Urgent Tort Question (1 Viewer)

[tempco]

Urgh, got a law exam tomorrow... too late to email the lecturer now.

Basically, in the tort of negligence, you must show that there is a duty of care owed to the part claiming for damages. So, consider this example:

Robyn is a licensed real estate agent and is drinking in a hotel with some friends. She is approached by Fred, who knows her occupation, and he says, "I am thinking of buying that property, 'The Overlook'. What do you think of it?"

Robyn, trying to impress her friends, says: "That property is very good buying at that price. You will double your money in six months."

Acting on this, Fred buys the property. In fact at the time of purchase, the Water Board has decided to build a sewerage treatment works next door. The property falls substantially in value.

Fred wants to sue Robyn for the anticipated loss in profit and the fall in value. Advise him. Would your answer differ if:

a. the advice had been given in Robyn's office?

b. Robyn had been paid a commission by Fred?

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So basically, I'm not sure as to whether or not Robyn owes a duty of care towards Fred. Yes, the circumstances were unprofessional, but Fred had relied on Robyn's advice, as a skilled professional, for that purchase.

I'm not too worried about whether or not Robyn was negligent, since the damages were pretty much unforeseeable since the decision to build the sewerage treatment plant occured without Robyn knowing.

Any help appreciated!

 

[Rorix]

See Tepko v Water Board.

 

[santaslayer]

You have uni already???

 

[MaryJane]

Summer school probably, seeing they have an exam.

You could probably argue that it was reasonable foreseeable that Fred would rely on Robyn's advice, as he knew she was a real estate agent.... Not sure though, its been over a year since I did tort!

 

[Frigid]

bah, humbug, torts.

got the marks, then memory-flush

 

[tempco]

Muahaha, it didn't pop up in the exam.

Yes, it's summer school. Thanks for the help anyway.

 

[mr EaZy]

i didnt do formal torts but i know that she does have a duty of care

this duty of care comes with being accredited with a professional body- such as the law soc or the one for architects and i think there's one for real estate agents too.

you simply cant give advice irresponsibly and it doesnt matter whether or not you are being paid or whether or not it was conducted in the office

another example is that your an accountant for a mining corp and at a dinner party someone has an interest in buying shares in that corp- your position in that company puts you in a very good position to judge the value of those shares- and if you breach your duty of care - which involves being truthful and someone suffers losses- like the loss of some savings then those damages (loss of savings ) can be recovered.