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Review Your SQE 1 Practice Records

Examination Timing: 00H00M51S

Rebecca, a claimant, commences proceedings against a defendant, David. Shortly after receiving David's defence, Rebecca notices a 'sold' sign outside David's home, which is his only asset. When Rebecca contacts the estate agent, she learns that the house was sold for substantially less than its current value. Which of the following best describes how Rebecca should proceed?

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Given the circumstances, there is sufficient evidence for Rebecca to suspect that David is attempting to dissipate his assets to avoid paying any future judgment. Rebecca should apply for a freezing injunction without notice to prevent David from further disposing of his assets, as giving notice would defeat the purpose of the injunction. Option D is incorrect as giving notice would allow David the opportunity to dissipate assets before the injunction is granted. A search order is not suitable because it is used to preserve evidence, not prevent asset dissipation, making Options B and C incorrect. Option E is incorrect because Rebecca's suspicion warrants an immediate application for a freezing injunction. 

Key Point: Freezing injunctions are used to prevent a defendant from dissipating assets to avoid enforcement of a judgment. Applications are often made without notice to ensure effectiveness.

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