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01 October 2019
The disclosure bar for freezing applications is firmly policed. In Tugushev v Orlov (No 2)(1) the High Court has provided a further reminder of the perils of failing to comply with the duty of full and frank disclosure on ex parte applications.
The case concerned a dispute between Mr Orlov and Mr Tugushev over a stake in the international fishing business, Norebo Group.
In July 2018 Tugushev made a without notice application for a worldwide freezing order against Orlov's assets.
Orlov challenged the worldwide freezing order on the basis of alleged breaches by Tugushev of his duty of full and frank disclosure when making his without notice application before Judge Bryan (the non-disclosure application).
Orlov identified four main categories of alleged failure by Tugushev in his duty of full and frank disclosure – namely, a (deliberate) failure to:
In relation to the four main categories of alleged failure, the court found the following:
The judge held that Tugushev's failure to present clearly the credibility of Orlov's claim was material and justified the discharge of the worldwide freezing order.
This case has again highlighted the onerous burden on applications for worldwide freezing orders to carry out reasonable enquiries to comply with the duty of full and frank disclosure. The court expects applicants to investigate properly the factual basis of their own assertions and that of the likely defence. Willfully ignoring potential sources of unhelpful documentation will not be tolerated. Further, one material failure can mean discharge and a refusal to re-grant, as in the case at hand.
For further information on this topic please contact Emily Saffer or Andy McGregor at RPC by telephone (+44 20 3060 6000) or email (email@example.com or firstname.lastname@example.org). The RPC website can be accessed at www.rpc.co.uk.
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