Continental-wide recovery – the European Account Preservation Order

Pursuit of assets in cross-border proceedings in the European Union is set to become easier under proposals for a new European Account Preservation Order. Joseph Kean of Mundays looks at the mechanics, together with the pluses and minuses for claimants and defendants.

Joseph Kean (+44 (0)1932 590 500, joseph.kean@mundays. co.uk) is a partner in the Dispute Resolution Team at Mundays Solicitors LLP (www.mundays.co.uk)

A vital consideration at the start of any court process is whether the proposed defendant will be able to pay any judgment which the claimant might obtain. Having satisfied yourself that the defendant is “good for the cash”, consideration then turns to whether they may act to avoid payment in some way, by perhaps dissipating or hiding their assets. The position is further complicated when the defendant is resident in a foreign jurisdiction and the claimant will have to enforce the judgment against assets there.