Interim measures: freezing accounts and assets

What is happening

Without waiting for the court, the debtor has begun moving assets: transferring equipment to a new company, selling a warehouse, closing its bank accounts. The creditor can see there will be nobody to enforce against by the time judgment comes.

The dispute concerns a specific asset or share: a counterparty is holding on to equipment, or a participant plans to sell a share whose ownership is contested. Without a ban on disposal, the judgment may be worthless.

The other side of the coin: the company learns from its bank that its accounts have been frozen by a court order in someone else's claim. Payments to suppliers and salaries have stopped, and the merits of the case have not even been heard yet.

What the law says

• Interim measures are governed by Chapter 8 of the Commercial Procedure Code (APK) in the commercial courts and Chapter 13 of the Code of Civil Procedure in the courts of general jurisdiction. They are available if, without them, enforcement of the judgment would be hindered or impossible, or the applicant would suffer significant harm.
• The court expects specific facts rather than general concerns: transactions disposing of assets, withdrawals from accounts, changes of participants or address, other claims against the debtor. The more precise the evidence, the better the chance of success.
• The application is decided without notice to the other side: in the commercial court no later than the day after it is received, and in a court of general jurisdiction on the day it is received. Surprise is built into the procedure itself.
• Measures must be proportionate to the claim: a freeze is limited to the amount claimed, and restrictions should not paralyse the defendant's business. The court may require counter-security, such as a deposit with the court or a bank guarantee.
• Under the APK, preliminary interim measures can be granted before a claim is filed; the claim must then be filed within the period set by the court, failing which the measures lapse.
• The defendant may apply for the measures to be lifted or replaced, for example by paying the sum into the court deposit or providing a bank guarantee. If the claim fails, the defendant may seek compensation for losses caused by the measures.

What we do

• We assess whether you have facts that will persuade the court of a real risk to enforcement, and what is missing.
• We gather evidence: extracts from the state registers of companies and real estate, information on the debtor's transactions, its court record and reports on its financial state.
• We draft the application, specifying the assets, accounts and amount precisely, and, where needed, an application for preliminary measures before the claim.
• We propose counter-security where the court may require it and help put it in place.
• We follow through on the order: sending the writ to the bank and the bailiffs and making sure restrictions are registered.
• If measures have been imposed against your company, we apply for them to be lifted or replaced and represent the company at the hearing.
• We assess the prospects of a claim for losses where the measures proved unjustified.

What we will need from you

• Documents supporting the underlying claim: the contract, primary documents, the claim letter, and the statement of claim or a draft.
• Everything known about what the debtor is doing with its assets: transactions, sale adverts, changes of director or address.
• Whatever information you have on the debtor's accounts and assets: bank details from contracts, warehouse addresses, details of equipment.
• If measures have been taken against you: the court order, the bank's notices and details of which payments are blocked.
• A power of attorney to represent the company.