Question
Russell is the general manager for Fast Campers Pty Ltd. Russell visits their external accountant's office [KPNG, a large accounting partnership with hundreds of staff]
Russell is the general manager for Fast Campers Pty Ltd. Russell visits their external accountant's office [KPNG, a large accounting partnership with hundreds of staff] to collect the payroll reconciliation and BAS for Fast Campers. The only work KPNG does for Fast Campers is their payroll reconciliation and BAS returns. While picking up the papers he chats with Nancy, the KPNG staff accountant that works on their BAS. Russell has been thinking of investing in Maxwell Gambling NSW P/L, a business that has recently opened, and he asks Nancy what she thinks. Nancy replies that gambling is on the increase and they "never lose" so she thinks it's a great investment and Russell should go ahead. Russell calls Maxwell Gambling to confirm he's investing and then walks around the corner to his bank and transfers $450,000 into Maxwell Gambling's bank account.
The next morning Russell is reading the newspaper paper and discovers that Maxwell Gambling P/L has gone into insolvency, has many millions of dollars in debts, and has no assets except for their bank account.
Question: Using an I.R.A.C. approach, discuss whether Russell might be successful in a claim again KPNG, or Nancy, to recover his losses.
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