Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you give me some advice about this question, thank you. Question One: 10 marks (750 words) Michelle is a marketing executive for an ASX

Can you give me some advice about this question, thank you.

image text in transcribedimage text in transcribed
Question One: 10 marks (750 words) Michelle is a marketing executive for an ASX listed company in Melbourne. After inheriting a large sum of money from her late uncle, Michelle decided to invest in real estate development. At a friend's birthday party at a venue on the Docklands, Michelle met Jason Phillips. After some discussion, Michelle discovers that Jason is a licensed property valuer. Knowing this, she asks for Jason's opinion on where she should buy property to develop. Jason is thrilled that someone wanted to discuss property and he tells Michelle about a \"great\" parcel of land on the outskirts of Wallan. 'It is prime for development,' he tells her. 'The area is growing fast, and being part of Melbourne's urban growth corridor, the population is expected to increase ve-fold. You would triple your investment by building some townhouses and a few commercial premises there.' Michelle had heard about the land in Wallan but had decided not to investigate further upon discovering that a quarry had been proposed on the adjacent land. 'I thought that a basalt quarry was approved for that area?\" she asked. 'Nobody wants to live next to the noise and dust of a quarry!' Jason wanted to impress Michelle with his expertise and boast his intimate knowledge of the local council. He tells her, 'a lot of people do not realise this, but I know that the council has actually rejected the proposed quarry. In fact, the council has rezoned that land for commercial development. It really is a prime real estate opportunity and you should buy it before someone else does.' Michelle is impressed by Jason's knowledge and condence and the next day she buys the land on the outskirts of Wallan for $5,000,000. She also hires a planning consultancy business to draw up the plans of her development and assist in applying for the required permits. The consultancy costs for $250,000. A few weeks later, Michelle discovers that Jason's advice was incorrect. At the time of his advice, the council had in fact decided not to rezone the adjacent land to be commercially zoned, but instead had approved the quarry to go ahead. To make things worse, the approved blast zone for the quarry covers part of Michelle's land, meaning that a large portion of her property is unusable and cannot be developed on. As a consequence, Michelle's property has now fallen in value by 75%. As a result of losing so much money, Michelle has become seriously depressed and started drinking heavily. Due to her alcoholism, Michelle lost her $500,000 per year marketing executive job and has spent $12,000 on rehabilitation. Michelle wishes to commence proceedings in negligence for her nancial and physical losses. Michelle has come to you for advice as to whether she has any cause of action against Jason. Required. Advise Michelle whether she would be successful in any claims against Jason, and if so, what remedies might be available to her

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematical Statistics With Applications In R

Authors: Chris P. Tsokos, K.M. Ramachandran

2nd Edition

124171133, 978-0124171138

Students also viewed these Law questions