In Ontario, seeking an urgent Mareva injunction to freeze a debtor or partner’s bank accounts typically costs between $20,000 and $50,000+ CAD in upfront legal fees. This is an extreme, emergency court order granted by the Superior Court of Justice to prevent someone from hiding or moving assets offshore before a trial occurs.
When high-stakes business disputes arise in Ontario, there is a very real danger that a bad-faith actor will try to empty corporate bank accounts or transfer real estate to avoid paying a future judgment. If you discover that your business partner in Toronto is embezzling funds, or a major commercial debtor is quietly liquidating their Ontario assets to flee the country, a standard lawsuit is too slow.
You need a “Mareva injunction.” Often referred to as the law’s “nuclear weapon,” a Mareva injunction is a powerful, temporary court order that instantly freezes the defendant’s assets globally or within Canada. 🔒 Because this strips a person or company of their ability to use their own money before they have even been found guilty at trial, Ontario judges grant them only in exceptional circumstances. It requires an aggressive, lightning-fast legal strategy and a significant financial war chest. This guide details the costs, risks, and procedural steps of securing a Mareva injunction.
Step-by-Step Process in Ontario
Obtaining a Mareva injunction involves an intense sprint by your legal team. It is almost always done ex parte, meaning you go to the judge in secret, without notifying the defendant, so they do not have a chance to move the money the moment they learn you are suing them.
Step 1: Urgent Case Assessment and Asset Tracing
The moment you suspect fraud or asset dissipation, you must contact a commercial litigation lawyer immediately. 👨💼 Your legal team, often alongside forensic accountants, will work around the clock to trace where the money has gone. To win this injunction, you cannot just suspect they are moving money; you must have tangible evidence of a real risk of dissipation.
Step 2: Drafting the Affidavit (Full and Frank Disclosure)
Because you are asking a judge to freeze someone’s life without them being present to defend themselves, Ontario law demands absolute honesty. Your lawyer will draft a massive sworn Affidavit. You must provide “full and frank disclosure,” meaning you are legally required to point out the weaknesses in your own case and any defences the other side might raise. If you hide facts from the judge, the injunction will be thrown out later, and you will be heavily penalized.
Step 3: The Undertaking as to Damages
Before the judge grants the order, you must legally pledge an “undertaking as to damages.” 💰 This is a formal promise that if it turns out you were wrong, and freezing the defendant’s assets caused their innocent business to collapse, you will personally pay them for all the financial damages they suffered. The judge may even require you to post a cash bond into the court to prove you can afford this.
Step 4: The Ex Parte Hearing and Serving the Order
Your lawyer will appear before a judge at the Superior Court of Justice (often the Commercial List in Toronto) in an urgent, closed-door hearing. If the judge signs the Mareva injunction, your team instantly serves the court order on all major Canadian banks, land registry offices, and the defendant. The banks are legally bound to immediately freeze the target’s accounts.
Step 5: The Comeback Hearing
An ex parte Mareva injunction is only temporary (usually lasting 10 to 14 days). Soon after, a “Comeback Hearing” is scheduled. 🔄 This is when the defendant gets their day in court. Their lawyers will fiercely argue that the injunction was unfair and should be lifted. Both sides will battle over whether the freeze should remain in place until the actual trial takes place months or years down the road.
How Much Does it Cost in Ontario?
A Mareva injunction is one of the most labor-intensive motions in Canadian law. Your legal team may literally work 24/7 for several days to draft hundreds of pages of evidence before the money disappears. You are paying for ultimate urgency and top-tier litigation experience.
| Injunction Phase | Estimated Legal Fees (CAD) | What Drives the Cost |
|---|---|---|
| Urgent Investigation & Tracing | $5,000 – $15,000 | Hiring private investigators or forensic accountants to find hidden bank accounts, offshore trusts, or shell companies. |
| Drafting the Ex Parte Motion | $15,000 – $30,000+ | Multiple lawyers working late nights to draft flawless affidavits and legal factums outlining “full and frank disclosure”. |
| The Comeback Hearing | $10,000 – $25,000+ | Defending the injunction against the opposing party’s legal team who will aggressively try to strike it down. |
| Court & Process Server Fees | $500 – $1,500 | Filing fees and hiring urgent process servers to physically hand the court orders to bank managers across the province. |
It is crucial to remember that these massive fees are just the cost of freezing the money. You still have to pay the regular ongoing legal fees to actually fight the underlying lawsuit and prove your case at the final trial. 💵
How Long Does the Process Take?
Because the risk of losing the assets is imminent, the timeline for a Mareva injunction is measured in hours and days, not months.
- Preparation to Filing: Depending on how quickly evidence can be gathered, a law firm can prepare the motion and get before a judge in 2 to 5 days.
- Asset Freezing: The moment the order is signed and served on the banks, the assets are frozen instantly.
- The Comeback Hearing: This adversarial hearing usually takes place within 10 to 14 days of the initial freeze.
Frequently Asked Questions (FAQ)
What happens if the defendant needs money to live or run their business?
Ontario judges do not want to starve people or needlessly bankrupt an operating company. A Mareva injunction always includes a “carve-out” clause. This allows the frozen party to access a specific, reasonable amount of money each month to pay for basic living expenses (like rent and groceries), standard business operations, and their own legal fees.
Can a Mareva injunction freeze assets outside of Canada?
Yes. The Superior Court of Justice can issue a “worldwide Mareva injunction” if there is evidence the money has been moved offshore. However, enforcing an Ontario court order in a foreign country requires hiring local lawyers in that jurisdiction to get the foreign banks to recognize the Canadian order.
What exactly is the “test” the judge uses?
To win, you must prove three things to the judge: 1) You have a strong prima facie case (a very high likelihood of winning at trial). 2) The defendant has assets in the jurisdiction. 3) There is a real risk that those assets will be dissipated or hidden before you can get a final judgment.
What if I fail to provide “full and frank disclosure”?
If the defendant proves at the Comeback Hearing that you purposely hid evidence or lied to the judge to get the injunction, the judge will immediately dissolve the freeze order. Furthermore, the court will likely order you to pay heavy financial penalties and all of the defendant’s legal fees.
Is a Mareva injunction the same as a Certificate of Pending Litigation (CPL)?
No. A CPL specifically ties up a piece of real estate (land/property) so it cannot be sold. A Mareva injunction is much broader-it applies to the person or company generally, freezing bank accounts, stock portfolios, vehicles, and other non-real estate assets.
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