Freezing orders in employee competition claims
Freezing orders in employee competition claims

The following Employment practice note provides comprehensive and up to date legal information covering:

  • Freezing orders in employee competition claims
  • When to apply
  • Principles relevant to obtaining a freezing order
  • Form of order
  • Further resources

Freezing orders in employee competition claims

Freezing orders were formerly known as Mareva injunctions, named after the claimant in one of the first cases in which such an injunction was granted.

A freezing order is an injunction that prevents a defendant from removing any assets from the jurisdiction and/or from dealing with any assets whether within the jurisdiction or (in suitable cases) elsewhere.

The purpose in granting such a freezing injunction is to ensure that the defendant's assets are preserved so that in the event the claimant obtains judgment against the defendant, the defendant's assets are available to enable the claimant to recover damages and costs. A freezing order may therefore be appropriate in a case where there is credible evidence that a defendant is likely to dissipate his assets to defeat a damages claim against him.

In an employee competition scenario, it is unlikely that such an order would be sought unless there is an allegation of fraud against one or more of the defendants—the

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