Mareva Order Research Paper

The order finds its foundation in the judicially innovative response to Mareva Compania Naviera SA v International Bulk Carriers SA, wherein the judiciary sought to put a stop to defeat claims by disposing of assets through increasingly sophisticated and complicated schemes. In Australia, the jurisdiction to grant the order is found in the inherent power of the court to prevent frustration of abuse of process, in statutory provisions including s 23 of the Federal Court of Australia Act 1976 (Cth), and in equivalent state legislation. However, it ought to be noted that the power of the court under the Federal Court of Australia Act does not extend to the granting of a Mareva Order where it is intended to support pecuniary penalty orders. Failure to comply with a Mareva Order may result in adverse credibility findings throughout the remainder of the litigation, and may go so far as to result in contempt of court proceedings.
III RISKS POSED TO DEFENDANTS …show more content…
World-wide Mareva Orders may be granted by certain jurisdictions where the court in question clearly has jurisdiction over the defendant. In such instances, the order awarded can effectively freeze the assets of the defendant, regardless of where the defendant is situated at that time. This extra-territorial function is available under Australian law in that Mareva Orders may be serviced outside of Australia where there are assets in Australia. While the Court of Appeal in the Dadourian Group International Case provided guidelines for how courts should award and enforce Mareva Orders abroad, the guidelines were explicitly stated to not be exclusive, indicating that each application for the award of such an order ought to be considered on its own merits. Thus, the Mareva Order remains largely discretionary in