The High Court has dismissed two applications relating to a worldwide freezing injunction in respect of the defendants’ assets.
The claimants asserted that the defendants were in breach of the terms of the injunction as they had realised the surrender value in a life insurance policy and caused funds to be paid out of an account held by a company owned and controlled by the second defendant.
The court dismissed the claimants’ application for a declaration that there had been a breach. Although the court had jurisdiction to grant declaratory relief in these circumstances, it should not exercise its discretion to do so because there was a risk of injustice to the defendants.
The judgment reiterates that committal proceedings for contempt of court are the appropriate remedy for an alleged breach of a freezing injunction.
Lakatamia Shipping Company v Nobu Su and others [2013] EWHC 1814 (Comm). (Bank St Petersburg and another v Arkhangelsky and others [2014] EWHC 574 (Ch).)