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 refused because Chen is not necessary to ensure the effective and complete determination of the matters in dispute under O15 r6(2)(b); even if the rule applied joinder is discretionary and would be refused due to undue prejudice and disruption to an imminent trial, overlapping interests with existing plaintiffs' representatives, the receivership which precludes transfers without receiver involvement, and alternative remedies available to Chen.

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
HCA939/2015
Procedural Posture
Civil Action Concerning Proprietary Interests in Shares and Interlocutory Joinder Application / Interlocutory Hearing on Joinder Application Prior to Trial (hearing 10 November 2017; Trial Due to Start in 20 Days)
Outcome
Summons (joinder application) dismissed
Legal Topics
Joinder/intervention, Equitable Assignment, Res Judicata and Issue Estoppel, Constructive Trust, Proprietary Claim to Shares, Case Management and Prejudice
Source Language
EN
Civil Procedure Trusts and Equitable Interests Company Law Receivership Evidence and Case Management Joinder/intervention Equitable Assignment Res Judicata and Issue Estoppel +3 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

Civil Action Concerning Proprietary Interests in Shares and Interlocutory Joinder Application / Interlocutory Hearing on Joinder Application Prior to Trial (hearing 10 November 2017; Trial Due to Start in 20 Days)

Legal Issues

  1. 1 Whether the applicant Chen should be joined as an intervener or additional defendant
  2. 2 Whether Chen's asserted equitable assignment of employee plaintiffs' interests requires his joinder
  3. 3 Whether allowing late joinder would cause prejudice and disrupt imminent trial

Ratio Decidendi

The joinder application was refused because Chen is not necessary to ensure the effective and complete determination of the matters in dispute under O15 r6(2)(b); even if the rule applied joinder is discretionary and would be refused due to undue prejudice and disruption to an imminent trial, overlapping interests with existing plaintiffs' representatives, the receivership which precludes transfers without receiver involvement, and alternative remedies available to Chen.

Court Disposition

Summons (joinder application) dismissed

Orders

  • Summons dismissed