INSTRUCTIONS TO STUDENTS

Question $1$

The answer to this hypothetical question should be written under the ILAC framework : Issues, Law, Application, and Conclusion.

You are required to identify legal issues, state relevant legal principles, and apply the relevant law $($sections of legislation and case law$)$ in order to reach a conclusion for the client. You are asked to advise parties, including possible remedies available based on the facts of the hypothetical scenario.

DO NOT write a detailed explanation of the legal rules in case law or sections of legislation under the $$Law$$ heading. Please provide only the $$names of case law and$/$or sections of legislation$$ under the $$Law$$ heading of ILAC.

In conclusion, mention the name of the court or tribunal hearing the case, what the court$/$tribunal will decide, what remedies are available to the plaintiff, and the time limit for filing a case. Please provide one Conclusion for both Parts $($a$)$ and $($b$)$ at the end of the ILAC answer.

Please also read the Instructions in 'Assignment Task Details' and Marking Criteria under the Assessment tab.

Hypothetical Question

Marco recently retired from his teaching career. He receives a $$450,000$ gratuity from the Department of Education for his $30$ years of service as a school teacher.

Marco has not invested in property development in his lifetime, so he is interested in investing $$450,000$ in real estate. Marco meets with his financial advisor, Andrew, and asks him for advice on investing in real estate. Andrew has prepared Marco's annual income tax returns for the past $10$ years and has a good understanding of Marco's financial assets. Andrew proposes to Marco to invest in a residential apartment development site in the Torquay suburb of Hervey Bay, Qld$.$ Andrew assures Marco that if he invests $$450,000$ in "Land Mark Property Development Pty Ltd$."($Land Mark$),$ he will triple his investment in six months.

Andrew tells Marco that he should conduct a due diligence review of Land Mark before making any investment recommendations. It will take him approximately one month to complete the due diligence report. Marco did not agree to wait a month for this, and he advised Andrew to complete the due diligence review in two weeks. Andrew charges a fee of $$10,000$ for preparing the due diligence report.

Andrew completed a due diligence review of Land Mark Property Development's financial statements and advised Marco that it was a successful company and that he should invest money in it as soon as possible. But unfortunately, Andrew misread the Land Mark's financial statements and did not discover that it was already a bankrupt company. Marco invests his money and Land Mark immediately goes into liquidation and Marco loses $$450,000.$

Through social media, Marco discovers that many financial advisors were aware of Land Mark's poor financial condition and that several financial and real estate magazines had published warnings that the company was in financial trouble.

The whole affair has caused Marco to suffer severe stress and depression. So$,$ unfortunately, he has developed a drinking problem, which he estimates has cost him $$20,000.$

$($a$)$ Discuss whether Marco can claim investment losses and alcohol addiction damages against Andrew. Explain your answer fully with reference to appropriate case law and relevant sections of the Civil Liability Act $2003($Qld$)$ and the Australian Consumer Law $($ACL$).$

$($b$)$ Can Andrew raise any defences to an action initiated by Marco? Explain your answer fully with reference to appropriate case law and relevant sections of the Civil Liability Act $2003($Qld$).$

$($Do not discuss liability under contract law$).$

Hi everyone

I hope that all of you are answering Assignment $2$ these days.

I have discussed all the legislation and case law required for A $2$ assignment in Tort Law $1$ and $2$ and ACL lecture slides and Workshop Answer Guides.

When you write the Application of Law part of ILAC, you should refer to the Civil Liability Act and ACL sections as well as the case law related to those legal rules. Please follow Model ILAC Answer Guides and Workshop Answer Guides when writing the Application of Law.