Injunctions
If you need to preserve or prevent the loss of an asset, protect against personal harm, prevent loss or damage to or otherwise safeguard business or personal interests, it may be necessary to apply for an injunction.
An injunction is a court order that either stops someone from doing something or requires them to take a specific action. Injunctions are used in urgent situations, for example, to stop the sale of assets, prevent the misuse of confidential information, prevent someone from breaching a contract or to freeze a bank account.
Injunctions are serious and often time sensitive. If granted, they can take immediate effect. If you need an injunction or receive notification that someone has applied for injunctive relief against you, it is important to act quickly.
Interim Injunctions
Interim injunctions are urgent court orders used to compel or prevent specific actions, often to protect businesses from harm before full litigation can occur. They help preserve assets or evidence while a dispute is resolved.
Applications can be made before or during proceedings, either with or without notice. Without notice (ex parte) injunctions are allowed only when giving notice would undermine the purpose, such as in cases of asset dissipation or evidence destruction. These require full and frank disclosure and proceed in two stages: an initial hearing without the respondent, followed by a second hearing where they can respond. With notice applications are more straightforward and require informing the other party at least three days before the hearing.
Applicants must also provide a cross-undertaking in damages, agreeing to compensate the other party if the injunction is wrongly granted. Legal advice is essential to navigate the strict requirements and maximise the chances of success.
Freezing Orders
A freezing order is a court order that prevents a party from disposing of assets during a legal dispute, typically where there’s a risk of asset dissipation to avoid judgment enforcement. These orders can apply to UK-based assets like bank accounts and property, or globally to foreign holdings and offshore trusts.
To obtain one, the applicant must show a strong case, that there is a substantive cause of action, there is risk of asset dissipation if the order is not put into place, and it is ‘just and convenient’ to grant the order.
The order includes a penal notice, explicitly warning the respondent that breaching its terms may result in contempt of court. Applying for a freezing order is complex and requires expert legal advice.
Our team can help assess your case, prepare a robust application, manage risks such as cross-undertakings in damages, and guide you through enforcement challenges to protect your interests effectively.
Norwich Pharmacal Orders
A Norwich Pharmacal Order (NPO) is a legal remedy used to obtain crucial information from a third party involved in wrongdoing, especially when other means of discovery are unavailable. You don’t need to intend immediate legal action, but the request must serve a legitimate and focused purpose. Courts only permit targeted disclosure, not broad investigations.
To secure an NPO, you must show an arguable wrong, that the third party is involved, and that they hold information needed to identify the wrongdoer. The court will only grant the order if it’s necessary and fair. Applicants must provide full and honest disclosure of all relevant facts, offer a cross-undertaking in damages, and cover reasonable third-party costs. Legal advice is essential to ensure compliance and avoid the order being set aside.
Our expert team can guide you through the process, helping you prepare a strong, strategic application that meets all legal requirements.
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Frequently Asked Questions
Find answers to your most pressing questions about our services and processes.
What criteria must be met for the court to grant an injunction?
The court will assess three main factors:
- Whether there is a serious issue to be tried.
- If yes, whether damages are an adequate remedy.
- If not, where does the ‘balance of convenience’ lie in protecting one side’s rights against the other.
What does the ‘balance of convenience’ test mean?
The ‘balance of convenience’ test refers to the court’s evaluation of the potential impact on each party depending on whether the injunction is granted or not. This involves comparing the harm one party may suffer without an injunction (such as loss of confidential information or damage to the goodwill of the business) against the prejudice the other party might face if the injunction is imposed (such as loss of livelihood).
How can I apply for an injunction without tipping off the other side?
Injunctions can be made without notice. When injunctions are made in this way, you must provide the court with full and frank disclosure and cogent reasons why notice should not been given, such as extreme urgency or the need to preserve evidence.
How much do injunctions cost?
Going to court can be costly. In addition to solicitor fees, you will also need to factor in barrister fees for representation at the hearing and other costs such as process server fees. Given the urgent nature of injunction applications, a significant amount of work often needs to be completed in a short, concentrated timeframe, which can increase overall costs. Please contact our team, and we will be happy to provide a more detailed cost estimate based on the specific facts in play.
What happens if someone breaches the order?
Breach is a contempt of court. Penalties include fines, asset seizure and even committal to prison in serious cases.
How can I apply for an interim injunction without tipping off the other side?
Interim injunctions can be made with or without notice. However, the court will only allow a without notice or “ex parte” application where there are good reasons for not giving notice Typically this applies where giving notice would undermine the purpose of the injunction for example in cases involving imminent risk of dissipation of assets, destruction of evidence or breaching confidentiality clauses.
When making a without notice application, the applicant has a duty to provide full and frank disclosure to the court meaning that they must disclose all relevant facts, not just those that support the case but also those that are adverse.
Without notice applications proceed in two stages:
- The first hearing is held without the respondent’s knowledge or attendance.
- A second hearing is then scheduled giving the respondent the opportunity to respond and challenge the interim injunction.
Do you need an interim injunction?
Interim injunctions are a vital tool for preserving the status quo until a dispute is resolved.
However, obtaining an injunction involves meeting strict legal and factual requirements. The court expects a high level of evidence and clear justification, and it will not grant such orders unless fully convinced of the application’s merits.
It is therefore essential to seek advice from experienced lawyers who can guide you through the process and ensure your case is properly presented.
What assets are covered by freezing orders?
A freezing order can apply to domestic assets such as bank accounts, property and vehicles or worldwide assets such as overseas accounts, foreign property and offshore trusts.
What criteria must be met for the court to grant a freezing order?
The court must establish the following conditions:
- The applicant has a strong case.
- There is a substantive cause of action against the respondent.
- There is risk of asset dissipation if the order is not put into place.
- It is ‘just and convenient’ to grant the order in the circumstances.
What are the consequences of a freezing order?
The freezing order is endorsed with a penal notice, explicitly warning the respondent that breaching its terms may result in contempt of court. Penalties include fines, asset seizure and even committal to prison in serious cases.
When is an NPO Appropriate?
The NPO is a focused and effective remedy, suitable when essential information cannot be obtained by other means. While you do not need a firm intention to start legal action, your request must have a clear and legitimate purpose. Courts only allow targeted disclosure, not broad or unnecessary fishing expeditions.