Ms. Bonn, worked as an accountant for a large firm -XTRA Accounting LLP. She was asked to give her professional opinion for the firm's client Mr. Slim wanted Ms. Bonn's professional opinion as to how he could reduce taxes on his foreign investments and properties in Spain and England. Ms. Bonn had not previously dealt with taxes in Argentina but figured that it was a commonwealth country so the taxes would be similar to Canada, a 25% tax rate over $50,000.00.

Ms. Bonn gave Mr. Slim a memo stating that the most he would have to pay in taxes is 25% on his properties in England. In this memo, Ms. Bonn urged him to sell his investments in the Spanish company Ola Foods. Ms. Smith had wanted to purchase Ola's stocks but the share price was $30.00 a share. If Mr. Slim sold his shares the share price would fall to $10.00. Mr. Slim sold his shares on the Ms. Bonn's advice and Ms. Bonn purchased 1000 shares at $10 a share.

A month later, Mr. Slim received a tax notice that he owed $55,000 for selling his Spanish investments and the properties had a tax rate of 52% not 25%. Mr. Slim was furious and spoke to a lawyer, Ms. Ellis, about a possible lawsuit against Ms. Bonn and her firm.

Mr. Slim wants to sue Ms. Bonn and her firm for the $55,000 tax bill, the money he lost selling his shares and for other costs totalling $150,000.00.

a) possible law suit in either torts/contract that Mr. Slim could raise is_________________________ (pick one) (2 marks)

b) Explain what Mr. Slim would need to prove one of the possible claims (5 marks)

c) Ms. Bonn finds out about the potential lawsuit against her and the her firm XTRA LPP. She decides to call up Ms. Ellis to find out what Mr. Slim discussed with her. Can Ms. Ellis discuss what she and Mr. Slim spoke about? Why or why not? _________________________ ( 3 marks)

d) Ms. Bonn has been an employee of Xtra LLP for 5 years. Mr. Slim can sue Xtra LLP for Ms. Bonn's actions as Xtra is ___________________ for the actions of their employees. (2 marks)