The Mareva Injunction
This injunction is used to restrain the dissipation or removal of assets before or after a judgment.
To obtain a Mareva Injunction the following points must be satisfied to a Court:-
- There must be a substantive cause of action which is capable of being enforced against the other party;
- There must be a ‘good arguable case’ against the other party;
- The applicant must establish that the respondent has assets and that there is a real risk that they will remove the assets or otherwise dispose of them in some way which would mean that the person applying would not be able to receive what is due to and the court order or anticipated order of the Court.
- The assets of the person must be capable of being frozen regardless of whether they are within or outside the jurisdiction of the Court; and
- The balance of convenience must be in favour of granting the injunction.
Banking institutions are commonly affected by Mareva Injunctions.
It is critical to a Mareva application that the applicant establishes with evidence that the respondent is likely to remove their assets or dispose of them with a view of avoiding their obligations towards the applicant. That evidence can be difficult to obtain but it can be demonstrated from actual statements of the respondent, the respondent’s personality and previous course of dealing with the plaintiff.
This type of injunction can be enforced in some other jurisdictions outside Ireland under the Brussels & Lugano Conventions.
If you require further information please contact us at our Cork or Dublin offices.