UK Fraud, Asset Tracing and Enforcement Update March 2025
Published on 20th March 2025
Developments in cross-border disputes law and practice in England and Wales
Welcome to our latest update and summary of recent developments for professionals, businesses and individuals looking to navigate fraud, enforcement and asset recovery issues.
This edition includes updates on the extra-territorial reach of freezing orders, the circumstances in which foreign judgments can found insolvency proceedings, the grant of anti-suit injunctions in support of foreign-seated arbitrations, the proper test for freezing orders, the grant of a Norwich Pharmacal order against a law firm, where freezing orders may be made in support of foreign proceedings, and an update on the Property (Digital Assets etc.) Bill.
As ever, if you would like to discuss any of the issues raised in this update, please get in touch with our specialist team.
High Court finds that foreign lawyer is not liable in tort for involvement in breach of English freezing order
The English High Court in Lakatamia Shipping Company Ltd v Su and others (2024) has dismissed two tort claims seeking to impose personal liability on a Monaco lawyer who was involved in the transfer of assets in breach of an English freezing order in circumstances where he was found to have understood that he was not acting unlawfully (based on the wording of the order). This judgment is the latest in a string of judgments in the case of Lakatamia v Su.
Foreign judgments cannot underpin insolvency proceedings unless recognised in the jurisdiction, says English Court of Appeal
Reversing the decision of the High Court, the Court of Appeal has determined that a creditor cannot rely on a foreign judgment to pursue insolvency proceedings unless the judgment has first been recognised in the jurisdiction.
UK Supreme Court makes landmark decision on anti-suit injunctions in support of foreign arbitration
In a landmark decision, the Supreme Court has held that the English courts have jurisdiction to grant anti-suit injunctions in support of foreign-seated arbitration proceedings in circumstances where the agreements to arbitrate were found to be governed by English law.
Court of Appeal in England clarifies 'good arguable case' test for freezing injunctions
Applicants for a freezing injunction must show a "good arguable case" on the merits of the claim. The Court of Appeal has now confirmed the correct threshold to be applied by the court is to be equated with (and should be reframed as) "serious issue to be tried", reversing a recent shift in High Court cases towards a higher threshold.
English High Court grants Norwich Pharmacal order against law firm 'unwittingly' mixed up in wrongdoing
The English High Court has granted a Norwich Pharmacal order against a law firm unwittingly mixed up in wrongdoing. The ruling confirms that no privilege existed over the identity of a third party that provided documents to solicitors.
English Court of Appeal clarifies scope of making orders in support of extra-jurisdictional proceedings
Following Brexit and the landmark decision of the Privy Council in Broad Idea International v Convoy Collaeral (2021), the English Court of Appeal confirmed that it would ordinarily be "inexpedient" to make a worldwide freezing order where respondents are neither resident nor have assets within the jurisdiction.
Bill to confirm legal status of digital assets introduced to UK Parliament
The Property (Digital Assets etc.) Bill was introduced on 11 September 2024 for its first reading in the Houses of Parliament. The aim of the bill is to remove restrictions that prevent digital assets from being recognised as personal property.
