Relevant employees whose shares in China Shanshui Investment Company Limited held by ZHANG CAIKUI on trust (Please refer to Schedule 1 attached to the Writ of Summons for names of the relevant employees) AND ANOTHER v. ZHANG CAIKUI AND ANOTHER

Relevant employees whose shares in China Shanshui Investment Company Limited held by ZHANG CAIKUI on trust (Please refer to Schedule 1 attached to the Writ of Summons for names of the relevant employees) AND ANOTHER v. ZHANG CAIKUI AND ANOTHER

A strike-out summons is not the appropriate vehicle for a broad inquiry into solicitors' conduct or contested allegations of coercion absent clear particulars; the proper course was to determine the validity of the retainer by limited interlocutory process, list the strike-out summons for argument, restrict further evidence without leave, and stay the affected plaintiffs' claims pending that determination.

Citation
Relevant employees whose shares in China Shanshui Investment Company Limited held by ZHANG CAIKUI on trust (Please refer to Schedule 1 attached to the Writ of Summons for names of the relevant employees) AND ANOTHER v. ZHANG CAIKUI AND ANOTHER
Parties
Solicitors for 1,072 Plaintiffs: Stephenson Harwood; Solicitors for the Plaintiffs (on Record for C.2,631 Plaintiffs): K&L Gates
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 July 2017
Case Number
HCA2191/2014
Procedural Posture
Strike Out Summons in Consolidated Civil Actions / Directions Hearing in Chambers (pre Trial)
Outcome
Directed interlocutory management: strike-out summons to be listed for argument; restriction on further evidence; stay of claims for the affected plaintiffs; costs in the cause.
Legal Topics
Change of Solicitors, Validity of Retainer, Strike Out Application, Stay of Proceedings, Authority and Mandate
Source Language
EN
Civil Procedure Solicitors' Conduct Professional Responsibility Costs Representation Change of Solicitors Validity of Retainer Strike Out Application +2 more

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Parties

Stephenson Harwood

Solicitors for 1,072 Plaintiffs

K&L Gates

Solicitors for the Plaintiffs (on Record for C.2,631 Plaintiffs)

Procedural Posture

Strike Out Summons in Consolidated Civil Actions / Directions Hearing in Chambers (pre Trial)

Legal Issues

  1. 1 Whether Notices of Change of Solicitors filed by Stephenson Harwood for 1,072 plaintiffs should be struck out
  2. 2 Whether Stephenson Harwood validly represents those plaintiffs in light of prior retainer with K&L Gates and special mandate to Gao Yong
  3. 3 Whether allegations of duress, coercion or conflict justify a full trial or cross-examination on the strike-out summons

Ratio Decidendi

A strike-out summons is not the appropriate vehicle for a broad inquiry into solicitors' conduct or contested allegations of coercion absent clear particulars; the proper course was to determine the validity of the retainer by limited interlocutory process, list the strike-out summons for argument, restrict further evidence without leave, and stay the affected plaintiffs' claims pending that determination.

Court Disposition

Directed interlocutory management: strike-out summons to be listed for argument; restriction on further evidence; stay of claims for the affected plaintiffs; costs in the cause.

Orders

  • Strike-out summons to be set down for argument on a date to be fixed as early as possible in consultation with counsel with an estimate of half a day.
  • No further evidence may be filed without leave of the court.