Jurisdiction(s):
United Kingdom

Continuation of freezing orders: principles, low merits threshold, dissipation risk, and full and frank disclosure—avoiding mini-trials and scattergun attacks in Piacquadio v Sparkes [2024] EWHC 2518 (Ch)

Published on: 08 November 2024

Published by a LexisNexis Restructuring & Insolvency expert

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Article summary

Piacquadio and another as joint liquidators of Smith & Partner Ltd (in liquidation) v Sparkes and others [2024] EWHC 2518 (Ch)

What are the practical implications of this case?

The Chancellor delivered a crisp restatement of familiar principles and set them to work in a dispute where most issues were argued at length. It thus offers both a succinct consolidation of the principles and a clear demonstration of how they operate. The decision also reiterates that, when asked to continue a freezing order, the court will not be swayed by forceful submissions or tactics that ignore established doctrine. In preparing for an inter partes hearing, parties should remember the modest threshold for showing a good arguable case in light of what can properly be determined at the interlocutory stage, and should approach full and frank disclosure complaints with proportionality and restraint...

What was the background?

The applicants were the joint liquidators of the second respondent (‘Company’). The first respondent had previously served as the Company’s director and shareholder, while the third respondent was alleged to have been a de facto director or a senior employee of the Company...

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