Guildford Montessori Kindergarten Pty Ltd v Wehbe [2025] NSWSC 145

Guildford Montessori Kindergarten Pty Ltd v Wehbe [2025] NSWSC 145

Orders for security for costs were made because credible evidence showed the plaintiff companies would be unable to pay an adverse costs order if ordered, as their business assets were mainly income stream/goodwill, not promptly realisable, and only a few entities had material assets. Disclosure of documents in certain revised categories was ordered, as justice required the defendants to have access to central documents relevant to transactions and authorisation issues, including in exceptional circumstances given document control and volume of claims. Broader or verified discovery and production of already-disclosed documents was not generally ordered; disclosure was fashioned in a...

Parties
First Plaintiff: Guildford Montessori Childcare Pty Ltd ACN 120 987 028; Second Plaintiff: Rose-Hill Montessori Kindergarten Pty Ltd ACN 130 543 574; Third Plaintiff: Eltelegraph Newspaper Pty Limited ACN 142 631 285; Fourth Plaintiff: Alanwar Newspaper Pty Limited ACN 073 059 159; Fifth Plaintiff: Anoujoum Magazine Pty Limited ACN 135 682 521; Sixth Plaintiff: Access to Care Pty Limited ACN 615 856 365; Seventh Plaintiff: Future Academy Pty Limited ACN 135 043 113; Eighth Plaintiff: Wehbe Investments Pty Ltd ACN 065 783 968; First Defendant: Remy Wehbe; Second Defendant: Linda Kafrouni; Third Defendant: Kevin Wehbe; Fourth Defendant: Karl Wehbe; Fifth Defendant: Remy Wehbe Investments Pty Limited ACN 136 262 247; Sixth Defendant: Advanced Training Services Pty Ltd ACN 604 847 681; Eighth Defendant: Taghrid Choukair; Ninth Defendant: Prestige Training Group Pty Ltd ACN 602 416 722
Jurisdiction
Australia
Judgment Date
05 March 2025
Procedural Posture
Civil Interlocutory Applications / Interlocutory/procedural – Orders for Disclosure and Security for Costs
Outcome
Orders made granting security for costs (in the amount of $725,000) and specific disclosure of revised categories of documents; costs of applications mostly to be borne by each party; parties directed to bring orders into short form.
Legal Topics
Disclosure of Documents, Security for Costs, Costs, Case Management, Obligations of Parties and Practitioners
Civil Procedure Equity Disclosure of Documents Security for Costs Costs Case Management Obligations of Parties and Practitioners

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Parties

Guildford Montessori Childcare Pty Ltd ACN 120 987 028

First Plaintiff

Rose-Hill Montessori Kindergarten Pty Ltd ACN 130 543 574

Second Plaintiff

Eltelegraph Newspaper Pty Limited ACN 142 631 285

Third Plaintiff

Alanwar Newspaper Pty Limited ACN 073 059 159

Fourth Plaintiff

Anoujoum Magazine Pty Limited ACN 135 682 521

Fifth Plaintiff

Access to Care Pty Limited ACN 615 856 365

Sixth Plaintiff

Future Academy Pty Limited ACN 135 043 113

Seventh Plaintiff

Wehbe Investments Pty Ltd ACN 065 783 968

Eighth Plaintiff

Remy Wehbe

First Defendant

Linda Kafrouni

Second Defendant

Kevin Wehbe

Third Defendant

Karl Wehbe

Fourth Defendant

Remy Wehbe Investments Pty Limited ACN 136 262 247

Fifth Defendant

Advanced Training Services Pty Ltd ACN 604 847 681

Sixth Defendant

Taghrid Choukair

Eighth Defendant

Prestige Training Group Pty Ltd ACN 602 416 722

Ninth Defendant

Procedural Posture

Civil Interlocutory Applications / Interlocutory/procedural – Orders for Disclosure and Security for Costs

Legal Issues

  1. 1 Whether security for costs should be ordered against plaintiff companies under the Corporations Act 2001 (Cth) and/or Uniform Civil Procedure Rules 2005 (NSW)
  2. 2 Whether and to what extent disclosure of documents and verification should be ordered prior to service of defendants' evidence
  3. 3 Whether categories of documents subject to discovery were appropriate and relevant to facts in issue

Ratio Decidendi

Orders for security for costs were made because credible evidence showed the plaintiff companies would be unable to pay an adverse costs order if ordered, as their business assets were mainly income stream/goodwill, not promptly realisable, and only a few entities had material assets. Disclosure of documents in certain revised categories was ordered, as justice required the defendants to have access to central documents relevant to transactions and authorisation issues, including in exceptional circumstances given document control and volume of claims. Broader or verified discovery and production of already-disclosed documents was not generally ordered; disclosure was fashioned in a...

Court Disposition

Orders made granting security for costs (in the amount of $725,000) and specific disclosure of revised categories of documents; costs of applications mostly to be borne by each party; parties directed to bring orders into short form.

Orders

  • Plaintiffs required to provide security for costs in favour of the defendants in the amount of $725,000, by way of bank guarantee unless otherwise agreed.
  • Disclosure ordered for certain revised categories of documents (case-managed, mainly in relation to transactions, authorisation and company operations).