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What is a Caveat and Do I Need One?

What is a Caveat and Do I Need One?

A Caveat is a document that a private individual or company can lodge at any Sheriff Court in Scotland and at the Court of Session to provide you with the advantage of a pre-warning that certain types of court orders are being sought against you.

The Caveat will have the effect of preventing an interim order being granted against you without you being informed that such an order has been asked for, and for you to be given a chance to be heard or represented in court.

A person or company can seek a variety of pre-service orders against you or your business including interim interdicts (an order of the court preventing you or your business from doing something), arrestment on the dependence (an order to arrest money in bank accounts pending the outcome of an action) and even provisional liquidation.

The court will consider whether a person has the right to have such an order granted against another but that person will not get the opportunity to address the court on reasons why it should not be granted or to be represented by a Solicitor or Advocate to do so. The person or company would require later to argue that such an order should be recalled.

Therefore, one way to protect yourself or your company from such orders being granted without your knowledge is to lodge a caveat document with your local Sheriff Court (in the area you reside or that your business operates) and/or with the Court of Session in Edinburgh containing your name and contact details, or that of your chosen Solicitor to represent you. The caveat will remain in place for 1 year then will require to be renewed.

TC Young can assist with the drafting and lodging of caveats and can discuss whether it is something that may be of benefit to you or your company. Click here to contact one of our experienced court team members

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