Question
Is Jacob liable under the Partnership Act for George's negligent advice to Bronwyn? And what would he need to prove for the tort of negligence?
Is Jacob liable under thePartnership Actfor George's negligent advice to Bronwyn? And what would he need to prove for the tort of negligence?George and Jacob are partners in a superannuation advice practice known as "Super Men".Bronwyn, an enthusiastic supporter of alternative energy technology, sought advice about the financial benefits of investing some of her super funds in a wind farm project that was looking for investors.George advised her that in his view, the project was secure and that she would receive a 20% per annum return.Bronwyn invested a significant amount of her super money in the project.It never returned 20%, and eventually she lost most of her investment when the founders went missing.
George should have known that the returns would not exceed 5%, and he under-estimated the risk.Bronwyn seeks your advice about whether she should sue Jacob and George.
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