Bea, Elle, and Kay share a flat at university. A few years after they qualify in their
Question:
Bea, Elle, and Kay share a flat at university.
A few years after they qualify in their various professions - Bea is a financial planner, Elle is an accountant, and Kay is a solicitor - they decide to set up an advisory service, using the name 'One Stop'.
They buy a suite of offices which they own jointly.
They share costs of building maintenance, IT services, and reception staff equally.
Sometimes they work on projects together, bill clients under the name 'One Stop' and share profits. Normally, however, they bill clients separately and meet their own costs.
Bea has been advising clients to invest in Kryptonia, a crypto-currency exchange, without disclosing the significant risks or telling Elle and Kay. Kryptonia has poor security and is hacked. Its investors lose all their money. Bea has also lost most of her wealth in the Kryptonia collapse.
Bea's clients want to hold Elle and Kay liable for Bea's negligent advice.
Explain whether a court is likely to find Elle and Kay liable for the losses caused by Bea's negligent advice.