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Solution Library
Scenario Of Tort And Professional Negligence
Question
Pamela has recently won $150,000 in a television game show. She is also a member of the same tennis club as her accountant, Dennis. One day at the club she confided in Dennis that she was looking to invest her winnings. Dennis advised her to invest in a small widget making company saying that he has analyzed it and predicted that it had a prosperous future. He added, “Of course I should give you my usual spiel of what we accountants call ‘all care and no responsibility’ but don’t worry, I’ve had my eye on this company for a while and it’s definitely going places.” Not being an experienced investor in shares, Pamela follows Dennis’s advice and invests all of her winnings in the company. Unfortunately she finds that within three months the value of her investment has actually fallen to around $100,000. Apparently the company has had management issues for some time and its profits have fallen dramatically. In your own words, explain whether or not Pamela can sue Dennis for her loss.
Summary
The question belongs to Law and it discusses about a scenario where a person winning a lottery invests in a company upon taking the advice from an accountant friend. The shares of the company fall within 3 months. The person needs to be advised whether or not she can sue her friend.
Total Word Count 704
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