the setting aside of the injunction is
sought, there needs to be "an immediate and necessary relation" between the misconduct and
the equity sued for (i.e. the injunction), which needs to be assessed by the judge? Yes
,Where there have been without prejudice communications, what may be necessary to refer to?
the fact of such communications, and even to the effect of them, if without such a
reference, the court may be misled.
When must an application notice (whether for an interim injunction or some other relief) be
served? as soon as practicable after it is filed and, except where another time limit is
specified, must be served at least three days before the court is to deal with the application.
· evidence must also be served accordingly.
What are the policies underlying the rules of when n application notice. must be served The
applicant must act promptly, but the respondent must be given sufficient notice, thus ensuring
(in accordance with the overriding objective) that the matter is dealt with both expeditiously
and fairly.
If the period of notice is shorter than three days, can the court direct that · in the circumstances
of the case, sufficient notice has been given and deal with the application? Yes
Where the respondent is given "short notice" of an application for an interim remedy will he be
properly prepared and able to put all the relevant legal and factual information before the
court.? No this cannot be expected
Does the fact the respondent is represented on an urgent application for an interim injunction,
appears at the hearing and makes submissions release or absolve the claimant from his duty to
make full and frank disclosure? No
o (Were the position otherwise respondents given short notice would have every incentive not
to appear at the hearing.)
o However, in those circumstances, there is no duty on the claimant to provide duplicate
information where at the hearing the respondent deals with all the factual and legal issues in
the way in which the applicant would have been obliged to have done in order to satisfy his
disclosure obligationsthe court may discharge the injunction.
, In an interim injunction case, if the duty of full and fair disclosure is not observed what can the
court do? the court may discharge the injunction.
Can the applicant excuse themselves to say that they were not aware of the importance of the
matters they omitted to state? No
Where the duty is not observed, can the court discharge the injunction even if after full inquiry
the view is taken that the order made was just and convenient and would probably have been
made even if there had been full disclosure? Yes
What is the 2-fold purpose of this rule that the court can discharge the injunction? o It
deprives the wrongdoer of an advantage improperly obtained.
o Further, it serves as a deterrent to ensure that persons who make applications without notice
realise that they have this duty and the consequences (which may include a liability in costs) if
they fail
Who is the obligation of full disclosure owed to? To the court itself, which exists in order to
secure the integrity of the court's process and to protect the interests of those potentially
affected by whatever order the court makes.
Is the court's ability to set its order aside and refuse to renew it a sanction? Yes it is the
sanction by which that obligation is enforced and others are deterred from breaking it.
In the event of any substantial breach, will the court set its order aside and not renew it · to
deprive the defaulting party of any advantage that the order may have given them? Yes they
will strongly incline towards doing so, because of the the importance of the duty
In deciding what should be the consequences of any breach of duty, what is it necessary for the
court to take into account? of all the relevant circumstances, including the gravity of the
breach, the excuse or explanation offered, and the severity and duration of the prejudice
occasioned to the defendant, including whether the consequences of the breach were