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 joinder application was dismissed because Chen is not a necessary party for effective adjudication under O15 r6(2)(b); his asserted claims post-date and are factually different from the issues set for trial; any successor rights would be bound by the trial under res judicata or could be protected post-judgment; receivership prevents transfers without receivers' involvement; and the late application would cause prejudice and disruption to imminent trial and case management.

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
Plaintiffs: Plaintiffs (employee plaintiffs); 1st Defendant: Mr Zhang; 2nd Defendant: 2nd Defendant; Intended Intervener / Applicant: Chen Hongqing
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 November 2017
Case Number
HCA623/2015
Procedural Posture
Interlocutory Joinder/intervention Application in Ongoing Civil Trial Concerning Proprietary Interests in Shares / Pre Trial (application to Be Joined Heard 10 November 2017; Trial Due to Start in ~20 Days)
Outcome
Summons (joinder/intervention application by Chen Hongqing) dismissed
Legal Topics
Joinder, Intervention, Equitable Assignment, Res Judicata / Issue Estoppel, Case Management and Prejudice, Inspection of Court File, Arbitration Clause Issues
Source Language
EN
Civil Procedure Trusts and Equitable Remedies Company Law Receivership Property Joinder Intervention Equitable Assignment +4 more

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Parties

Plaintiffs (employee plaintiffs)

Plaintiffs

Mr Zhang

1st Defendant

2nd Defendant

2nd Defendant

Chen Hongqing

Intended Intervener / Applicant

Procedural Posture

Interlocutory Joinder/intervention Application in Ongoing Civil Trial Concerning Proprietary Interests in Shares / Pre Trial (application to Be Joined Heard 10 November 2017; Trial Due to Start in ~20 Days)

Legal Issues

  1. 1 Whether the intended intervener (Chen) should be joined as an intervener or additional defendant under Order 15 r 6(2)(b)(i)/(ii)
  2. 2 Whether Chen is a necessary party to ensure effective determination of matters in dispute
  3. 3 Whether Chen is or will be bound by the trial outcome (res judicata/privy/successor in title)

Ratio Decidendi

The joinder application was dismissed because Chen is not a necessary party for effective adjudication under O15 r6(2)(b); his asserted claims post-date and are factually different from the issues set for trial; any successor rights would be bound by the trial under res judicata or could be protected post-judgment; receivership prevents transfers without receivers' involvement; and the late application would cause prejudice and disruption to imminent trial and case management.

Court Disposition

Summons (joinder/intervention application by Chen Hongqing) dismissed

Orders

  • Chen Hongqing's summons for joinder/intervention is dismissed