AB v CD

AB v CD

Exhaustion of D&O insurance constituted a material change of circumstances not reasonably foreseeable at the time of consent to proprietary freezing orders. Defendants demonstrated lack of other available assets. Court exercised discretion to permit release of £1.7m plus VAT for legal expenses, subject to security and safeguards, but excluded accrued fees.

Parties
Claimant/respondent: AB; Defendant/applicant: CD
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Civil / Interlocutory Application for Variation of Proprietary Freezing Orders
Outcome
Application granted in part
Legal Topics
Proprietary Injunctions, Freezing Orders, Release of Funds for Legal Expenses, Material Change of Circumstances, Consent Orders, Asset Tracing
Civil Procedure Fraud Trusts Proprietary Injunctions Freezing Orders Release of Funds for Legal Expenses Material Change of Circumstances Consent Orders +1 more

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Parties

AB

Claimant/respondent

CD

Defendant/applicant

Procedural Posture

Civil / Interlocutory Application for Variation of Proprietary Freezing Orders

Legal Issues

  1. 1 Whether there has been a material change of circumstances justifying variation of proprietary freezing orders to release funds for legal expenses
  2. 2 Whether Defendants have other available assets to fund legal representation
  3. 3 Appropriate quantum and safeguards for release of funds

Ratio Decidendi

Exhaustion of D&O insurance constituted a material change of circumstances not reasonably foreseeable at the time of consent to proprietary freezing orders. Defendants demonstrated lack of other available assets. Court exercised discretion to permit release of £1.7m plus VAT for legal expenses, subject to security and safeguards, but excluded accrued fees.

Court Disposition

Application granted in part

Orders

  • Release of £1.7m plus VAT from proprietary frozen assets for Defendants' legal expenses from date of Application Notice to end of trial
  • No release for accrued legal fees