Brad had recently inherited a significant amount of money and was seeking an investment opportunity when he saw his local mini-mart advertised for sale in the window of a real estate agent. He immediately made an appointment to meet with the current owners and review their accounts.

When Brad met with the owners they were pleasant but not really forthcoming with any information. They just told him to speak to their accountant and said 'He will be able to answer all your questions'. So Brad met with the accountant and was reassured by the positive report he was given. The accountant told him (correctly) that the shop had experienced a steady increase in profit over the previous 5 years and the accountant further stated that he could 'see no reason why this would change in the near future'. However he also cautioned Brad that business was a 'fickle thing', and warned him that he was 'not prepared to forecast future growth'. He said he was 'just an accountant' not 'an expert in the supermarket business' and suggested that Brad seek independent advice from an expert in supermarket retailing before proceeding with the purchase.

But Brad did not heed the accountant's advice. He was so encouraged by what he had heard about the business and its constantly improving profitability that he decided there and then to invest in it, without any further delay. After purchasing and taking over the business all went well for a year or so, until a large (full service) Woolworths store opened directly across the road and Brad's business rapidly dropped off.

Brad is now facing financial ruin and can only hope to sell the mini-mart for its land value. He has recently discovered that the Council had approved the Woolworths development shortly prior to his purchase of the business and that the previous owners had heard rumours of this, which is why they had decided to sell. He would definitely not have gone ahead with his purchase of the business if he had been made aware that Woolworths would be opening a major new supermarket across the road. He suspects that, at the time he spoke to them, both the accountant and the agent were also probably aware that the Woolworths development had been approved by the Council and was, or was very likely to be, going ahead.

Advise Brad as to whether he can successfully make a claim for damages against either the vendors or the accountant for negligent misstatement.