KUALA LUMPUR (June 9): The High Court has dismissed the application by Zaid Ibrahim & Co to strike out the lawsuit filed against the legal firm by its founder Datuk Mohd Zaid Ibrahim.

At the same time, the court also disallowed the former de-facto law minister's application for an interim injunction to bar the legal firm from using his name until the matter is disposed of by the court.

In the judgment released via email and sighted by The Edge, Judge Datuk Ahmad Bache said that the matter will now go to full trial. He set Aug 17 for case management.

Zaid had filed the suit to stop the legal firm from using his name, following the termination of his chairmanship after a mere nine days last November.

He accused the firm of misrepresenting in its practice by continuing to use his name, adding that the wrongful use of his name deprived him of using his own name to set up his own law firm, after leaving the firm in 2008 to become a minister.

The firm, in its defence and striking out application, claimed that the former Kota Bharu member of Parliament had compulsorily sold his stake in the firm for almost RM26 million, when he was appointed a minister in Tun Abdullah Ahmad Badawi's Cabinet in 2008.

Subsequently, after the filing and exchange of affidavits relating to the suit, the legal firm maintained that Zaid had relinquished all his stake in the firm, while Zaid claimed he still had a remaining 5% stake in the firm.

In his judgment today, Justice Ahmad said he was dismissing the striking out application because the issues in the case are not something “plain and obvious or a simple and straightforward matter”, which can be disposed of summarily 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 between them. This is not a fit and proper case to dispose summarily based on the pleadings and affidavit evidence alone. Hence a trial should be conducted, whereby witnesses will be called to give viva voice evidence. They can be examined, cross examined and re-examined,” he said.

As for the injunction sought by Zaid to disallow the firm from using the name “Zaid Ibrahim & Co”, the judge said he disallowed it as "it will affect the livelihood of some 250 individuals working with the firm and cause huge potential losses."

He added: “The injunction if granted, would also have an adverse impact on the anchor firm Zico Law, an ASEAN network of law firms, apart from the defendant (Zaid Ibrahim & Co) itself, who is also the largest law firm in Malaysia.

“The defendant being the largest law firm in Malaysia, also at any given time holds large sum of money, as stakeholders as part of its services, including the sale of the infamous “Equanimity” yacht.  Such is the level of confidence given to the firm/defendant that if injunction is granted, there will be huge potential loses to the firm monetarily and to its goodwill and reputation, which the plaintiff would not be able to compensate.”

Justice Ahmad also said that Zaid never provided evidence that he would be facing any difficulty to obtain work if he is unable to use the name “Zaid Ibrahim & Co.”

“In fact, there is no evidence adduced by Zaid of taking any steps to start a law firm. Zaid also did not display any urgency in restraining the defendant/the firm from using his name, as he only filed this action recently, after sitting on it for a long period,” he said.

In an immediate response, the firm said: "We welcome the court’s ruling to dismiss the plaintiff’s application for an interim injunction against our firm using our name 'Zaid Ibrahim & Co'. The court has ruled that we are allowed to continue to use our firm’s name."

In a press statememt, the firm also claimed that Zaid's action against its right to use the name is without merit and basis of law.

"We have never disputed the plaintiff’s right to set up his own law firm with his own name, under a different style," it said.

Zaid was represented by a team of lawyers led by Datuk Malik Imtiaz Sarwar, while former attorney-general Tan Sri Tommy Thomas appeared for Zaid Ibrahim & Co.