In Ian Franses (Liquidator of Arab News Network Ltd) v (1) Somar Al Assad (2) Mounir Developments SA (A Company Incorporated In Panama) (3) Trustees Of The Cayman Dolphin Trust (4) Trustees Of The Opus Trust – Lawtel 2.11.07 the Chancery Court held that an application for a freezing injunction should have been made, if at all, on notice. It also found that the application suffered from procedural flaws and the duty of full and frank disclosure to the court on a without notice application had been breached in respect of the funding of the proceedings and in respect of obtaining evidence by use of enquiry agents. The cumulative effect of those deficiencies justified an award of costs on an indemnity basis.
However, note that it was held that the public policy requiring full disclosure on without notice applications, and the need for a suitable deterrent, could be sufficiently met by an award of indemnity costs and the deficiencies in the original application were not so grave that the court should refuse to grant the more limited injunction sought in respect of the Spanish assets. An injunction was granted in the exercise of the court's discretion.