Loophole in freezing order closed off
11 December 2015Hogan Lovells
Hogan Lovells' London litigation team has secured a landmark victory in the UK Supreme Court, closing off a loophole in the English standard form freezing order.
The UK Supreme Court held that defendants subject to an English freezing order will no longer be able to direct the payment of loan proceeds, even if those monies never come into their own hands, as those proceeds are "assets" within the meaning of the freezing order.
Although the wording of the Hong Kong standard form freezing order differs from the English wording, this robust and pragmatic decision safeguarding the effectiveness of the freezing order regime provides useful guidance that, in appropriate cases, the Hong Kong courts can be asked to ensure Hong Kong freezing orders apply the intended effect of the English standard form.