Full and Frank Disclosure

Materiality Standard

The scope of this duty is not limited to facts known to the applicant. To satisfy the requirements of full and frank disclosure, the party must make all reasonable inquiries before coming to court. Ignorance of a fact is no excuse if a simple investigation would have revealed it.

Non-Disclosure Consequence

A failure to comply with this high standard has severe procedural penalties. If a court discovers that full and frank disclosure was not made, it will discharge the injunction immediately. This discharge can occur even if the applicant would have been entitled to the order anyway.

Injunction Application

The rule is most frequently tested during hearings for asset freezing orders. When making such an application, the duty of full and frank disclosure means revealing any potential defenses the respondent might raise. This ensures the court is not misled about the strength of the claim.