Emergency Arbitral Interim Orders in Cross Border Offshore Holdings
Emergency arbitral orders freeze offshore asset transfers and share registers within fourteen days, protecting equity value during joint venture deadlocks.
Mareva Relief
Meaning
Pre-emptive court injunction that prevents a defendant from disposing of assets to ensure that funds remain available to satisfy a future judgment. This order freezes the bank accounts and property of the person being sued. It is a powerful tool used in cases where there is a risk that the defendant will hide their wealth before the trial ends.
Wealth Preservation
The court protects the ability of the plaintiff to recover the money they are owed. A grant of mareva relief ensures that the defendant cannot transfer their assets to a third party or move them to another country. This protection is necessary in international fraud cases where funds can disappear quickly.
Threshold Requirement
The applicant must prove they have a strong case and that there is a real risk of the assets being wasted. An application for mareva relief requires a full disclosure of the financial situation of both parties. This high standard prevents the use of the injunction for harassment or to gain an unfair advantage in a commercial negotiation.
Global Reach
Orders can extend to assets located anywhere in the world if the court has the authority over the individual. A worldwide mareva relief requires the cooperation of foreign banks and legal systems to be effective. This scope ensures that the defendant cannot escape their obligations by moving their money to a offshore account.