ARTICLE
22 January 2025

Freezing Assets To Protect Legal Claims: Your Right To Act Swiftly

Phoebus, Christos Clerides & Associates LLC (Clerides Legal)

Contributor

Phoebus, Christos Clerides & Associates LLC was founded in 1950. The firm was carried forward by the son of Phoebus Clerides – Dr. Christos Clerides of King’s College London. Phoebus Clerides was an ex-Minister of Justice and an ex-member of the House of Representatives. Dr. Christos Clerides was also an ex-member of the House of Representatives and the National Council of Cyprus, as well as President of the Cyprus Bar Association. Currently the office is lead by the third generation of advocates, Phoebe Cleridou, Alexandros Clerides and Constantinos Clerides. It has been active for 74 consecutive years in the provision of legal advice, services, and in the management and resolution of disputes with a specialisation in litigation. Out of court the firm provides advice in relation to corporate, commercial and related matters. In light of its long existence, the firm is active in all legal areas and is staffed with 16 professionals.
In the legal realm, securing temporary relief measures like asset freezing is critical in ensuring justice.
Cyprus Wealth Management

In the legal realm, securing temporary relief measures like asset freezing is critical in ensuring justice. This tool is especially vital when there is a risk that assets might be misappropriated, dissipated, or concealed before a case reaches its conclusion. Under Article 32 of the Courts of Justice Law, individuals can seek injunctions to preserve assets, offering a safeguard against irreversible harm during litigation.

The Importance of Asset-Freezing Orders

Asset freezing, or interim relief, empowers a court to issue orders preventing parties from transferring, using, or disposing of assets while legal proceedings are ongoing. This measure is particularly significant in cases involving:

  • Inheritance disputes: Where estate administrators need to secure assets for proper distribution.
  • Breach of trust claims: Preventing misuse of funds held on behalf of beneficiaries.
  • Property compensation cases: Protecting rights to settlements or compensation.
  • Breach of contractual obligations: Protecting contractual rights.
  • Violation of constitutional rights: It can also take the form of a restraining order in cases where the culprit – defendant must be forbidden to approach the innocent party – claimant for safety reasons.

In many cases, timing is crucial. Courts are guided by principles of equity and the potential risk of irreparable harm. The applicant must demonstrate urgency and the likelihood that, without an order, the opposing party's actions could render future remedies ineffective.

Legal Basis: Article 32

Under Article 32 of the Courts of Justice Law L. 14/60, the Court is empowered to grant interim injunctions when it is "just and convenient." However, applicants must satisfy key criteria:

  1. Serious Issue to Be Tried: The case must present a genuine legal question requiring judicial resolution.
  2. Irreparable Harm: Evidence must show that harm cannot be adequately remedied by monetary compensation alone.
  3. Balance of Convenience: Courts assess whether granting the injunction outweighs the inconvenience or harm it might cause to the opposing party.

Why Expertise in Asset-Freezing Matters

Applying for and securing an injunction requires meticulous preparation, as courts closely scrutinize the facts to ensure no abuse of this powerful legal tool. Failing to present a compelling and well-supported argument can result in denied relief or potential liabilities for damages if the injunction is found unjustified.

Your Advocate for Asset-Freezing Injunctions

As seasoned legal professionals, Phoebus, Christos Clerides & Associates LLC specialize in obtaining asset-freezing orders to safeguard our clients' interests. With our experience, we:

  • Present strong evidence to meet the stringent requirements under Article 32.
  • Ensure timely filings to address urgent risks to your claims.
  • Protect your rights while minimizing potential liabilities.

For any inquiries or further information about the legal topics discussed, please consult a legal professional or reach out to your trusted advisor. This article is intended for informational purposes only and does not constitute legal advice.

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