What is the concept of mareva injunctions and how can it be used in international litigation?
Mareva injunctions, or asset freezing orders, are an important tool of international litigation. These orders are used to freeze a defendant’s assets in anticipation of a judgment in a particular case, allowing claimants to be compensated if the defendant is found liable. The Mareva injunction was developed in England in 1975 and has since been adopted in many countries, including the United States and Washington. Mareva injunctions are intended to prevent a defendant from dissipating or transferring assets outside the jurisdiction and to ensure that the defendant maintains enough assets to pay a potential judgment. In order to use a Mareva injunction, a defendant must have a presence or assets in the jurisdiction, and there must be a reasonable fear that the defendant will remove or dissipate assets to avoid any potential judgment. When a Mareva injunction is issued, the defendant is barred from transferring or discharging any asset except for necessary living expenses. The injunction may be imposed on a bank account, real estate, or anything else necessary to secure a potential judgment. The Mareva injunction can be used in international litigation to ensure that claimants who are based outside of the jurisdiction are compensated if a defendant is found liable in a particular dispute.
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