Edmond El Khoury v Denis Harsany & Anor; Joseph Taouk v Assure (NSW) Pty Ltd [2018] NSWSC 1774

Edmond El Khoury v Denis Harsany & Anor; Joseph Taouk v Assure (NSW) Pty Ltd [2018] NSWSC 1774

Mr Taouk is liable to Assure (NSW) Pty Ltd for $5,289,893.48 by virtue of guarantee and indemnity terms, which require payment for all losses, liabilities, costs, and expenses associated with default events, and not just compensatory common law damages; Mr Harsany and Mr Taouk are jointly and severally liable to Mr El Khoury for repayment of $200,000 under the Loan Agreement with interest at 2% simple per month from 27 July 2013; the Loan Agreement was supported by consideration upon release of funds, and unclear interest provisions do not provide for compounding.

Jurisdiction
Australia
Judgment Date
23 November 2018
Procedural Posture
Equity Expedition List / Determination of Quantum of Liability and Related Proceedings
Outcome
2016 proceedings: Quantum of liability determined at $5,289,893.48 against Mr Taouk in favour of Assure; 2018 proceedings: Liability of Mr Harsany and Mr Taouk to Mr El Khoury for $200,000 plus interest at 2% per month simple from 27 July 2013.
Legal Topics
['damages for Breach of Contract' 'guarantee and Indemnity' 'joint Venture Agreements' 'loan Agreement Enforcement' 'quantum Determination']
['contract' 'equity'] ['damages for Breach of Contract' 'guarantee and Indemnity' 'joint Venture Agreements' 'loan Agreement Enforcement' 'quantum Determination']

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Procedural Posture

Equity Expedition List / Determination of Quantum of Liability and Related Proceedings

Legal Issues

  1. 1 ['What is the quantum of liability of Mr Taouk to Assure (NSW) Pty Ltd for breach of agreement and guarantee and indemnity?' 'Are Mr Harsany and Mr Taouk liable as guarantors to Mr El Khoury under the $200,000 loan agreement?' 'Is the interest payable on the loan to be calculated as simple or compound interest?' 'Are co-guarantors entitled to contribution?']

Ratio Decidendi

Mr Taouk is liable to Assure (NSW) Pty Ltd for $5,289,893.48 by virtue of guarantee and indemnity terms, which require payment for all losses, liabilities, costs, and expenses associated with default events, and not just compensatory common law damages; Mr Harsany and Mr Taouk are jointly and severally liable to Mr El Khoury for repayment of $200,000 under the Loan Agreement with interest at 2% simple per month from 27 July 2013; the Loan Agreement was supported by consideration upon release of funds, and unclear interest provisions do not provide for compounding.

Court Disposition

2016 proceedings: Quantum of liability determined at $5,289,893.48 against Mr Taouk in favour of Assure; 2018 proceedings: Liability of Mr Harsany and Mr Taouk to Mr El Khoury for $200,000 plus interest at 2% per month simple from 27 July 2013.

Orders

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