Mareva Injunction: A Comprehensive Guide to Asset Freezing in Law

Definition & Meaning

A Mareva injunction, also known as a freezing injunction, is a court order primarily used in England and the United Kingdom to prevent a defendant from transferring or disposing of their assets. This type of injunction is typically sought by a plaintiff when there is a concern that the defendant may try to move their assets out of the court's jurisdiction to avoid paying any future judgment. The injunction is named after the landmark 1975 case, Mareva Compania Naviera SA v International Bulkcarriers SA.

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Legal Use & context

Mareva injunctions are commonly used in civil litigation, particularly in cases involving fraud or breach of contract. They serve as a protective measure to ensure that a defendant does not diminish their assets before a court can reach a decision. Users can find relevant legal forms and templates through resources like US Legal Forms, which can assist in filing for such injunctions.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A company files a lawsuit against a former employee for misappropriating funds. The company obtains a Mareva injunction to prevent the employee from selling their home or transferring money to offshore accounts while the case is pending.

Example 2: A creditor seeks a Mareva injunction against a debtor who is suspected of hiding assets to evade payment of a court judgment (hypothetical example).

State-by-state differences

Examples of state differences (not exhaustive):

State	Key Differences
California	Mareva injunctions are not commonly used; alternative measures may be pursued.
New York	Similar injunctions exist, but they are referred to as asset freezes.
Texas	Texas law allows for similar protective orders, but procedures may differ.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition	Key Differences
Mareva Injunction	A court order to freeze a defendant's assets.	Specific to preventing asset dissipation pending litigation.
Asset Freeze	A broader term for preventing asset transfer.	May apply in various legal contexts, not just civil litigation.
Attachment	A legal seizure of property to secure a judgment.	Usually occurs after a judgment is made, unlike Mareva injunctions.

Common misunderstandings

People often think a Mareva injunction grants ownership of assets to the plaintiff. In reality, it only prevents the defendant from disposing of their assets.
Some believe Mareva injunctions are only available for high-value claims. However, they can be sought in various cases where asset protection is necessary.
There is a misconception that Mareva injunctions are permanent. They are temporary and remain in effect only until the court makes a final decision.

What to do if this term applies to you

If you believe a Mareva injunction is necessary in your case, consider the following steps:

Consult with a legal professional to assess your situation and the likelihood of obtaining an injunction.
Gather evidence to support your claim that the defendant may dissipate their assets.
Explore US Legal Forms for templates and resources to assist in filing for a Mareva injunction.
Be prepared for a court hearing where you will need to present your case.

For complex matters, seeking professional legal help is highly recommended.

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Quick facts

Typical fees: Varies by jurisdiction and legal representation.
Jurisdiction: Primarily used in England and the UK.
Possible penalties for violation: Contempt of court, which may lead to fines or imprisonment.