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

The court limited the ambit of the strike-out process: it refused to allow a broad multi-day trial or unfettered filing of further evidence, ordered the strike-out summons be set down for argument on a fixed date (estimated half a day), stayed the claims of the 1,072 plaintiffs pending the outcome of the strike-out...

Source-derived case information.

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
Applicant (solicitors for Plaintiffs; Brought Strike Out Summons): K&L Gates; Respondent (solicitors for 1,072 Plaintiffs and 5 Additional Plaintiffs): Stephenson Harwood; Multi Party Litigants (initially 2,631 Plaintiffs; Divided Representation Between K&l Gates and Stephenson Harwood): Plaintiffs (collective)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 July 2017
Case Number
HCA623/2015
Procedural Posture
Interlocutory Application to Strike Out Notices of Change of Solicitors / Directions Hearing in Chambers (pre Trial); Interlocutory; Matter Set Down for Trial Nov 2017
Outcome
Interlocutory directions given: strike-out summons to be set down for argument; stay imposed on claims of 1,072 plaintiffs; further evidence barred without leave; costs of the hearing reserved to be in the cause.
Legal Topics
Change of Solicitors, Validity of Retainer, Strike Out Summons, Stay of Proceedings, Evidence and Leave to File Further Evidence
Source Language
en
Civil Procedure Solicitor Client Relations Court Supervisory Jurisdiction Interlocutory Practice Change of Solicitors Validity of Retainer Strike Out Summons Stay of Proceedings +1 more

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Parties

K&L Gates

Applicant (solicitors for Plaintiffs; Brought Strike Out Summons)

Stephenson Harwood

Respondent (solicitors for 1,072 Plaintiffs and 5 Additional Plaintiffs)

Plaintiffs (collective)

Multi Party Litigants (initially 2,631 Plaintiffs; Divided Representation Between K&l Gates and Stephenson Harwood)

Procedural Posture

Interlocutory Application to Strike Out Notices of Change of Solicitors / Directions Hearing in Chambers (pre Trial); Interlocutory; Matter Set Down for Trial Nov 2017

Legal Issues

  1. 1 Whether Notices of Change of Solicitors filed by Stephenson Harwood were valid
  2. 2 Whether K&L Gates had standing/authority to bring a strike-out summons on behalf of all plaintiffs
  3. 3 Whether the retainer of Stephenson Harwood was procured by duress or coercion

Ratio Decidendi

The court limited the ambit of the strike-out process: it refused to allow a broad multi-day trial or unfettered filing of further evidence, ordered the strike-out summons be set down for argument on a fixed date (estimated half a day), stayed the claims of the 1,072 plaintiffs pending the outcome of the strike-out summons, and directed that no further evidence be filed without leave; these measures reflect that validity of SH's retainer must be determined by focused interlocutory process rather than a wide-ranging inquiry.

Court Disposition

Interlocutory directions given: strike-out summons to be set down for argument; stay imposed on claims of 1,072 plaintiffs; further evidence barred without leave; costs of the hearing reserved to be 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, estimated half a day.
  • No further evidence may be filed without leave of the court.