Urgent Freezing Injunction Leads to Successful Settlement in Property Ownership Dispute
Our Litigation Team recently acted for a client in a property dispute involving several residential properties.
Although our client was not named on the legal title, they had contributed significantly towards the purchase of the properties and had also carried out extensive renovation and improvement works over a number of years. They maintained that those contributions had given rise to beneficial interests in the properties.
Following the breakdown of the parties' relationship, concerns arose that certain properties and other assets were being sold or transferred before our client's interests could be determined.
Protecting Assets at an Early Stage
With assets at risk of being moved beyond reach, urgent action was required.
Before proceedings had even been issued, we applied for and obtained a freezing injunction on a without notice basis. The court was satisfied that there was a real risk of assets being dissipated and granted the application.
The order prevented further dealings with the assets and ensured our client's position was protected while the dispute progressed.
Freezing Injunction Granted
At a subsequent hearing, the court continued the freezing injunction, subject to limited provision for ordinary living expenses.
Obtaining that protection at an early stage proved crucial. Had the assets been transferred or dissipated before the claim was resolved, it could have significantly affected our client's ability to recover what they believed they were entitled to.
Settlement Achieved Through Mediation
Following the commencement of proceedings under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA), the parties agreed to attend mediation.
The mediation resulted in a settlement, with our client receiving a substantial financial payment in recognition of their interests in properties that had already been sold. The dispute was resolved without the need for a contested trial, bringing what had become a highly contentious matter to an end.
The case serves as a reminder that legal ownership and beneficial ownership are not always the same thing. A person may be able to establish an interest in a property even where their name does not appear on the title deeds, particularly where they have contributed towards its purchase or invested significant time, money and effort in improving it.
Why Early Action Was Critical
This matter also highlights the importance of obtaining legal advice at an early stage where there is a risk that assets may be sold, transferred or otherwise placed beyond reach before a claim can be determined.
By securing urgent injunctive relief, we were able to protect our client's position and create the opportunity for a successful resolution through mediation rather than a lengthy trial.
How We Can Assist
Our Litigation Team advises on:
- TOLATA and beneficial interest disputes
- Freezing injunctions and other urgent court applications
- Asset preservation
- Property and trust litigation
- Mediation and negotiated settlements
If you are involved in a dispute concerning property ownership, or you are concerned that assets may be sold or transferred before your claim can be resolved, our team can provide practical, straightforward advice on the options available to you.
Contact our Litigation Team on 01271 340668 for a free initial discussion.