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Commercial litigation: Asset-stripping and judgment avoidance

The ruling in Marex Financials provides a new useful tool against third parties dissipating a judgment debtor's assets, says Leigh Callaway

26 May 2017

In a judgment that will be of interest to judgment creditors and debtors alike, in Marex Financial Ltd v Sevilleja Garcia [2017] EWHC 918 (Comm), Mr Justice Knowles considered whether a shadow director who had allegedly dissipated the companies’ (debtors’) assets had committed the tort of inducing or procuring the companies to act in wrongful violation of the claimant’s rights under an existing judgment.

In 2013, the claimant (Marex) brought claims against Creative Finance Limited and Cosmorex Limited. In the usual way, the judge released a draft of his ruling on 19 July 2013, awarding judgment in favour of Marex in excess of $5m. The judgment in final form was handed down on 26 July 2013. A freezing order was obtained by Marex against the companies on 14 August 2013. The companies made disclosure of their assets pursuant to the freezing order, stating assets of only $4,392.48.M...

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