Freezing Orders and Mareva Injunctions Brisbane

A freezing order — also known as a Mareva injunction — is one of the most powerful interim remedies available in commercial litigation. It prevents a defendant from dealing with, disposing of, or removing assets to frustrate an anticipated or existing court judgment. Freezing orders can be obtained urgently, without notice to the other side, and can extend to assets held worldwide.

Boss Lawyers acts for both applicants seeking freezing orders and respondents seeking to challenge or vary them. Mark Harley, Principal Solicitor, has over 17 years’ experience in commercial litigation and acts in complex asset-tracing and enforcement matters.

What Is a Freezing Order?

A freezing order is an interlocutory court order that restrains a respondent from removing assets from Australia or from a state or territory, or from disposing of, dealing with, or diminishing the value of assets — whether in or outside Australia. The order is designed to preserve the enforceability of a future judgment.

Freezing orders derive from the Uniform Civil Procedure Rules 1999 (Qld) (UCPR), Rule 260A, and from the inherent jurisdiction of the Supreme Court. The name “Mareva injunction” derives from the English case of Mareva Compania Naviera SA v International Bulkcarriers SA [1975] 2 Lloyd’s Rep 509.

A freezing order typically specifies:

• The maximum value of assets frozen (usually the amount of the claim plus estimated costs and interest)
• Which assets are frozen (all assets, or specific identified assets)
• Carve-outs for ordinary living expenses and legal costs
• Disclosure requirements — the respondent may be ordered to provide an affidavit of assets
• The geographic scope — Queensland, Australia-wide, or worldwide

When Will a Court Grant a Freezing Order?

To obtain a freezing order, the applicant must satisfy the court of the following:

1. A good arguable case on the merits: The applicant must have a substantive cause of action (not merely a frivolous or speculative claim). “Good arguable case” is a higher threshold than the “serious question to be tried” test for ordinary interlocutory injunctions.
2. A real risk of dissipation of assets: There must be objective evidence that, unless restrained, the respondent will take steps to dissipate, hide, or remove assets so as to frustrate enforcement of any judgment. This is the critical element. Courts look for concrete facts — not mere suspicion — to support this risk. Examples include: unusual asset movements, evidence of fraud, a history of dishonest dealing, offshore connections, corporate structures designed to obscure ownership.
3. Balance of convenience: As with all interlocutory relief, the balance of convenience must favour the order.

Duty of Full and Frank Disclosure

Freezing orders are frequently obtained ex parte (without notice). On any ex parte application, the applicant owes the court a duty of full and frank disclosure — every material fact, including facts that are adverse to the applicant’s case, must be disclosed. Failure to comply can lead to discharge of the order and adverse costs orders.

Types of Freezing Orders

Domestic Freezing Orders

Cover assets in Queensland, or in Australia. The standard form in Queensland proceedings.

Worldwide Freezing Orders

Extend to assets held anywhere in the world. Available where there is reason to believe assets may be moved offshore. Courts can also issue letters rogatory or seek recognition of the order in foreign jurisdictions.

Third Party Freezing Orders

A freezing order can be directed at a third party who holds assets on behalf of, or for the benefit of, the respondent. This is important where assets have been transferred to related parties, trusts, or associated companies.

Defending Against a Freezing Order

If a freezing order has been made against you, you have the right to appear and contest it at the return date (typically within 3-7 days of the ex parte order). You may seek:

• Discharge: On grounds that the applicant failed to establish the required threshold, or failed in their duty of full and frank disclosure.
• Variation: To widen carve-outs for living expenses, legal costs, or ordinary business expenditure; to reduce the value of assets frozen; or to remove specific assets from the order.
• Cross-examination: Of the applicant’s deponents on their affidavit evidence.
• Fortification of the undertaking: Requiring the applicant to provide security (cash or bank guarantee) to back their undertaking as to damages, where their financial position is uncertain.

Boss Lawyers acts urgently for respondents served with freezing orders. Speed is essential — the return date is typically only days away.

Frequently Asked Questions

Can a freezing order cover my entire bank account?

A freezing order typically specifies a maximum value (the amount of the applicant’s claim plus interest and costs). You retain access to your assets up to the extent they exceed the frozen amount, and the order normally includes carve-outs for ordinary living expenses and legal fees. The precise scope depends on the specific order made.

What happens if I breach a freezing order?

Breach of a freezing order is contempt of court. Penalties include fines, sequestration of assets, and in serious cases, imprisonment. Third parties who assist in breaching a freezing order can also be held in contempt. Comply strictly with the order and seek legal advice immediately.

Can a company be subject to a freezing order?

Yes. Freezing orders regularly apply to corporate entities, and can also extend to individual officers or directors who may have personal liability or control over corporate assets.

How long does a freezing order last?

An ex parte freezing order is temporary — typically until the return date. If the order is continued after a contested hearing, it will remain in force until the final judgment or further order. In some cases, a freezing order can be converted into a charging order over specific property once judgment is obtained.

Do I need to disclose all my assets if a freezing order is made?

Many freezing orders include an ancillary disclosure order, requiring the respondent to swear an affidavit disclosing all assets above a specified value, both in Australia and worldwide. Failure to provide accurate disclosure is itself a contempt.

Why Choose Boss Lawyers for Freezing Order Applications

Freezing orders require urgent, precise, and experienced legal action. Mark Harley has over 17 years’ experience in commercial litigation, including in complex asset-tracing matters, enforcement of judgments, and applications involving fraud and dissipation of assets. Boss Lawyers has acted in matters requiring urgent Supreme Court applications and in proceedings involving offshore assets and complex corporate structures.

Whether you need to move urgently to protect your position, or you have been served with a freezing order and need expert representation to defend it, Boss Lawyers can help.

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This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances.

Call Mark Harley directly: 1300 267 711 | Get in Touch