LONG HAI HONG (龍海紅) the administratrix of the estate of LEE SO WINSTON (李甦), deceased (suing on behalf of herself and all other shareholders in the 5th defendant other than the 1st to 3rd defendants) v. LIU DAN AND OTHERS

LONG HAI HONG (龍海紅) the administratrix of the estate of LEE SO WINSTON (李甦), deceased (suing on behalf of herself and all other shareholders in the 5th defendant other than the 1st to 3rd defendants) v. LIU DAN AND OTHERS

The court found a substantial overlap of underlying factual and legal issues (beneficial ownership of disputed shares, nominee arrangements, identity of foreign investor, and the relationships among Winston, Liu and Xing), a substantial overlap of key parties and witnesses, no convincing evidence that consolidation was premature or would create an unmanageable conflict, and therefore ordered the four actions to be tried together to save costs, avoid inconsistent findings and streamline evidence.

Citation
[2022] HKCFI 339
Parties
Applicant / Plaintiff / Administratrix: Long Hai Hong; 1st Respondent / Defendant (non‑participating): Chan Yu, Lydia; 2nd Respondent / 5th Defendant: A J K Company Limited; 3rd Respondent / 1st Defendant: Liu Dan; 2nd Defendant: Xing Zhirong; 4th Defendant: China Terry Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 January 2022
Case Number
HCA175/2018
Procedural Posture
Consolidation Application / Case Management Re Multi‑action Trial / Pre‑trial Case Management (directions for Trial Together; Discovery Pending)
Outcome
Summons granted; the four actions to be tried together before the same judge
Legal Topics
Consolidation/trial Together, Rectification of Register, Derivative Action, Nominee/trust Disputes, Constructive Trust, Share Transfers, Directors' Duties, Succession and Letters of Administration
Source Language
EN
Company Law Civil Procedure Trusts and Fiduciary Law Partnership Law Probate/estate Administration Consolidation/trial Together Rectification of Register Derivative Action +5 more

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Parties

Long Hai Hong

Applicant / Plaintiff / Administratrix

Chan Yu, Lydia

1st Respondent / Defendant (non‑participating)

A J K Company Limited

2nd Respondent / 5th Defendant

Liu Dan

3rd Respondent / 1st Defendant

Xing Zhirong

2nd Defendant

China Terry Limited

4th Defendant

Procedural Posture

Consolidation Application / Case Management Re Multi‑action Trial / Pre‑trial Case Management (directions for Trial Together; Discovery Pending)

Legal Issues

  1. 1 Whether four related actions should be tried together under court's case management powers
  2. 2 Whether there is substantial overlap of factual and legal issues across the actions (beneficial ownership of shares, nature of nominee arrangements, identity of foreign investor)
  3. 3 Whether there is substantial overlap of parties and witnesses

Ratio Decidendi

The court found a substantial overlap of underlying factual and legal issues (beneficial ownership of disputed shares, nominee arrangements, identity of foreign investor, and the relationships among Winston, Liu and Xing), a substantial overlap of key parties and witnesses, no convincing evidence that consolidation was premature or would create an unmanageable conflict, and therefore ordered the four actions to be tried together to save costs, avoid inconsistent findings and streamline evidence.

Court Disposition

Summons granted; the four actions to be tried together before the same judge

Orders

  • The four actions (HCMP 3179/2013; HCA 175/2018; HCA 721/2019; HCMP 1537/2019) shall be tried together before one judge
  • Case management directions to be given for discovery and for consolidated witness statements and trial preparation