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Jordan wants to invest in an investment property. Jordan has been banking with OFPL with his personal banker, who is the sole shareholder and director

Jordan wants to invest in an investment property. Jordan has been banking with OFPL with his personal banker, who is the sole shareholder and director of OFPL and works in the business for 20 years. Over the years, whenever a financial issue arose or he was considering making an investment, Jordan would phone Jean. Jean would then tell Jordan what needed to be done to either fix the financial problem or what the best investment was and how it should be financed. When Jordan told Jean about investing money in a property, Jean mentioned that another customer, Ken, had a block of four townhouses for sale in Brisbane, called Mojo Dojo Casa Houses, and Jean indicated that this would be an excellent investment. Jean told Jordan that OFPL would lend him (Jordan) the additional $1,000,000 needed to finance the purchase price of $3,000,000 and that there was no need to get any extra advice. Jordan thought that this all sounded like a good plan, so he entered into a contract to buy MDCH from Ken, which settled on 30 July 2023. MDCH is now registered in the name of Jordan, subject to a registered mortgage over the property in favour of OFPL to secure the $1,000,000 it loaned to Jordan. However, since then, Jordan has since discovered that the Mojo Dojo Casa Houses were actually valued at $2,500,000 at the time of Jordan's purchase and is currently valued at $1,500,000, Ken is Jeans de-facto partner of 10 years and the Mojo Dojo Casa Houses have significantly declined in value. This is because Ken also owns the large home next door to MDCH, which he converted into a low-budget backpackers immediately after he sold MDCH to Jordan.


The backpackers, known as Dreamhouse, has a 24hr check-in, and a rooftop bar and swimming pool which are open 24hrs, with non-stop parties every day. As part of the council approval to operate as a backpackers, the zoning of the entire street was changed from residential to commercial. Jean knew about these plans and the probable impact on the value of MDCH at the time that Jordan signed the contract to purchase it from Ken but did not say anything about this to Jordan. When Jean told Ken that Jordan had signed an offer to buy MDCH for $3,000,000, Ken was very surprised. Ken said to Jean that this was an incredible price given his (Ken's) plans to open up the backpackers next door, and that he didn't understand what was going on. Jean told Ken that he (Jean) said to Jordan, "Ken has lived next door for a long time and loves the area so has no plans to sell." Ken wondered what else Jean told or did not tell Jordan but decided not to raise it again.


What relevant equitable claims could Jordan bring arising from the circumstances and what relief may be available to him?

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