The Grand Court of the Cayman Islands has ordered a free standing Mareva injunction, an order never before granted in the Cayman Islands.
“This case follows a modernizing trend, which is to be greatly welcomed, and is a significant contribution to cross-border co-operation and protection,” said Ogier Cayman Partner and Head of Litigation, Chris Russell, who together with Rachael Reynolds, Managing Associate and Will Jones, Associate, acted for the successful applicant for the injunction.
Named after a 1975 case in the UK – Mareva Compania Naviera S.A. v International Bulk Carriers S.A – a Mareva injunction (variously known also as a freezing order, Mareva order or Mareva regime) is a court order which freezes assets so that a defendant to an action cannot dissipate their assets from beyond the jurisdiction of a court so as to frustrate a judgment.
These injunctions are effective as so far as the defendant c-operates, released details of his assets and their exact whereabouts. However, if the assets are located outside the jurisdiction the institutions harbouring such assets may not take heed of the injunction fearing a lose of interests from customers. this is specifically applicable if the injunction remains on the register over a longer period of time.