RWK Goodman advises on applications for contempt of Court relating to breach of Worldwide Freezing Orders
RWK Goodman are advising on the recovery of loans totalling approximately €26m, advanced for the purpose of fulfilling contracts for the provision of Personal protective equipment (PPE) equipment to the Spanish government.
Upon discovering that those contracts did not in fact exist, our client obtained Worldwide Freezing Orders to freeze the assets of the two Defendants. Shortly thereafter, the Defendants sold a property that was a named asset in the Worldwide Freezing Orders. The sale was not discovered until a year later, at which point the client issued applications for contempt.
The applications were heard on 26 April 2024 by Dame Moulder DBE, sitting as a High Court Judge in the Commercial Court. Sentencing was handed down on 29 April. A month before the hearing, the Defendants admitted the breaches. They submitted witness statements in mitigation, but declined to attend the hearing.
One of the issues raised was the impact of the Defendants’ non-attendance on the weight applied to witness statements in mitigation (an on-going area of law following the Isbilen v Turk decision in March 2024). The Defendants were each sentenced to a nine-month custodial sentence which was reflective of the serious nature of the breach.
RWK Goodman’s team comprised of Dan Dodman, Ellie Spencer and Natalie May-Beshir. Stephen Cogley KC and Simon Goldstone appeared for the Claimant.
Dan Dodman commented:
“Breaching a freezing order is obviously a very serious matter, particularly the dissipation of assets covered by that order. This case serves as a stark warning to persons subject to freezing orders, and will provide some comfort to those seeking to uphold their effectiveness.”
Judgement on Courts and Tribunals Judiciary website: Committal for Contempt of Court: Ahmad -v- Ouajjou and Perez – Courts and Tribunals Judiciary
