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Old June 30th, 2006, 10:40 AM   #1
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Yan Qingxin, Zhang Qi, and Liu Junguo suffered a Humiliating Defeat

Yan Qingxin, Zhang Qi, and Liu Junguo suffered a Humiliating Defeat

in Their Lawsuit against Zhang Hongbao

The Court Ruled against Them in an Indemnity of $610,000

 

(Boxum.com, May 28, 2006)

http://www.peacehall.com/news/gb/par...05282136.shtml



[Zhong Ying, a news critic of Legal Consultant, issued the following report from Los Angeles on May 25] On May 5, with the defeat of Liu Junguo’s appeal, the civil litigation launched by Yan Qingxin and Zhang Qi, with Liu Junguo as their legal counsel, against Zhang Hongbao, as well as Zhou Yongjun, World Journal, Tsingdao Daily, China Daily and Omnitalk.com came to a conclusion. The court ruled against Yan Qingxin and Zhang Qi, who have to pay the reparation of $610,000. On behalf of Yan Qingxin and Zhang Qi, Liu Junguo has acknowledged the reparation to the court. Right now, the litigation has entered the last phase of post-judgment implementation.



In 2005, Yan Qingxin and Zhang Qi sued Zhang Hongbao, Zhou Yongjun, World Journal, Tsingdao Daily, China Daily, and Omintalk.com for defamation against these two sisters, i.e. Zhou Yongjun, in his investigation report on the case of Wang Bingzhang’s induced arrest, exposed Yan Qingxin and Zhang Qi’s involvement in the induced arrest of Wang Bingzhang, and the news agencies listed above immediately carried reports or pasted reports on this incident. Zhang Hongbao was targeted as a major defendant in this litigation because in Yan Qingxin’s view, Zhang Hongbao had supported Zhou Yongjun in the latter’s effort to find out the truth about Wang Bingzhang’s induced arrest.



At that time Zhang Hongbao was beset by a series of lawsuits, including the criminal case, civil case and labor indemnity case filed against him by He Nanfang, the civil case filed against him by Yan Qingxin, the civil case filed against him by Zhang Qi, the civil case filed against him by Liu Junguo, and the civil case filed against him by Ye Ning. Based on an overall strategic consideration and a careful weighing of pros and cons of these lawsuits, Zhang Hongbao decided to disentangle himself from the lawsuit launched by Yan Qingxin and Zhang Yi, so that Yan Qingxin, Zhang Qi, and Liu Junguo would have a direct confrontation with the news media. This move would help make the outlines of the case more clear and the judge would find it easier to reach a decision, conducive to a defeat of Yan Qingxin, Zhang Qi and Liu Junguo in their confrontation with the news media. In the meantime, Zhang Hongbao would be able to concentrate his efforts on the criminal case and civil case filed against Zhang by He Nanfang under the direction of CCP. Now it appears clear that Zhang Hongbao’s strategy of slipping out of a predicament like a cicada sloughing its skin did work well. The judge ruled that Liu Junguo’s case was a frivolous lawsuit, and Yan Qingxin and Zhang Qi were ordered to pay to China Daily the compensation for attorney fee, court cost and other expenses in the amount of $610,000. Including the payment to World Journal and Tsingdao Daily, the total indemnity was more than $1.8 million. This strategy in litigation resulted in a complete collapse of Yan Qingxin, Zhang Qi, and Liu Junguo. According to reliable information, because of the background of the current stockholders of World Journal and T singdao Daily, they gave up their claims of more than $1.2 millions against Yan Qingxin and Zhang Qi, contingent on Liu Junguo’s withdrawal of the lawsuit on behalf of Yan Qingxin and Zhang Qi. However, China Daily with Taiwan background was determined to fight to the end in its litigation with Yan Qingxin, Zhang Qi, and Liu Junguo. The appellate court finally ruled that Yan Qingxin and Zhang Qi pay to China Daily an amount of $610,000 in litigation expenses. On May 15, on behalf of Yan Qingxin and Zhang Qi, Liu Junguo acknowledged their indemnity to the court.



The end of this litigation signified a conclusion on the American side regarding the case of Wang Bingzhang’s induced arrest as well as a judgment on the American side regarding Yan Qingxin and Zhang Qi; at the same time, the result of this litigation demonstrated the equitability of the American judicial system, delivering a good lesson to Liu Junguo who have kept brandishing their banner of litigation flightily. Before an awarding ceremony in honor of Wang Bingzhang held by the magazine of Huanghua Garden, Liu Junguo had once threatened that he would take legal actions against whoever dared to say something unfavorable concerning Yan Qingxin and Zhang Qi. People who did not know Liu Junguo well were really taken aback by his threats. Over the past three years of litigation, however, especially during the lawsuit targeted against Zhang Hongbao and Zhonggong, Liu Junguo has suffered repeated setbacks: his application for restraining order was overruled by the judge; his claim was ruled as a frivolous one; he was forced to withdraw some lawsuits; and this time the court ruled that he has to pay the indemnity of $610,000. During the legal battle that has lasted for three years, either party has demonstrated its wisdom in strategies and tactics. On the one hand, Zhang Hongbao has displayed the qualities of composure, flexibility, well-orchestrated strategies, the ability to use other forces to attack the main enemy and to reap the benefits of play off one person against another; Yan Qingxin, Zhang Qi and Liu Junguo, on the other hand, has fought without a plan, antagonized people around them, alienated even their original friends, and finally found themselves completely isolated, mired in infamy and defeat in the end.



The case of Yan Qingxin and Liu Junguo versus Zhang Hongbao, a relatively more conspicuous case taking place in the circles of the overseas Chinese in recent years, has given us a good lesson, for it not only sheds some light on the background, strength, and wisdom of both parties in the litigation, but also provides an insight into the current operation and undercurrent regulations of the U.S. judiciary system and the advantages and power enjoyed by the American news media in the event of litigation.
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