UK business law

QUESTION 8 Argon Ltd hired a law firm, Bounty LLP (Bounty), to act on behalf of Argon Ltd in completing several high-stakes mergers and acquisitions. The agreed fee for doing this work was 2 million. The work was completed by Ceri, a senior partner in Bounty. The work was stressful and complex. Ceri worked long hours under time pressure and without sleep to fulfil the instructions from Argon Ltd. Bounty agreed with Ceri that when Argon Ltd settled the fee account she would be paid a bonus commission of 1 million for her work and would be given extra time off to recover from work-related stress. Argon Ltd failed to settle the fee account. Bounty decided to obtain court orders against Argon Ltd freezing 2 million of funds belonging to Argon Ltd. These freezing orders would prevent Argon Ltd from being able to dispose of any of its bank accounts without settling the fee owed to Bounty. The work involved in filing the legal claim and securing the freezing orders against Argon Ltd was all done by Ceri. This caseload further added to her work-related stress. Argon Ltd had a cash balance of 3 million in accounts with Dominion Bank Plc (Dominion). Ceri successfully obtained the freezing orders against Argon Ltd and served them on Dominion. At Ceri's insistence, Dominion sent a letter to Bounty affirming that they would abide by the freezing orders and undertaking not to allow Argon Ltd to withdraw any funds. Dominion also agreed that they would make arrangments to ensure the fees owing to Bounty were paid out. Meanwhile Argon Ltd quickly used its online banking facility to transfer the sum of 3 million immediately out of the Dominion accounts. Argon Ltd used the money to purchase gold bars, which it secured in a vault in an unknown offshore location. On hearing that she would not be paid in relation to the Argon portfolio and all her work was in vain, Ceri suffered a serious nervous breakdown and became permanently unable to work. Ceri now wishes to sue Dominion Bank Plc in the tort of negligence, based on three claims. Advice Dominion Bank Plc on its liability in respect of these claims: Negligently failing to ensure that Argon Ltd would not be able to retreive the cash from its accounts through online facilities. [10 marks) Negligently causing her to suffer work-related stress and a subsequent nervous breakdown [5 marks] Negligently causing the financial loss of her law career which would have earned her an estimated 50 million over the next 25 years. [5 marks) . . QUESTION 8 Argon Ltd hired a law firm, Bounty LLP (Bounty), to act on behalf of Argon Ltd in completing several high-stakes mergers and acquisitions. The agreed fee for doing this work was 2 million. The work was completed by Ceri, a senior partner in Bounty. The work was stressful and complex. Ceri worked long hours under time pressure and without sleep to fulfil the instructions from Argon Ltd. Bounty agreed with Ceri that when Argon Ltd settled the fee account she would be paid a bonus commission of 1 million for her work and would be given extra time off to recover from work-related stress. Argon Ltd failed to settle the fee account. Bounty decided to obtain court orders against Argon Ltd freezing 2 million of funds belonging to Argon Ltd. These freezing orders would prevent Argon Ltd from being able to dispose of any of its bank accounts without settling the fee owed to Bounty. The work involved in filing the legal claim and securing the freezing orders against Argon Ltd was all done by Ceri. This caseload further added to her work-related stress. Argon Ltd had a cash balance of 3 million in accounts with Dominion Bank Plc (Dominion). Ceri successfully obtained the freezing orders against Argon Ltd and served them on Dominion. At Ceri's insistence, Dominion sent a letter to Bounty affirming that they would abide by the freezing orders and undertaking not to allow Argon Ltd to withdraw any funds. Dominion also agreed that they would make arrangments to ensure the fees owing to Bounty were paid out. Meanwhile Argon Ltd quickly used its online banking facility to transfer the sum of 3 million immediately out of the Dominion accounts. Argon Ltd used the money to purchase gold bars, which it secured in a vault in an unknown offshore location. On hearing that she would not be paid in relation to the Argon portfolio and all her work was in vain, Ceri suffered a serious nervous breakdown and became permanently unable to work. Ceri now wishes to sue Dominion Bank Plc in the tort of negligence, based on three claims. Advice Dominion Bank Plc on its liability in respect of these claims: Negligently failing to ensure that Argon Ltd would not be able to retreive the cash from its accounts through online facilities. [10 marks) Negligently causing her to suffer work-related stress and a subsequent nervous breakdown [5 marks] Negligently causing the financial loss of her law career which would have earned her an estimated 50 million over the next 25 years. [5 marks)