Thepurpose of this blogis to help you understand and communicate the implications of the caseCarmody v Priestley & Morris Perth Pty Ltd(2005) 30 WAR 318on professionals in terms of professional negligence, specifically focusing on theSCOPEof aprofessional's duty of careowed to their clients. The case highlights the importance of understanding when an accountant or other professional adviser might be required to offer advice or give a warning about a risk at their own initiative, even if the client has not specifically asked about it (see paragraph [176] and other paragraphs provided in the assignment document from the case).

Both tasks (the Blog ) should concentrate on the implications for professionals (such as accountants and tax advisors) fromCarmody v Priestley & Morris Perth Pty Ltd(2005) 30 WAR 318 as they relate to thescope of a duty of careowed by such professionals to their clients:

Blog post: engaging and informative blog post explaining the implications of the case for accountants working on tax and related matters. Your writing should be clear and well-structured, tailored for a business audience. Remember to cite and reference sources accurately using AGLC 4 referencing.

REFER TO THESE LEGAL BLOG WEBSITES FOR STRUCTUING AND SUBHEADING AND COME UP WITH GOOD/CATCHY RELATED TITLE:

Example 1:Page, James, 'Dude, Where's My Indemnity? Claims Made and (Not) Notified | Moray & Agnew',Moray & Agnew Lawyershttps://www.moray.com.au/insights-media-events/publications/insurance-directions/july-2021/dude-where-s-my-indemnity-claims-made-and-not-notified> which communicates the implications of the caseP & S Kauter Investments Pty Ltd v Arch Underwriting at Lloyds Ltd[2021] NSWCA 136 to its target audience.

Example 2:'Blanket Notification - Is Bare-Bones Sufficient or Is Something More Required?',Chamberlains.(22 July 2021) https://chamberlains.com.au/blanket-notification-is-bare-bones-sufficient-or-is-something-more-required/> communicates the implications of theP & S Kauter Investments Pty Ltd v Arch Underwriting at Lloyds Ltd[2021] NSWCA 136 to itstarget audienceby focusing on thekey aspects of the casethat may impact their work.

BEFORE BEGINNING PLEASE COME UP WITH A TITLE FOR THE BLOG grabs the attentionof its readers with acatchy title, whichposes a question, sparking curiosity and setting the stage for a detailed analysis of thecase, itscontext, and itspotential impact on the audience's professional work.

AS THIS IS A BLOG PLEASE USE SUBHEADINGS FOR EACH SECTION : The blog post isstructured clearly, with headings that divide the content into manageable sections, allowing readers to follow the narrative easily.

ALSO AT THE END DISCUSS IMPLICATIONS FOR THE READERS THAT IS ACCOUNTANTS.implications for professionals (such as accountants and tax advisors) fromCarmody v Priestley & Morris Perth Pty Ltd(2005) 30 WAR 318 as they relate to thescope of a duty of careowed by such professionals to their clients:

PLEASE ALSO COMPARE WITH 1-2 OTHER CASES.THIS WILL BE FOUND IN IMAGES BELOW.

Do NOT discuss other issues likebreach of duty, causation and duty more broadly, unless and to the extent necessary (if at all) to explainthe central scope of the duty of careissue. The focus is on scope of a professional's duty of care, with that case acting as precedent for future situations involving applicable fact scenarios.

Target Audience and Engagement

• Your target audience for the blog and are professionals working in tax and related matters, specifically accountants and other advisers. Tailor the language and style to engage a business audience, making it accessible to non-legal professionals.
• Ensure the content is engaging, interesting, and accessible to non-legal audiences. Clearly explain the legal concepts and principles relevant to the case study. Use simple language and avoid jargon to make the content understandable for non-legal professionals in the field of your target audience. Keep the tone lively and use engaging Titles and Headings (see examples like "Dude Where's my Indemnity" below) and other engaging visuals, (or audiovisual elements for the ).

Structure

• Blog: Present a well-structured, logically organized blog post with clear headings and subheadings.Target Audience and Engagement
• Your target audience for both the blog are professionals working in tax and related matters, specifically accountants and other advisers. Tailor the language and style to engage a business audience, making it accessible to non-legal professionals.
• Ensure the content is engaging, interesting, and accessible to non-legal audiences. Clearly explain the legal concepts and principles relevant to the case study. Use simple language and avoid jargon to make the content understandable for non-legal professionals in the field of your target audience. Keep the tone lively and use engaging Titles and Headings (see examples like "Dude Where's my Indemnity" below) and other engaging visuals, (or audiovisual elements for the ).

Research and Referencing

• There are marks for both research and referencing. Original research may include cases, texts, journal articles, news reports citing or cited by the case, or otherwise relevant material (in instance a comparison case). Make sure to accurately cite and reference sources using AGLC 4 referencing with endnotes in the blog and say a final slide or final visual in the vlog. Be consistent and thorough in your citations (do not address any legislation).

For full info refer to the images below.Images also include case extracts of Carmody.

Full case can be found on the jade website : BarNet Jade - Find recent Australian legal decisions, judgments, case summaries for legal professionals (Judgments And Decisions Enhanced)

Link to medium neutral report with citation is Carmody v Priestley & Moms Perth Pty Lto 2005| WASC 120 engagement letter was expressed in sufficiently view and, on my earlier finding, a competent general terms to allow for advice to be given on an provider of accounting services would have known ad hoc basis from time to time in which event the that there was a risk of liability arising. nature of the task and related circumstances would have a bearing upon the scope of the duty of care 180 If, in this hypothetical situation, Mr Randall or and the question of whether the duty of care had any other accountant in the same position felt that been breached. I am of the view, having regard to he was not in a position to give an answer the decided cases, that in some circumstances an immediately because he had to check the structure accountant or other professional adviser might be and relationship of the companies in question, then required to offer advice or give some warning it seems to me that the duty of care arising from about a risk at his own instigation, even though a the client's request for a considered opinion, specific question about the matter of concem had required him to express no opinion until such time not been put to the adviser by the client. as he had the necessary information before him, and to wam the client against proceeding further 177 I am able to find as a fact that Mr Randall was until he was in a position to express an opinion. not given any prior warning and did not have any prior knowledge at the time of the subject 182 I am of the view (and so find) that Mr Randall telephone call that Mr Carmody, on behalf of the did not refer to any reason why the purchase plaintiffs, would seek some advice from him as to should not be proceeded with and did not wam the wisdom of proceeding with the proposed against taking any step upon the basis that he was purchase of the Price Street property. not in a position to express a concluded view until Nonetheless, bearing in mind the practice that had further information was brought before him. Thus, grown up between them of communicating by in effect, I am satisfied on the balance of telephone, I am of the view that, notwithstanding probabilities that Mr Randall indicated (and by the absence of any prior instructions, the implication so advised) that it was safe to proceed circumstances were such that Mr Randall must as there was not likely to be any adverse have understood that he was being asked for consequences. There is no suggestion in any of something more than a kerb stone or off the cuff the evidence that either party to the telephone opinion. He was being asked for considered advice conversation referred expressly to the deemed as to whether there was any reason which might dividend issue and I therefore have no difficulty in weigh against Mr Carmody proceeding with the finding that nothing was said about that matter. proposed transaction and with a real likelihood that his advice would be acted upon. 187 In essence, the question that falls to be decided is whether, in the circumstances of the 178 Thus, to my mind, Mr Randall was subject to a actual case as I have found them to be, Mr Randall duty to ensure that loss was not caused to any of was obliged to draw upon his own knowledge of the individuals or entities within the Carmody the plaintiffs' affairs and offer advice at his own family circle who might be adversely affected by a instigation in the form of a warning not to proceed lack of care in the giving of the advice...... further for the time being because there was or might be an adverse tax implication because any 179 It follows from this view of the matter that if by funds advanced by Holdings (as the likely source chance (and I am now speaking hypothetically) Mr of funds) to Maucarmod (which was not usually in Carmody had conveyed to Mr Randall all the a position to provide the purchase price from its information comprising the plaintiffs' par 14 own resources) would probably be characterised telephone call allegation and then, drawing upon as a deemed dividend. some reading of his own in the newspapers or otherwise, proceeded to ask Mr Randall 189 To my mind, when one draws together all the specifically whether funds provided by Holdings to relevant evidentiary matters, it must follow that in Maucarmod would attract a tax liability as a the particular circumstances of this case Mr deemed dividend, bearing in mind that Maucarmod Randall was subject to a duty to offer advice at his was a shareholder of Holdings, there can be little own instigation bearing upon any aspect of the doubt that an answer in the negative would have to proposed transaction which might have an adverse be regarded as negligent in the circumstances. In tax implication. such a case Mr Randall would have been possessed of sufficient information to express aMemo To: Graduate Accountant From: Nick Voleur Date: Monday 17 April 2023 Re: Blog and Video for our Intranet Alerting to Possible Implications from Carmody v Priestley & Morris Parth Ply Lid (2005) 30 WAR 318. Our Director of Legal, Bernard White, has alerted us to a case that may have implications for our firm, including our tax advisory. Bernard has alerted us to the development with his trademark timeliness, roughly 18 years after the case was handed down claiming he was busy working on his GST relum in the meantime. On the plus side we may have some openings in legal in the future. As part of your ongoing development as an accounting graduate at NV you have been tasked with preparing a blog post and a vlog presentation on the implications for the lax advisory side of our business arising from the case of Carmody v Priestley & Morris Perth Ply Lto (2005) 30 WAR 318. The purpose of this assessment is to help you apply relevant legal concepts and principles to a real-life case study, and to communicate your analysis effectively in both written and oral form using clear, concise, and appropriate language, in an engaging, attention- grabbing manner to ensure everyone in our firm is aware of its implications. From what I know this case involved an accountancy found negligent for tax advice (or perhaps lack thereof) given outside the scope of their client's retainer!!! These lawyers... they think they're Denny Crane! I continue, at NV we seek to make money and not pay for some silk's new Bentley. For the blog post (800 words excluding endnotes), we would like you to clearly explain the implications from the case for our accountants working on tax and related matters considering the legal concepts relating to the scope of a duty of care owed by professionals to clients (including for advice provided beyond their retainer). Some of our staff are a little lackluster, so the more engaging the better.Bertie Wooster Senior Partner. File Note from Bernard, Undated, Unfinished. We have some information below from Bernard but have not yet checked it for accuracy: "The plaintiff, Mr Carmody, was a property developer who engaged the services of the defendant accounting firm, Priestley & Morris, for tax advice. The scope of the retainer was limited to providing advice on specific tax issues related to Mr Carmody's property development projects. However, over time, the relationship between the parties developed such that the accounting firm began providing more general tax advice to Mr Carmody, including advice on tax minimisation strategies. One such strategy involved the creation of a family trust, which the accounting firm recommended to Mr Carmody. The trust was subsequently found to be..." Bernard's summary ended there....Link to medium neutral report with citation is Carmody v Priestley & Morris Perth Pty Lid [2005] WASC 120 Case Extracts in the decided cases that in these circumstances 96 However, although the contract of retainer will the defendants were subject to a duty of care be an important indicium of the nature of the arising concurrently in contract and in tort al relationship which gives rise to the common law common law in dealing with any maller falling duty of care, it will not chart exclusively the within the range of services generally provided that parameters of that duly, for it has been held in required specific action or a considered response. some cases that the duty of care may require the laking of positive sleps beyond the specifically 118 I am of the view, in general terms, that in agreed professional task or function where the circumstances where Mr Randall or his colleagues steps in question are necessary to avoid a real and from the firm were performing well defined tasks foreseeable risk of economic loss being sustained pursuant to a well defined pattern of performance by the client: Waimond Ply Lid v Byrne (1989) 18 such as the preparation of financial statements, or NSWLR 642; Dalleagles Pty Lid v Australian the provision of advice in response to a specific Securities Commission (1981) 4 WAR 325 at request such as the availability of a tax deduction 332. in respect of some item of expenditure, then the nature of the contractual relationship between the 100 Until recently, the decided cases suggested parties would require that the defendant firm that where the loss is purely economic loss, it is proller any advice reasonably necessary in order necessary to establish that a relationship of to protect the client's interests in regard to the proximity existed between the claimant and the maller in hand whether expressly requested or not. professional person arising from known reliance on I find support for this in the decided cases advice or the assumption of responsibility by one mentioned earlier including the Tip Top Dry party to the other. This must now be read subject Cleaners case (supra). to later decisions of the High Court which suggest that the notion of proximity in addition to 118 However, at the same time, I am conscious, foreseeability is of limited use. The circumstances having regard to the decided cases, and especially that call a duty of care into existence will arguably The Midland Bank Trust case (supra) and Mohr v be determined by reference to various discrele Cleaver (supra), that different considerations calegories of liability apparent in the previously might apply where the client raised a new matter in decided cases. circumstances of urgency and without himself defining to some extent the nature of the advice 101 I pause to say that in the present case there is being sought. In other words, I give weight to the no need to explore issues of this kind in depth, for notion that unless special arrangements are made the decided cases clearly show that the there is no such thing as a general retainer and the relationship of accountant and client gives rise to a nature of the services to be provided and the scope duly of care, and this was not seriously contested of the related duly of care will depend upon the by the defendants. The central issue concerned circumstances in which the advice is sought An the nature of the advice sought and the scope of accountant cannol be expected at a moment's the duty of care, if any, in the circumstances of the nolice to address every conceivable matter that case. might impact adversely upon his client's business and, in any event, the client might not be prepared The nature of the retainer to pay for advice bearing upon possibilities that were of minor importance or too far fetched. 113 The ongoing contractual relationship between the parties undoubtedly gave rise to a situation in 174 In the course of earlier discussion I concluded which Mr Randall and his colleagues at the that as al 23 February 2000 there was an ongoing accounting firm assumed responsibility for contractual relationship between the parties of the allending to the mallers just described [preparation kind contended for by the plaintiffs. The so-called of annual returns: provision of general accounting engagement leller dated 16 February 2000 was an advice and services as requested from time to lime operative and important point of reference in etc] and responding to requests for advice as to the determining the nature of the services to be lax implications of various mallers. It was known to performed and the scope of the duly of care in the defendants that the plaintills relied upon their circumstances where the client was accustomed to advisers and were generally inclined to act upon seek advice by phone and was known to rely upon the advice provided. Il follows from the reasoning his accountant's advice. I noted that the LAWS2014/BLV 202 Tort Liability for Bund Curtin Parth, Curtin Mauritius and QUA Samestar 2, 2:123 Copyright Curtin Univerity Page B