Courts usually have broad discretion in deciding costs, where they take into account certain factors such as the parties’ conduct and the outcome of the case. Cost orders are made with the objective of compensating the successful party but also encouraging sensible litigation only when necessary.

There are three main types of cost orders that judges make in the event of interim hearings.

Costs in the case

This means that the costs of a particular application will only be decided at the very end of the claim. This helps save time from cost-related debates throughout the proceedings, especially if the application was needed to facilitate the progress of the case. The party that wins the case will generally be able to recover the costs of that application in the final costs order after the conclusion of the case.

Costs reserved

This means that the judge has deliberately held back from making a costs decision for a specific hearing. The cost issue is therefore postponed to be decided later based on other circumstances of the case such as litigation conduct and the reasons for the hearing, rather than requiring the losing party to pay the costs. It is common practice for practitioners to raise the issue of reserved costs at the next immediate hearing to ensure that they are settled and not overlooked.

No order as to costs

This means that each party pays their own costs for the hearing or application without any reference as to who the winning or losing party is. This means that no costs can be recovered even if a party was successful. There are implications to this order that the court considered the application unnecessary or overly aggressive (where parties were reluctant to engage in settlement or mediation), or if it was thought that both parties were partially at fault. Even if a party wins in court, they can still incur hefty legal costs due to their conduct throughout the proceedings.

Costs in any event

This means that the receiving party of the order receives its costs regardless of the eventual outcome of the claim. This is usually issued when one party has clearly won an interim issue within the case, and the court deems it fit to reimburse them in that moment.

To contact Nath Solicitors, please call us on 0203 983 8278 or email us at enquiries@nathsolicitors.co.uk.

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Why are SLAPPs brought?

SLAPPs are usually brought on the grounds of defamation, privacy, harassment, data protection and GDPR, or copyright infringements. Tactics typically used involve an excessive volume of letters before action, and multiple simultaneous claims across different jurisdictions. This establishes a clear imbalance in power and has the intention to overwhelm the opposition and drain the target’s finances, with the aim to coercively silence any undesirable publications that would be of public interest.

The Post Office’s Horizon Scandal from 1999-2015 was a clear demonstration of the destructive effects of SLAPPs to people’s livelihoods and how it obstructs the course of justice and the investigation of truth. Hundreds of sub-postmasters were wrongfully accused and prosecuted, facing imprisonment and penalties for the Post Office’s faulty administration system.

The Post Office was found to be issuing SLAPPs to silence voices of question, cover up their mistakes and halt investigations. The individual sub-postmasters and journalists could not withstand the immense financial and legal pressure against a nationwide institution, and the actions led to severe rates of bankruptcies, distress and even suicides of employees. It was not until 2019 that a group litigation action amongst 555 sub-postmasters led to the truth being revealed. Many convictions ended up being withdrawn in 2021 and compensation efforts were initiated.

This case study is a clear demonstration of the negative effects of SLAPPs – not only towards individuals, but also of wider public interests surrounding information and integrity. It is important to recognise the differences between fair legal action and outright abuse of the justice system.

At Nath Solicitors we provide legal expert advice on defamation cases. If you need assistance, please call us on 0203 983 8278 or email us at enquiries@nathsolicitors.co.uk.

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Freezing orders: Action correspondent to UWOs

UWOs alone cannot freeze or seize assets; therefore, they are frequently supplemented by court issued Interim Freezing Orders (IFOs). By preventing the respondent from dissipating, transferring or selling the assets under investigation, the property is ‘locked’ in place to allow proper investigation to take place without third party interference.

IFOs can be varied to allow limited access to funds to pay for reasonable living expenses or costs for legal assistance. The purpose of an IFO is not punishment, but rather to protect assets, ensuring their condition and ownership remain intact pending a final determination.

Procedure for obtaining a freezing order

Whenever a UWO is made, an IFO usually comes hand in hand, and it is common practice for enforcement authorities to apply for the freezing order at the same time as the UWO application. Such applications are typically made ex parte with the respondent will only being informed when both orders are served on them.

In granting an IFO alongside a UWO, it must be demonstrated that it is ‘necessary’ on the facts of the case, where there is a real risk of the assets being sold or transferred. The order, once effected, is usually in place until the enforcement authority decides on next steps.

Responding to a UWO and a freezing order

If you are served with a UWO, it is crucial to seek legal assistance as soon as possible to formulate a defence. Evidence and a clear timeline must be collated to prove the origin of your assets, how it was acquired, and where the funds to purchase assets, or the funds, came to be. Failure to respond by the deadline results in an automatic presumption of the targeted property having criminal origins. Non-compliance almost always results in the seizure and recovery of the assets under POCA 2002.

UWOs may also come with penal notices, resulting in contempt of court if ignored. It is possible that an incomplete defence may result in part of the property being recovered, and part of it being returned. It is imperative that you are honest in your defence as knowingly providing false information or failing to exercise care in verifying evidence before submission, constitutes a criminal offence.

In summary, if a UWO and IFO are served on you, it is important you seek urgent legal advice right away to construct a defence explaining the source of your wealth and assets. To contact Nath Solicitors, please call us on 0203 983 8278 or email us at enquiries@nathsolicitors.co.uk.

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1. A consent order which stays proceedings on terms agreed by both parties. This allows a party to return to court and enforce the agreement in the event that the other party fails to comply with its terms. It is important to note that the effect of the stay does not mean proceedings will be discontinued. The court will consider all the facts and circumstances of the case, and providing “proper grounds” or “good causes” can be established, the stay can be removed.
2. A schedule that sets out the terms of the settlement between the parties. The terms should be detailed and can go beyond the original scope of the dispute, so long as it is agreed by both parties. The nature of the schedule is a contract, where contractual terms apply, although these are not enforceable by the court as a judgment. There is usually a confidentiality clause within the schedule so to external parties it appears the court has simply ordered a stay of proceedings.

Tomlin order vs consent order

One of the main reasons Tomlin orders are widely used is because of its confidential nature. All binding terms of a standard consent order are publicly listed on the face of the order and are generally limited to the scope of the court proceedings. Tomlin orders are more appropriate for cases that have higher levels of complexity and where parties want settlement terms exceeding the scope of the original proceedings. For example, a consent order for a dispute case typically cover costs and/or prohibit a party from doing something detrimental to the other party, whereas a Tomlin order offers a broader range of actions that can be considered.

However, what Tomlin orders offer in terms of flexibility are balanced by lesser consequences of breach. Standard consent orders constitute fully sealed judgments, and any breach is seen as contempt of court. Tomlin orders on the other hand, are seen as contracts and not actual judgments – since the schedule is not part of the order to stay proceedings – the court’s role is therefore limited to the enforcement of the consent order. Upon a breach of the schedule, a party would have to commence a new set of proceedings to hold the other party to a breach of contract.

At Nath Solicitors we provide legal expert advice on disputes. If you need assistance, please call us on 0203 983 8278 or email us at enquiries@nathsolicitors.co.uk.

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Correspondingly, sell-outs are when minority shareholders require majority shareholders to buy out their shares after a takeover to enable them to exit from the company.

Benefits of squeeze-outs and sell-outs

Both mechanisms help prevent disputes with minority shareholders who oppose a takeover, which could lead to disruptive and uncooperative actions. This could lead to administrative difficulties and limits on the majority shareholder’s powers, such as passing special resolutions or calling general meetings at short notice. This offers both effectiveness and flexibility in large companies.

Minority shareholders could face detrimental outcomes following a takeover because of shifts in the company’s focus, a decline in their investment’s worth, or disagreements with the new managements strategies.

Squeeze-outs and sell-outs appear more frequently in situations of private company acquisitions and mergers and acquisitions (M&A).

Procedures

To account for potential minority shareholder opposition, rights for squeeze-outs are generally subject to significant restrictions.

If a takeover bid for company shares is successful, the acquirer must own over 90% of the shares. Then, they issue a formal notice indicating their plan to compulsorily acquire the remaining shares. If minority shareholders receive a squeeze-out notice, they have six weeks to ask the court to challenge the compulsory purchase offer or to negotiate the offer’s terms.

Drag-alongs

A drag-along clause is usually written into a shareholders’ agreement or the company’s articles and allows majority shareholders to force a sale of minority shares on the same price and terms as the majority. This usually happens in founder exits or private company sales where a majority shareholder decides to sell off their shares and the buyer intends to have full ownership over the company. For example, if a majority shareholder with a 75% shareholding wishes to sell off all their shares, drag-along rights vested in the company’s articles can compel the other shareholders of 15% and 10% to sell off theirs at the same rate as the majority shareholder as well. The sale is conducted under the same terms, which allows the buyer to acquire the whole company without the need for drawn-out negotiations.

If you need advice or assistance, please contact Nath Solicitors on 0203 983 8278 or get in touch with the firm online.

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Traditional partnerships are driven by the relationship between partners, who are also seen as agents of each other and the firm. If there is no tailored partnership agreement, the profits are generally shared equally unless agreed otherwise, and they share equal management rights.

Companies, on the other hand, have a separate legal personality, and disputes are handled through corporate governance methods such as board meetings, shareholder votes, and statutory remedies under the Companies Act 2006. Within a company, diverse roles, powers, and responsibilities, create a general framework of regulation and procedural rules.

Common grounds of dispute

Partnership disputes typically revolve around the following issues:

• Profit shares and each partner’s respective contributions
• Authority and decision-making powers
• Dissolution and asset division

Disputes concerning authority and agreements are particularly common because partners often hold greater power as agents. The nature of partnerships rely highly on trust and mutual confidence as any partner has the capacity to create liabilities for the entire firm. Furthermore, the partnership agreement makes it very hard to remove a partner. Therefore, conflict usually escalates into dissolution or exit disputes.

Company disputes, on the other hand, often concern the following:

• Exclusion from management
• Allegations of breach of directors’ duties
• Remuneration and dividend policies

The separation between ownership and management creates disputes related to control, as shareholders possess ownership and economic rights over the company, while directors exercise management and control. Disputes commonly arise between these two parties if shareholders do not feel involved in executive decisions, if directors act in favour of personal interests in breach of their fiduciary duties, or if a majority shareholding uses voting powers to monopolise company decisions.

Compared to partnerships, company disputes are process and formality-focused due to decisions generally made through formal mechanisms. The provisions for removal and appointment of directors also make it easy to make changes to the structure of the board through constitutional processes, such as board meetings, resolutions and votes.

Preventative measures for disputes

For partnerships, it is important to set out tight agreements from the point of initial formation, covering main areas such as authority, provisions for profit shares and contribution, expulsion and dissolution.

Companies benefit from clear governance rules and mechanisms for share transfer, appointment and expulsion, remuneration and shareholder-director relationships, if it is to avoid expensive statutory claims and facilitate early-stage resolution within the company.

At Nath Solicitors, we provide legal expert advice on company and shareholder matters. If you need assistance, please call us on 0203 983 8278 or email us at enquiries@nathsolicitors.co.uk.

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Purposes of IP clauses in contracts

• Clarifies ownership and prevents legal confusion, ultimately saving the company from costly conflicts and proceedings over intellectual property
• Offers solutions for potential infringement issues and sets definite usage limits
• Protects company assets from misuse or unauthorised disclosure

Examples of IP clauses and provisions

Licence grants are a typical feature of commercial agreements. Main considerations include:

• Whether the licence is exclusive – can other parties can hold the licence as well
• Scope of the licence – is it confined to the other contracting party’s internal use or transferable to others via a sub-licence?
• Whether the licence remains valid once the agreement has terminated or expired

Another clause is assignment of intellectual property. This is when a company fully transfers the IP to another party. Using language such as “assigns, all rights, title, and interest in and to the Intellectual Property” and “without limitation” suggests the company intends to completely surrender its IP rights.

Restrictions on use clauses are crucial in preventing undesirable and potentially legally grey situations where the other contracting party oversteps the intended boundaries of use or makes derivative creations of the IP.

Things to consider when drafting an IP contract

• Consider the jurisdiction(s) covered by the contract. Terms should be tailored to align with the respective jurisdictions’ IP laws and regulations to maximise protection
• Determine whether the other party is a freelancer, a company, or another entity, and the possible methods and purpose of using the IP
• Your legal rights over the IP, and correspondingly, the rights that you can delegate through contracts

If you need advice or assistance, please contact Nath Solicitors on 0203 983 8278 or get in touch with the firm online.

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There are two components that a defendant must show to rely on the public interest defence:

1. The statement in question must be, or must form, part of a publication that is on the topic of a matter of public interest, and
2. The defendant reasonably believed that publishing the statement or information would be in favour of public interest.

The second limb relates to responsible journalism. The court will consider all the circumstances of the case, the defendant’s subjective belief that the publication was in public interest, and the objective test of whether the belief was reasonable in the circumstances of the case.

Some of the factors the court may consider relevant are:

• Quality of the source of the information, their reliability, and any possible bias and motives
• The steps taken to verify the truthfulness and credibility of the facts reasonably
• Whether there was an urgent need to publish the information as soon as possible, or if the defendant could have taken more time to verify the information
• The proportionality of the piece published (whether suspicion was confused with factual evidence)
• Whether good faith was shown in the process of publication, e.g., whether decisions were recorded through notes, emails, and minutes

The defence is available to a range of publishers and not just investigative journalists. NGOs and campaigners, among other parties, can benefit from this defence as long as they reasonably fulfil and prove the two components stated in the Act.

Avoiding defamation from publications

It is good journalistic practice to be mindful of the tone of writing when publishing sensitive information, obtain consent from relevant parties when appropriate, be clear in separating facts from allegations and speculative opinions, and keep a record of sources and information checks. Adopting these safeguards will help prevent legal challenges and establish a robust defence.

At Nath Solicitors we provide legal expert advice on defamation. If you need assistance, please call us on 0203 983 8278 or email us at enquiries@nathsolicitors.co.uk.

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In civil litigation, a witness statement typically serves as their evidence in chief, functioning as the primary way parties present facts to support their claims. The witness statement, presented prior to evidence cross-examination between parties, establishes the case’s background and permits the court to examine various incidents, in order to determine a judgment.

Drafting a witness statement

There must not be any personal opinions about irrelevant issues contained in the witness statement. Report what the witness saw or were told about the current issue, without adding their thoughts on its meaning.

Witness statements should only contain evidence that the witness can give orally, so anything that is not of their direct knowledge, commenting on the contents of case bundle documents, or making submissions to the court are all prohibited. The evidence given must not be adopted from others’ and must be what the witness saw, heard, or knew of themselves. The evidence should also support the pleadings of the case; if the evidence departs from the statements of the case, then the statements should be amended so that they are consistent with each other.

The witness statement should be easy to understand, so the witness should stick to everyday language and avoid legal jargon they wouldn’t normally use. Careful phrasing should also be used for evidence that may not be completely credible, such as “I recall…” or “to the best of my knowledge…”. This is to prevent the entire witness statement from losing credibility because of unsupported claims. To preserve the witness’s credibility and integrity in court, it is advisable to rectify any gaps or inconsistencies found in accounts and documents.

At Nath Solicitors we provide legal expert advice on disputes. If you need assistance, please call us on 0203 983 8278 or email us at enquiries@nathsolicitors.co.uk.

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In many cases, businesses are given little or no explanation. It is possible that there will be no prior discussion, no chance to offer a response, and no substantial notice provided before the bank proceeds with its drastic action. Accounts are suddenly frozen, payments are blocked, direct debits fail, and the business is left paralysed. When financial institutions proceed with punitive actions based on insufficient data, automated risk alerts, or generalised compliance worries, without engaging in a thorough discussion with the client, the consequences can frequently be excessively severe.

At Nath Solicitors, we understand the urgency and seriousness of these situations. Our rapid intervention helps businesses facing unexpected account freezes or banking restrictions. We have extensive experience in applying for emergency injunctions, even those submitted without prior notice, to ensure banks lift illegitimate or unjustified restrictions before irreversible consequences arise.

The Devastating Consequences of a Bank Freeze

For many businesses, banking facilities are the lifeblood of daily operations. Without access to funds, a company may immediately face:

• Inability to pay staff wages
• Failure to meet supplier obligations
• Missed tax payments and regulatory obligations
• Loss of client confidence
• Damage to professional reputation
• Breach of contractual obligations
• Insolvency risks
• Regulatory intervention

The impact on regulated businesses can be severe and immediate, threatening their very existence. For example, a healthcare provider may be unable to pay clinical staff or maintain regulated operations; a law firm may not be able to handle client account transactions or fulfil professional obligations; and firms regulated by the FCA might suddenly struggle to meet compliance requirements due to problems with their operational accounts.

In practical terms, the bank’s actions can amount to shutting the business down overnight.

Draconian and Unjustified Conduct

Banks often justify freezes by referring vaguely to nebulous issues such as compliance concerns, risk reviews, anti-money laundering checks, or internal policies. However, businesses are frequently left in the dark and denied any meaningful opportunity to respond before devastating restrictions are imposed.

While banks have regulatory obligations, they are not entitled to act unfairly, irrationally, or disproportionately. In some cases, banks impose sweeping restrictions without proper investigation or rely on inaccurate assumptions, or automated compliance triggers; the result for businesses can be commercially disastrous.

The law does not give banks unlimited power to destroy a business without scrutiny, and where a bank has acted unlawfully, disproportionately, or in breach of its contractual duties, urgent legal remedies may be available.

The Importance of Acting Immediately

The longer a business remains non-operational, the greater the financial and reputational consequences become. The departure of clients, the termination of supplier agreements, and the collapse of staff confidence are all potential outcomes. In regulated sectors, prolonged restrictions can trigger further regulatory complications.

This is why urgent legal action is often essential.

At Nath Solicitors, we move quickly to assess the legality of the bank’s conduct and, where appropriate, prepare emergency court applications seeking urgent injunctive relief.

In the most serious cases, it may be necessary to make a without notice injunction application — meaning the application is made to the court urgently without first notifying the bank. This is particularly important where delay would defeat the purpose of the application or where the damage to the business is immediate and irreparable.

The courts recognise that urgent intervention may be necessary where a business faces catastrophic harm because of sudden banking restrictions.

Emergency Injunctions Against Banks

An emergency injunction can require a bank to:

• Remove or suspend account freezes
• Restore banking access
• Permit essential payments
• Re-enable trading facilities
• Prevent further restrictive action pending full determination of the dispute

These applications require detailed preparation, strong evidence, and immediate strategic action. The court will expect to see clear evidence demonstrating the urgency of the situation, the devastating commercial impact, and why immediate intervention is justified.

Nath Solicitors is experienced in handling urgent High Court applications and understands the speed, precision, and strategic thinking required in crisis situations.

We work rapidly to gather evidence, prepare witness statements, draft urgent applications, and present compelling arguments to the court.

Protecting Businesses Under Extreme Pressure

Sudden bank restrictions can leave business owners feeling powerless, facing overwhelming uncertainty, financial strain, and reputational damage. Our role is to take immediate control of the situation.

We understand these cases are not simply about frozen accounts — they are about protecting livelihoods, preserving businesses, safeguarding professional reputations, and preventing unjust commercial destruction.

We act decisively and strategically to challenge unfair banking conduct and seek urgent remedies before the damage becomes irreversible.

Why Businesses Choose Nath Solicitors

Nath Solicitors specialises in complex commercial disputes, urgent injunctions, and high-pressure litigation. We understand the devastating effect sudden banking restrictions can have on regulated and non-regulated businesses alike.

Clients instruct us because we combine:

• Rapid response times
• Strong High Court litigation expertise
• Experience with emergency injunctions
• Strategic and commercially focused advice
• Discreet and professional handling of sensitive matters
• Clear and decisive action under pressure

Where a bank has taken draconian and unjustified steps that threaten the survival of a business, swift legal action can make all the difference.

When your business faces the unexpected freezing or restriction of its banking facilities without notice, it is imperative to get urgent legal advice. Nath Solicitors can swiftly safeguard your business and seek urgent legal remedies in court when required.

If you need advice or assistance, please contact us on 0203 983 8278 or get in touch with us online.

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