Judge Ahmad Bache ruled that there are issues that need to be ventilated before a full trial.
“The Court had perused all the affidavits and was satisfied that parties are at variance on many issues, as there are many conflicting facts between them. Hence a trial should be conducted,” he said in his written judgment.
On the contention raised by the firm that Zaid’s lawsuit was time barred as he filed it more than 10 years after he left ZICO, Ahmad said the court is of the view issues related to limitation are “not a simple and straightforward matter” that can be disposed of through a striking out application.
“The affidavits filed by both sides run into many paragraphs and pages, that in themselves are testimony to the many facts that are actually in dispute.
“Hence, a trial should be conducted whereby witnesses will be called to give their testimonies as well as be cross-examined,” the judge said.
Ahmad added that Chew Seng Kok and Nik Norzrul Thani Nik Hassan Thani will have their “second bite of the cherry” when the case proceeds for a full hearing.
“However if I grant the striking out order, the plaintiff (Zaid) will obviously lose everything, particularly when he cannot refile the claim because of limitation issues,” he said.
Zaid, a former law minister, filed a suit against his former partners Chew and Nik Norzrul, last year. He said he could not use his personal name to set up a new firm, as he intends to return to private practice.
“So long as they continue to use my name, I am unable to set up my own law practice in my name. This is causing me severe prejudice as it affects my very livelihood,” he added.
The law firm wants the court to dismiss Zaid’s suit on grounds that he sold all his stake in the firm before joining Abdullah Ahmad Badawi’s Cabinet.
They said Zaid was paid over RM35 million when he disposed of his shares between June 2004 and March 2008.
“For the past 12 years (until the lawsuit was filed in October 2020), he never asserted any claim or interest in the equity, goodwill, name or any part of the business of the firm,” ZICO said in their defence.
Meanwhile, the court turned down Zaid’s bid to obtain a temporary injunction against the firm in using his name (ZICO) for practice, pending disposal of his lawsuit.
“If the injunction is granted it will affect the livelihood of some 250 individuals working with the firm and cause huge potential losses.
“Being the largest law firm in Malaysia, ZICO at any given time holds a large sum of money as stakeholders, as part of its services, including the sale of the infamous Equanimity yacht,” Ahmad said.
The judge noted that if Zaid intends to practice law again, he can still set up his own firm under a different style and name such as “Zaid Ibrahim and Associates” or “Chambers of Zaid Ibrahim”.
“He does not provide evidence that he will be facing difficulty in obtaining work if he is unable to use ZICO,” Ahmad added.
Zaid was represented by lawyers Malik Imtiaz Sarwar, Liew Teck Huat, Nizam Bashir and Eugene Jayaraj while Tommy Thomas appeared for ZICO.
In an immediate response, ZICO said they welcomed the court’s decision to turn down Zaid’s injunction bid.
“We have never disputed the plaintiff’s (Zaid) right to set up his own law firm with his own name under a different style. We maintain our position that the plaintiff’s action against our right to use the name “Zaid Ibrahim & Co” is without merit or basis in fact and in law,” the firm said, adding it will be business as usual for them.
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