Wallace acts for successful parties in significant decision concerning enforcement of Worldwide Freezing Orders

April 2006

Wallace acted for the successful parties in last week’s significant Court of Appeal decision setting out the circumstances in which the English court will permit a party to enforce a worldwide freezing order (WFO) in a foreign court.

Wallace is acting for Dadourian Group International and others in their claims for fraudulent misrepresentation and conspiracy which are currently the subject of a six week trial taking place in the High Court.  At an earlier stage, the claimants obtained interim relief against the defendants to prevent dissipation of their assets in the form of a WFO.  Subsequently, the English court gave the claimants permission to enforce the WFO in Switzerland, France and the United States.  The defendants appealed against the grant by the English court of permission to enforce the WFO in Switzerland.  The Court of Appeal heard the appeal in November 2005.

In finding for the claimants, the Court of Appeal stated that this was the first case of its kind to come before the court directly on any appeal.  The court laid down what it called the “Dadourian guidelines” setting out the circumstances in which the court should give permission to allow the enforcement of a WFO in a foreign court.  The Court of Appeal held that the claimants had satisfied these requirements and the decision to allow enforcement of the WFO in Switzerland should be upheld. 

Simon Serota, head of Litigation at Wallace, said: “This decision has significant implications for enforcement abroad of WFO’s. The ruling has emphasised the principle that the English court must actively control and monitor the overseas enforcement of WFO’s; applicants will now need to come to court with full details of the nature and effect of the steps they wish to take abroad.

Wallace instructed barristers Clive Freedman QC and Charles Samek of Littleton Chambers.