CHENG CHI LUNG v. BAKER & MCKENZIE, SOLICITORS (a firm)

CHENG CHI LUNG v. BAKER & MCKENZIE, SOLICITORS (a firm)

The court refused the solicitor defendants' applications for trial of the preliminary issue in HCA 4610 and HCA 4737 and dismissed applications for stays in the related actions because the practical advantages of a split trial were outweighed by the risks of delay, multiplicity of proceedings and appeals, likely increased costs, overlapping evidence and discovery requirements, and prejudice to a fair trial; accordingly all issues should proceed together and directions were adjourned.

Citation
CHENG CHI LUNG v. BAKER & MCKENZIE, SOLICITORS (a firm)
Parties
Plaintiff/defendant (developer): Tin Shui Wai Development Limited; 2nd Defendant/third Party (solicitors): Baker & McKenzie (solicitors); 2nd Defendant/third Party (solicitors): Stikeman Elliott (solicitors); Plaintiffs (purchasers): Various purchasers (individual plaintiffs)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 July 2006
Case Number
HCA1887/2003
Procedural Posture
Civil Contract and Professional Negligence (property Sale Under Consent Scheme) / Ruling on Applications for Preliminary Issue and for Stay; Directions Hearing Adjourned
Outcome
Applications for trial of preliminary issue in HCA 4610 and HCA 4737 refused; applications for stay in the related actions dismissed; strike‑out application by TSW allowed (subject to any appeal); directions hearing adjourned
Legal Topics
Consent Scheme Sale and Purchase, Right to Rescind, Completion of Development, Preliminary Issue, Application for Stay
Source Language
EN
Contract Law Professional Negligence Civil Procedure Property Law Consent Scheme Sale and Purchase Right to Rescind Completion of Development Preliminary Issue +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 6 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Tin Shui Wai Development Limited

Plaintiff/defendant (developer)

Baker & McKenzie (solicitors)

2nd Defendant/third Party (solicitors)

Stikeman Elliott (solicitors)

2nd Defendant/third Party (solicitors)

Various purchasers (individual plaintiffs)

Plaintiffs (purchasers)

Procedural Posture

Civil Contract and Professional Negligence (property Sale Under Consent Scheme) / Ruling on Applications for Preliminary Issue and for Stay; Directions Hearing Adjourned

Legal Issues

  1. 1 Whether the Development was complete as at 31 December 1997 for the purposes of clause 4(1)(c) of the Sale and Purchase Agreement
  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 duties of care to advise purchasers and preserve their right to rescind

Ratio Decidendi

The court refused the solicitor defendants' applications for trial of the preliminary issue in HCA 4610 and HCA 4737 and dismissed applications for stays in the related actions because the practical advantages of a split trial were outweighed by the risks of delay, multiplicity of proceedings and appeals, likely increased costs, overlapping evidence and discovery requirements, and prejudice to a fair trial; accordingly all issues should proceed together and directions were adjourned.

Court Disposition

Applications for trial of preliminary issue in HCA 4610 and HCA 4737 refused; applications for stay in the related actions dismissed; strike‑out application by TSW allowed (subject to any appeal); directions hearing adjourned

Orders

  • Application for trial of the preliminary issue (questions as to completion as at 31 December 1997 and accrual of right to rescind on 1 January 1998) in HCA 4610 and HCA 4737 refused
  • Applications for stay of the other listed proceedings pending determination of the preliminary issue dismissed