Obtaining and Enforcing Worldwide Freezing Orders
Worldwide freezing orders are a powerful tool in litigation. They prevent a respondent from disposing of or dealing with assets up to a specified value, regardless of their location or ownership. When granted promptly and on proper grounds, a worldwide freezing order can secure assets and protect the value of a potential judgment. If obtained without meeting the strict legal requirements, it may be discharged and lead to significant adverse costs.
This article explains how worldwide freezing orders are obtained, the evidential and legal requirements, and the real-world challenges of enforcing them overseas, with practical ways to overcome those hurdles.
What is a Worldwide Freezing Order?
A freezing order is an interim injunction that preserves assets by preventing disposal or dissipation before judgment. A worldwide freezing order extends that protection beyond England and Wales to assets globally. The English court’s power is found in section 37 of the Senior Courts Act 1981 and CPR Part 25, supported by model orders that set the standard terms the High Court expects to see. From 6 April 2025, Practice Direction 25A was revoked, and revised model orders were introduced, including a Model Order for a Freezing Injunction and a Model Order for Propriety and Freezing Injunctions. These sit alongside a restructured CPR Part 25.
When Will the Court Grant One?
The court grants a freezing order only where it is just and convenient to do so. The standard test requires the applicant to show a good arguable case on the underlying claim, assets within scope, a real risk of dissipation, and that the order is just and convenient. These principles are reflected in CPR Part 25 and have been developed through case law. The court will also consider whether the order would operate oppressively, whether narrower relief would suffice, and whether there are clean hands and full and frank disclosure on a without notice application.
Domestic and Worldwide Reach
Domestic orders restrain assets within England and Wales. Worldwide orders extend to a respondent’s assets held in any jurisdiction. Although an English court can make a worldwide order against a respondent over whom it has personal jurisdiction, it cannot itself compel foreign courts or third parties to recognise it. That is why the standard terms include an important proviso: before taking steps to enforce abroad, the applicant will usually seek the permission of the English court, then pursue recognition or a mirror order locally.
Core Legal Requirements
To obtain a freezing order, you generally need to satisfy the court that:
- You have a good, arguable case on the merits.
- The respondent has assets that can be frozen.
- There is a real risk of dissipation if relief is not granted.
- It is just and convenient to grant the order.
In practice, the evidence must demonstrate specific facts that support the risk of dissipation, rather than mere suspicion. Indicators include complex offshore structures, asset flight, broken promises to pay, or a track record of non-compliance. The court will balance the need to protect the claim with the risk of unfair prejudice to the respondent.
Applying Without Notice and the Duty of Full and Frank Disclosure
Most freezing orders are obtained without notice due to the risk that assets might be moved if the respondent were alerted. The price for this is the applicant’s strict duty of full and frank disclosure. All material points must be fairly presented, including weaknesses and defences, and adverse documents must be exhibited. Any breach can justify discharging the order and awarding indemnity costs. A prompt return date allows the respondent to challenge the order, and the court may adjust the terms at that hearing. CPR 25 also confirms that interim relief can be sought pre-action where urgent or desirable in the interests of justice.
The Cross-Undertaking in Damages and Fortification
Every applicant must give a cross-undertaking in damages. If the order later proves unjustified and the respondent or an affected third party suffers a loss, the applicant may be required to compensate them. The court can require fortification of that undertaking by payment into court, bank guarantee, or other security, especially with high-value or wide-ranging orders. The updated model orders reflect the cross-undertaking structure and the court’s expectation that applicants can meet it in practice.
Scope, Carve-Outs and Ancillary Disclosure
Freezing orders usually include carve-outs for reasonable living expenses, legal costs, and ordinary business transactions. They also routinely require early disclosure of the respondent’s worldwide assets above a threshold, often by sworn affidavit. Ancillary disclosure facilitates the enforcement of the order and supports asset tracing. The courts have confirmed the breadth of ancillary disclosure available in support of freezing relief, and how it interacts with trusts and complex structures.
Third-Party and Information Orders that Support Freezing Relief
Freezing orders often work in conjunction with information orders against banks and intermediaries. Norwich Pharmacal orders and Bankers Trust orders can compel disclosure that identifies wrongdoers, reveals receivership details, or traces the path of misappropriated funds. Since 2022, a new service-out gateway has been introduced for third-party information orders, assisting victims of fraud in obtaining disclosure from overseas entities where appropriate. These tools can be critical when the target assets are obscured behind digital payments or multi-jurisdictional structures.
Chabra Orders and Non-Cause-of-Action Respondents
The court can, in exceptional cases, freeze assets held by a third party who is not a substantive defendant where there is good reason to believe those assets are really the defendants. This is the Chabra jurisdiction, used to prevent obvious circumvention by using nominees or affiliates. The courts apply this power cautiously. Recent decisions highlight the limits, particularly when seeking permission to serve a Chabra order outside the jurisdiction. The evidence must be strong, and the nexus with the main claim must be clear.
Support for Foreign Proceedings: Section 25 CJJA
English courts can grant freezing orders in support of substantive proceedings abroad under section 25 of the Civil Jurisdiction and Judgments Act 1982. The court considers expediency, the connection to England, and how the relief will assist the foreign court. Recent appellate authority confirms that a sufficient connection with England and Wales remains required. Applicants should address that connection with precision and explain how the English order will aid enforcement in the foreign forum.
The Privy Council’s Broad Idea Guidance and Its Limits
The Privy Council decision in Convoy Collateral v Broad Idea provided influential guidance on the legal basis for freezing relief, emphasising its role in supporting the enforcement of judgments, including in aid of foreign proceedings. Although persuasive rather than binding in England and Wales, it remains widely cited and has shaped how courts and practitioners approach freezing orders connected to overseas litigation. Any application relying on its principles must still be consistent with the English statutory framework and the applicable service rules.
Practical Steps to Prepare a Strong Application
A strong application for a worldwide freezing order is supported by up-to-date documents such as corporate and banking records. The witness statement should set out the merits, identify the assets, and give clear evidence of dissipation risk, with full disclosure of all relevant facts. Standard terms include carve-outs for living or business expenses and a cross-undertaking in damages, which may need fortification. The draft order should follow the current model order, with any changes clearly explained.
Common Pitfalls and How to Avoid Them
Common issues include terms that are too broad, insufficient disclosure of adverse facts, and evidential assertions without proper support. Problems with defined terms can cause uncertainty and disputes over the scope of the order. Recent cases have highlighted that section 25 orders differ from domestic forms, and that a proprietary injunction may be more appropriate where the claim concerns ownership of specific property rather than securing a money judgment.
Enforcing a Worldwide Order Overseas: Recognition and Mirror Orders
A worldwide order is not automatically enforceable outside of its country of origin. The applicant will usually need recognition or a mirror order from the foreign court. The English order’s proviso on enforcement abroad ensures the English court’s supervision and comity with foreign courts. The approach varies by jurisdiction. EU states may have distinct approaches under their local private international law. Offshore centres may be familiar with English-style relief and more receptive. In each case, local law advice is essential and should be built into the initial strategy and evidence.
Service Out, Banks and Third Parties
Enforcement often requires notifying banks or custodians holding relevant assets. Where necessary, the court’s permission is needed to serve the order and supporting documents abroad. Ancillary information orders can assist in tracing assets, but the court will ensure they are proportionate, particularly where the target is a third party unconnected to the claim.
Respondent Non-Compliance and Contempt Risks
Failure to comply with a freezing order can result in contempt proceedings, carrying penalties such as imprisonment, fines, or adverse findings at trial. The court may also draw inferences against a respondent who does not provide the required asset disclosure. Case law demonstrates that breaches are treated seriously, particularly where there is deliberate or repeated disobedience. In some instances, the court has imposed custodial sentences on company officers and individuals responsible for the breach, emphasising that freezing orders must be observed in full until varied or discharged by the court.
Overcoming Cross-Border Enforcement Challenges
Obstacles to enforcing a worldwide freezing order abroad include restrictive evidence rules, banking secrecy, and procedural delays in foreign courts. Different jurisdictions may have varying thresholds for recognising foreign judgments or interim relief, and some may require extensive local proceedings before granting equivalent orders. These issues can be managed by seeking a mirror order promptly in the foreign jurisdiction, supported by evidence that meets local procedural requirements. Information orders can assist in tracing assets across borders, particularly where they are held through complex corporate structures. Coordinating the timing of English and foreign proceedings is important to avoid inconsistent outcomes and to ensure that the order remains effective in preserving assets pending resolution of the dispute.
Section 25 Strategy in Support of Foreign Proceedings
Under section 25 of the Civil Jurisdiction and Judgments Act 1982, the English court can grant a freezing order in aid of substantive proceedings taking place abroad, provided there is a sufficient connection to England. The court will consider whether granting the order is expedient and whether it will assist the foreign court in delivering effective relief. It will also assess whether the order is proportionate to the claim and whether its terms align with the procedures and timetable of the foreign proceedings. Recent appellate decisions emphasise the need for applicants to explain the English connection in detail and to show how the order will complement, rather than conflict with, measures taken in the primary jurisdiction.
Alternatives Where a Freezing Order is Not Suitable
Where the claim concerns ownership of specific property rather than securing a money judgment, a proprietary injunction may be more appropriate, as it preserves the claimant’s rights in the asset itself. In cases involving potential concealment or destruction of evidence, search orders can be used to secure relevant material, while receivership orders may be necessary to safeguard and manage assets pending judgment. Targeted third-party disclosure orders can also assist in obtaining information critical to tracing assets or establishing liability. The choice of remedy will depend on the nature of the claim, the type of asset involved, and the urgency of the situation.
Essential Steps for Respondents
Respondents who have been served with a worldwide freezing order should act immediately. Diarise the return date, obtain specialist advice, and comply with all disclosure obligations and carve-outs. Where the order disrupts legitimate business, an application to vary may be appropriate. Weaknesses in the applicant’s case, particularly regarding dissipation risk and disclosure, should be identified and raised promptly.
The Ongoing Importance of Worldwide Freezing Orders
Worldwide freezing orders are a powerful but carefully regulated form of interim relief. Their effectiveness depends on meeting strict legal requirements and, where assets are abroad, navigating complex cross-border enforcement. Careful preparation, proportionate drafting, and coordinated action in relevant jurisdictions can help ensure the order achieves its intended purpose.
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The above information is for general guidance on your rights and responsibilities and is not legal advice. If you need more details on your rights or legal advice about what action to take, please contact a legal advisor.
