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31 January 2014 / David Sandy
Issue: 7592 / Categories: Features , Commercial
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Going head to head

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Incompatible judgments on the same day have led to confusion over the scope of standard wording, says David Sandy
If a respondent subject to a freezing order in standard terms arranges for the disposal of assets of a company he owns and controls, is the respondent in breach of the freezing order?

 

In Group Seven Limited v Allied Investment Corporation Limited and Others [2013] EWHC 1509 (Ch) Hildyard J decided that such a respondent would not be in breach of the freezing order. In Lakatamia Shipping Company v Nobu Su and Others [2013] EWHC 1814 (Comm), Burton J decided that the respondent would be in breach of the freezing order. Both judgments were handed down on the same day, 6 June 2013.

Who is right? And if Hildyard J is right, what steps can be taken to ensure that a freezing order does extend to catch assets held by a company controlled and owned by the respondent?

It is perhaps surprising that this issue has not come up for decision before,

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