JSC BTA Bank v Solodchenko

[2011] 1 WLR 888

14th December 2010

Court of Appeal


Should a respondent to a freezing injunction be permitted, on receipt of a freezing injunction, to say to himself that as X, Y & Z assets are held by him on trust for another, he need not inform the claimant about them and he may deal with those assets as if the order had not been made? The Bank submitted that the right answer to that question was no, and the Court of Appeal reluctantly agreed.

Thus the Court of Appeal held that wording included in paragraph 6 of the Commercial Court Guide 8th edition freezing injunction precedent (“…and whether the Respondent is interested in them legally, beneficially or otherwise…”) should be construed so as to catch assets held by the respondent to the freezing injunction as a trustee or nominee for a third party.

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