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 strike-out summons raises a discrete question about the validity of Stephenson Harwood's retainer in light of prior written instructions to K&L Gates and authorisations to a third party; it did not justify a sprawling multi-day trial with widescale cross-examination. The court exercised case management by limiting further evidence without leave, ordering a half-day argument hearing to determine the strike-out issue, and staying the claims of the 1,072 plaintiffs pending the outcome of that summons.

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
Solicitors on Record for Plaintiffs / Applicant (brought Strike Out Summons): K&L Gates; Solicitors for Identified Plaintiffs (respondent to Strike Out Summons): Stephenson Harwood; Plaintiffs (multiple, Variously Represented): Consolidated plaintiffs
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 July 2017
Case Number
HCA1564/2015
Procedural Posture
Civil Litigation Consolidated Actions (dispute Over Solicitor Retainer and Representation) / Chambers Directions on Strike Out Summons / Pre Trial (hearing and Interlocutory Directions)
Outcome
Interlocutory directions given: strike-out summons to be set down for argument; evidence restricted; claims of the 1,072 plaintiffs stayed; costs of the 30 June hearing reserved to be in the cause.
Legal Topics
Change of Solicitors, Validity of Retainer, Strike Out Application, Stay of Proceedings, Evidentiary Particulars for Duress Allegations
Source Language
EN
Civil Procedure Solicitor Client Relations Legal Ethics Court Supervisory Jurisdiction Change of Solicitors Validity of Retainer Strike Out Application Stay of Proceedings +1 more

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Parties

K&L Gates

Solicitors on Record for Plaintiffs / Applicant (brought Strike Out Summons)

Stephenson Harwood

Solicitors for Identified Plaintiffs (respondent to Strike Out Summons)

Consolidated plaintiffs

Plaintiffs (multiple, Variously Represented)

Procedural Posture

Civil Litigation Consolidated Actions (dispute Over Solicitor Retainer and Representation) / Chambers Directions on Strike Out Summons / Pre Trial (hearing and Interlocutory Directions)

Legal Issues

  1. 1 Whether the Notices of Change of Solicitors filed by Stephenson Harwood for 1,072 plaintiffs should be struck out
  2. 2 Whether the retainer obtained by Stephenson Harwood was valid in light of prior written instructions/special mandate to K&L Gates and alleged authorisation to Mr Gao Yong
  3. 3 Whether the strike-out summons warrants a multi-day trial with cross-examination on allegations of coercion and conflicts of interest

Ratio Decidendi

The strike-out summons raises a discrete question about the validity of Stephenson Harwood's retainer in light of prior written instructions to K&L Gates and authorisations to a third party; it did not justify a sprawling multi-day trial with widescale cross-examination. The court exercised case management by limiting further evidence without leave, ordering a half-day argument hearing to determine the strike-out issue, and staying the claims of the 1,072 plaintiffs pending the outcome of that summons.

Court Disposition

Interlocutory directions given: strike-out summons to be set down for argument; evidence restricted; claims of the 1,072 plaintiffs stayed; costs of the 30 June 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 with an estimate of half a day
  • No further evidence may be filed without leave of the court