LIU CHUNG FAI AND ANOTHER v. TIN SHUI WAI DEVELOPMENT LTD AND ANOTHER

LIU CHUNG FAI AND ANOTHER v. TIN SHUI WAI DEVELOPMENT LTD AND ANOTHER

The court refused the applications for trial of the preliminary issue and dismissed the applications for stays because splitting the trial would not be just and convenient: it would not materially shorten time to final determination given likely discovery and witness evidence, would increase costs and delay, risk prejudice from faded memories and unavailable witnesses, and cause injustice. Accordingly all issues should proceed together and a directions hearing is to be fixed to manage the cases.

Citation
LIU CHUNG FAI AND ANOTHER v. TIN SHUI WAI DEVELOPMENT LTD AND ANOTHER
Parties
Plaintiff/1st Defendant (various Actions): Tin Shui Wai Development Limited; 2nd Defendant/third Party Solicitors (various Actions): Baker & McKenzie; 2nd Defendant/third Party Solicitors (various Actions): Stikeman Elliott & Co.; Plaintiffs (hca 4610/2003): Lau Chung Fai and Lam Man Yee; Plaintiffs (hca 4737/2003): Kan Moon Tong Danny and Lau Wing Fong; Plaintiff (hca 1887/2003): Cheng Chi Lung; Defendant (hca 1482/2003): Fu Ka Tsang
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 July 2006
Case Number
HCA4610/2003
Procedural Posture
Multiple Civil Actions in the High Court (contract and Professional Negligence Arising From Sale and Purchase Agreements) / Pre Trial: Ruling on Applications for Trial of Preliminary Issue and for Stay; Directions Hearing to Be Fixed
Outcome
Applications for trial of preliminary issue in HCA 4610 and HCA 4737 refused; applications for stay in the other related actions dismissed; directions hearing adjourned to a date to be fixed; costs to be addressed at directions hearing.
Legal Topics
Preliminary Issue, Stay of Proceedings, Strike Out, Rescission of Contract, Duty of Solicitors
Source Language
EN
Contract Law Professional Negligence Civil Procedure Property Law Preliminary Issue Stay of Proceedings Strike Out Rescission of Contract +1 more

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Parties

Tin Shui Wai Development Limited

Plaintiff/1st Defendant (various Actions)

Baker & McKenzie

2nd Defendant/third Party Solicitors (various Actions)

Stikeman Elliott & Co.

2nd Defendant/third Party Solicitors (various Actions)

Lau Chung Fai and Lam Man Yee

Plaintiffs (hca 4610/2003)

Kan Moon Tong Danny and Lau Wing Fong

Plaintiffs (hca 4737/2003)

Cheng Chi Lung

Plaintiff (hca 1887/2003)

Fu Ka Tsang

Defendant (hca 1482/2003)

Procedural Posture

Multiple Civil Actions in the High Court (contract and Professional Negligence Arising From Sale and Purchase Agreements) / Pre Trial: Ruling on Applications for Trial of Preliminary Issue and for Stay; Directions Hearing to Be Fixed

Legal Issues

  1. 1 Whether the Development was complete as at 31 December 1997 for the purposes of clause 4(1)(c) of the standard Sale and Purchase Agreement
  2. 2 Whether a right of rescission pursuant to clause 4(4)(a) accrued on 1 January 1998
  3. 3 Whether the solicitors owed and breached a duty to advise/remind purchasers so that rescission would not be nugatory

Ratio Decidendi

The court refused the applications for trial of the preliminary issue and dismissed the applications for stays because splitting the trial would not be just and convenient: it would not materially shorten time to final determination given likely discovery and witness evidence, would increase costs and delay, risk prejudice from faded memories and unavailable witnesses, and cause injustice. Accordingly all issues should proceed together and a directions hearing is to be fixed to manage the cases.

Court Disposition

Applications for trial of preliminary issue in HCA 4610 and HCA 4737 refused; applications for stay in the other related actions dismissed; directions hearing adjourned to a date to be fixed; costs to be addressed at directions hearing.

Orders

  • Application for preliminary issue in HCA 4610 and HCA 4737 refused
  • Applications for stay of proceedings in the related actions dismissed