CHOY CHI KIN AND ANOTHER v. TIN SHUI WAI DEVELOPMENT LTD AND ANOTHER

CHOY CHI KIN AND ANOTHER v. TIN SHUI WAI DEVELOPMENT LTD AND ANOTHER

The court refused the solicitor defendants' applications to try the preliminary issue separately and refused stays of the other proceedings because the matters raised factual disputes requiring full trial and discovery, splitting trials would cause injustice, delay and increased cost and risk to fair trial; the strike-out application by the developer was allowed (subject to appeal); directions hearing and costs to be dealt with at the adjourned directions hearing.

Citation
CHOY CHI KIN AND ANOTHER v. TIN SHUI WAI DEVELOPMENT LTD AND ANOTHER
Parties
Plaintiff / 1st Defendant (various Actions): Tin Shui Wai Development Limited; 2nd Defendant / Third Party (various Actions): Baker & McKenzie; 2nd Defendant (various Actions): Stikeman, Elliott (and Lam See Man Francoise trading as Stikeman Elliott); Plaintiffs (hca 4610/2003): Lau Chung Fai and Lam Man Yee; Plaintiff (hca 1887/2003): Cheng Chi Lung; Plaintiffs (hca 4737/2003): Kan Moon Tong Danny and Lau Wing Fong
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 July 2006
Case Number
HCA4671/2003
Procedural Posture
Civil: Contract and Professional Negligence Arising From Pre Sale Agreements for Uncompleted Residential Units / Interlocutory Ruling on Applications for Trial of Preliminary Issue, Stays and Strike Out (directions Hearing Adjourned)
Outcome
Applications by solicitor defendants for trial of preliminary issue refused; applications for stay dismissed; developer's strike-out application allowed; directions hearing adjourned; costs to be heard at directions hearing.
Legal Topics
Completion of Development, Rescission, Solicitor Negligence, Preliminary Issue, Stay of Proceedings, Strike Out Under Rules of the High Court
Source Language
EN

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Parties

Tin Shui Wai Development Limited

Plaintiff / 1st Defendant (various Actions)

Baker & McKenzie

2nd Defendant / Third Party (various Actions)

Stikeman, Elliott (and Lam See Man Francoise trading as Stikeman Elliott)

2nd Defendant (various Actions)

Lau Chung Fai and Lam Man Yee

Plaintiffs (hca 4610/2003)

Cheng Chi Lung

Plaintiff (hca 1887/2003)

Kan Moon Tong Danny and Lau Wing Fong

Plaintiffs (hca 4737/2003)

Procedural Posture

Civil: Contract and Professional Negligence Arising From Pre Sale Agreements for Uncompleted Residential Units / Interlocutory Ruling on Applications for Trial of Preliminary Issue, Stays and Strike Out (directions Hearing Adjourned)

  1. 1 Whether the Development as defined in the sale and purchase agreement was complete by 31 December 1997
  2. 2 Whether a right of rescission under clause 4(4)(a) accrued on 1 January 1998
  3. 3 Whether the solicitors owed and breached a duty of care to advise plaintiffs and preserve their right to rescind

Ratio Decidendi

The court refused the solicitor defendants' applications to try the preliminary issue separately and refused stays of the other proceedings because the matters raised factual disputes requiring full trial and discovery, splitting trials would cause injustice, delay and increased cost and risk to fair trial; the strike-out application by the developer was allowed (subject to appeal); directions hearing and costs to be dealt with at the adjourned directions hearing.

Court Disposition

Applications by solicitor defendants for trial of preliminary issue refused; applications for stay dismissed; developer's strike-out application allowed; directions hearing adjourned; costs to be heard at directions hearing.

Orders

  • Application for separate trial of preliminary issue in HCA 4610 and HCA 4737 refused
  • Applications for stay of other proceedings dismissed