Area of Law: Fraud and Fraud Recovery
Answer # 1546
Cost of Mareva injunctionsRegion: Ontario Answer # 1546
Legal fees and expenses to obtain a Mareva injunction can be high. The more the fraudster opposes the application, the more the legal fees will increase. Therefore, before beginning the process of obtaining an injunction, the victim should conduct a cost/benefit analysis, considering the following:
- how much it will cost to obtain and to maintain a Mareva injunction,
- how strong their case is,
- the cost of further work and investigations that may be required to build their case, and
- if an injunction is obtained, will that be enough to persuade the fraudster to settle the case.
It is important to have a frank discussion about costs with your legal representative. Estimates on the costs of each stage of the application, the likelihood of the process being extended, and the outside limits of how much the victim is willing or able to spend are things that should be understood by both the victim and their lawyers. Once the process starts, it is difficult to stop.
Although it is often difficult to make cost predictions because the fraudster’s reaction to the application is not known, having limits on costs and knowing when they will be applied to each stage of the process can help the victim from facing runaway legal costs. Also, in some cases, lawyers will agree to finish the application and get payment at a later date.
If you discover you are a victim of fraud, it is a good idea to contact a fraud recovery expert for advice.
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