Costs
tend to mount exponentially. And even after the lawyers close their files and render their final bills the personal relations of the spouses will likely remain forever soured”.21.Those words continue to ring true. True, the application was not made without notice, but with only 1 hour’s notice to W it was to all intents and purposes a unilateral step. There is no novel point of law in this case, nor are the facts themselves particularly notable, although the wealth is far beyond that of most people. But this case is a salutary reminder to practitioners, if reminder is needed, that the legal and procedural pre-requisites of a freezing order application, or s37 application, as set out in UL v BK must be complied with before the court will be willing to entertain granting such an order. 22.I also take the view that the application was defective in two particular respects, although ultimately this has not influenced my decision on the substantive merits:i)The application was supported by a witness statement, yet PD20A para 3.1 of the Family Procedure Rules 2020 mandates that “Applications for search orders and freezing injunctions must be supported by affidavit evidence (emphasis added)”, in contra distinction to other forms of interim injunctions which must be supported by either a witness statement or the application notice provided it is verified by a statement of truth; and ii)The draft order put before Morgan J made no provision for W’s costs of living, the school fees for the parties’ child (which W had always paid) and W’s legal fees, all of which should have been included as standard exceptions to the full rigours of the proposed freezing order. 23.The application is dismissed. Morgan J was, in my view, entirely correct to refuse to make the order at the first hearing, and the unsustainability of the application became even clearer when W subsequently produced her evidence. W has offered a form of wording to be incorporated by way of recital which (with some amendments by me) I reproduce as:i)“W states that she has no intention to withdraw funds from her Investment portfolio.”ii)“W states that she no intention to sell, mortgage, charge, or otherwise deal with the property.”iii)“W agrees to give H 7 days notice in writing of any intention to (a) withdraw funds from her Investment portfolio AND/OR (b) sell, mortgage, charge, or otherwise deal with the property.”iv)“W considers that as a matter of law she is beneficially entitled to 100% of the property, and in any event expects and intends that the transfer of legal title into her sole name shall be registered as soon as practicable”.I consider that her agreement to include these clauses in the preamble to my order is constructive and pragmatic. Costs24.I invited counsel to make provisional submissions on costs at the hearing, on the alternative basis of either (i) a decision to grant H’s application for a freezing order or (ii) a refusal to do so. Both counsel invited me to determine costs in this written judgment. In the event, I have refused H’s application. The “clean sheet” principle applies to a freezing application; that is to say there is neither a starting point of no order as to costs, nor a starting point that costs follow the event. I bear in mind CPR 44.2, save for sub paragraphs (2) and (3) which are disapplied by Rule 28.2(1) of the Family Procedure Rules 2010. I consider that H should pay W’s costs on the standard basis. Although I have found against him, in my view the threshold for making an indemnity costs order against him is not made out. I will assess those costs summarily. W’s Form N260 puts her total costs of the application and three hearings at £39,027. Looking at the statement of costs in the round, I propose to take a 30% deduction to reflect the likely outcome of a detailed assessment. H shall therefore contribute £27,318 to W’s costs. That sum shall not be enforced until the conclusion of the financial remedy proceedings. To make him liable now for the costs order would not be fair given that he does not have assets to pay the sum due. I anticipate that this debt to W will be deducted from his final award.