The Mareva Injunction – A “nuclear weapon” for defensive use

An inescapable part of the litigation process is that by bringing a claim, a claimant necessarily gives a defendant warning of what its case will be. An inherent risk is that a defendant may use the period between becoming aware of the claim and its trial to put assets beyond the reach of the claimant and thereby frustrating the effect of a future judgment. A Mareva Injunction is a means by which a claimant can “insure” itself against the potential dissipation of assets by a defendant and thereby protect a future judgment in its favour. Given the huge flow of financial services disputes that occur in the Cayman Islands courts, the injunctions are regularly sought and considered in our courts.