20 December 2019

Caveats are a simple and cost effective means by which we can protect your business from having a Court order served on it without any warning.

What is a caveat?

A caveat is a document which we can prepare and lodge in any Scottish court on behalf of an individual, LLP or company, the effect of which obliges the court to contact us to provide an early warning if an aggressive Pursuer seeks an immediate (or interim) court order against you or your business.

What purpose does a caveat serve?

Whilst a caveat will not of itself prevent court proceedings from being raised against you or your business, nor does it work to prevent applications for arrestment or an inhibition, certain types of order cannot be granted without your business having first been given the opportunity to address the court as to why the interim order sought should not be granted.

The court on receipt of an application for an interim order is under an obligation to contact us if we have lodged a caveat on your behalf to advise that the application has come in. No order can be made against you at that time and a hearing, at which we attend, is then fixed.

What would happen without a caveat?

If no caveat has been lodged, a party raising a court action can ask the court to grant various interim orders before proceedings have even been served, without you knowing about it and without you having any opportunity to object. Such orders include interim interdicts, provisional liquidation, administration and any application for a bankruptcy order.

How long do caveats last?

Caveats last for twelve months and must be renewed annually.

At BTO we believe no business should be without caveats in place. We recommend you lodge caveats in any relevant Sheriff Court where you have a place of business or registered office as well as in the Court of Session in Edinburgh.

What next?

We charge a competitive fee for lodging caveats in both the Sheriff Courts and the Court of Session. Our systems are also set up to remind you one month before they are due to expire when we will contact you for your instructions on renewal. Contact us if you are interested in putting caveats in place.

Contact: Grant Hunter, Partner T: 0141 221 8012 E: ghu@bto.co.uk