Without notice applications for asset freezing and search orders – pitfalls

The fundamental and long-established duty of applicants for without notice relief is that they must act with the utmost good faith and disclose their case fully and frankly when the application is made. In this article, Laurence Katz of Holman Fenwick and Willan examines the duties of applicants for such relief and looks at some of the pitfalls to be avoided in obtaining without notice orders.

Laurence Katz, Partner in the Banking Insolvency and Fraud Practice at Holman Fenwick & Willan; email Laurence. Katz@hfw.co.uk © Holman Fenwick & Willan, November 2001.

The applicant’s duties

In Siporex Trade SA v Comdel Commodities Limited [1986] 2 Lloyd’s Rep. 428 at 437 , Bingham J summarised the duties of an applicant for without notice relief. This summary was approved by the Court of Appeal in Marc Rich & Co Holdings GmbH v Krasner, 15 January 1999, CA (unrep) . The applicant’s duties are: