High Court Refuses To Overturn Law Firm Shutdown

The High Court on Wednesday refused to overturn the Law Society's decision to shut down a law firm alleged to have misappropriated its clients’ funds.

The application for an interim injunction order was made by a partner of the troubled firm Wong, Fung & Co.

The firm’s lawyer told a hearing that, as a result of the Law Society’s intervention, thousands of people who wanted to complete property transactions had been affected.

"It may be disorganised, but not dishonest", the legal counsel said, adding that there's "absolutely no evidence that the clients' money is affected or in jeopardy.”

He added there was no basis to the claim that there was a shortfall of HK$23 million, as claimed by the Law Society. He also said allegations that a former clerk had misappropriated clients’ money were not related to the firms’ bank accounts.

The lawyer demanded the money in the bank accounts, frozen as a result of the Law Society intervention, be returned to the clients as soon as possible.

However, counsel for the Law Society said "the running of the firm is unruly and unsafe". He said the body’s action was not taken lightly and was based on its best judgement and the best interest of the wider society.

"What we have seen in the documents and from the ongoing investigations so far, the accounts are in utter disarray," he said.

He said steps have been taken to minimise the impact on the firm’s clients, and the court should not intervene in its investigations.

While Judge Russell Coleman said he understood the concerns and frustration of the clients, it is better to address the matter by way of judicial review.

He said the case will be heard on February 11.

After the hearing, two clients of the firm held a banner outside the court building protesting against the Law Society's decision. They were warned by the police that they risk flouting social distancing rules if the gathering contained more than two people.