Appeal Court sets world freezing order rules

The Court of Appeal has outlined a set of guidelines on enforcing world freezing orders, or Mareva orders, after noting that no appeal court had dealt with them before.

The eight rules will be referred to as the Dadourian Guidelines, named after Dadourian Group International, the successful respondent in the appeal. They can be found within paragraph 25 of the judgment and detail the conditions needed to enforce world freezing orders in foreign jurisdictions.

Typical freezing orders include orders for the respondent to preserve assets and not leave the jurisdiction. Regarding this, Guideline 7 states that “there must be evidence of a risk of dissipation of the assets in question” before a freezing order can be enforced abroad.

The guidelines will also require lawyers to provide more information on foreign proceedings to judges when applying for world freezing orders.

Guideline 5 demands: “The evidence in support of the application for permission should contain all the information… necessary to make the judge reach an informed decision, including evidence as to the applicable law and practice in the foreign court.”

Clive Freedman QC and Charles Samek of Littleton Chambers were instructed by Wallace to represent the respondent. The appellant, Simms & Ors, was advised by Addleshaw Goddard, which instructed Joe Smouha QC of Essex Court Chambers.