Wontok Enterprises Pty Ltd v Telstra Corporation Ltd [2022] NSWSC 506

Supreme Court New South Wales

Medium Neutral Citation: Wontok Enterprises Pty Ltd v Telstra Corporation Ltd [2022] NSWSC 506 Hearing dates: 22 April 2022 Date of orders: 28 April 2022 Decision date: 28 April 2022 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Defendant's Notice of Motion dismissed with costs Catchwords: COSTS – security for costs - sought in the order of $595,000 – whether reason to believe plaintiff unable to meet adverse costs order – whether "quantum of risk" warrants award of security Cases Cited: Cornelius v Global Medical Solutions Australia Pty Ltd; Farag v Global Medical Solutions Australia Pty Ltd [2014] NSWCA 65 Idoport Pty Ltd v National Australia Bank Ltd [2001] NSWSC 744 KDL Building Pty Ltd v Mount [2006] NSWSC 474 Warren Mitchell Pty Ltd v Australian Maritime Officers Union [1993] FCA 774 Category: Procedural rulings Parties: Wontok Enterprises Pty Limited (Plaintiff/Respondent) Telstra Corporation Limited (Defendant/Applicant) Representation: Counsel: J Burnett (Plaintiff/Respondent) J D Williams (Defendant/Applicant)

Solicitors: Bird & Bird (Plaintiff/Respondent) Gilbert + Tobin (Defendant/Applicant) File Number(s): 2021/259116

Judgment 1. In 2012 the plaintiff, Wontok Enterprises Pty Ltd, entered into an agreement with the defendant, Telstra Corporation Ltd, to license to Telstra antivirus and cyber-security software so that Telstra could provide that software to its customers for a fee. 2. Telstra terminated the agreement with effect on 31 March 2021. 3. Wontok claims that: 1. Telstra continued to let its customers use the software after March 2021; 2. Telstra did not, as it was required to do, advise Wontok that it should not provide ongoing support to those customers; and 3. Wontok, as it was obliged to do, continued to provide such support. 1. Wontok claims that Telstra owes it some $3 million in relation to that support. 2. Wontok commenced these proceedings in September 2021 seeking to recover that amount. 3. The proceedings have reached a stage where Wontok has, very recently, served its evidence in chief, being an affidavit of its director, Mr Bruce Perry. 4. Now, by Notice of Motion filed on 12 April 2022, Telstra seeks security for its costs of the proceedings in the sum of $595,000. Telstra first foreshadowed an application for security on 2 March 2022.