Effective Methods for Securing Assets in Germany

German law offers defrauded parties a unique opportunity to secure claims for restitution of property and for damages by combining freezing orders pursuant to private law with seizure orders from the German criminal law authorities. This article outlines how this tool can be effectively utilised.

Freezing orders under German law

Freezing orders are designed to secure the main claim which is, or may become, the subject matter of a lawsuit. Freezing orders aim to prevent a defendant from removing assets out of the reach of a claimant, and thus to frustrate the enforcement of the judgment. A freezing order is granted by the competent German court without notice to the defendant if the following conditions are met:

Jurisdiction

In accordance with Art. 31 of Council Regulation 44/2001, the German courts apply their autonomous law to determine international jurisdiction and venue. The claimant can choose to file his application for a freezing order either with the court competent to hear the main lawsuit or with the Local Court (Amtsgericht) within the district in which the assets to be seized are located. The German courts usually assume broad jurisdiction.

Main claim to be secured

The application for the freezing order must contain all the facts upon which the main claim to be secured by the order is based. For these facts, prima facie evidence has to be provided by the claimant. The court will determine the content...