Print
this articleInformation Bulletin
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/party/2006/05/200605282136.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.