A is an engineer working in a project management in a merchant bank. His girlfriend, B is a town planner. They have been living together in a rented flat for five years. In late 2010, they decided to think about investing together as well as buying a house. Harry discussed this with his work mates and friends C and D who were in various investment divisions in the bank. C is a commercial lawyer and he told A that getting in the Sydney real estate market is the best investment around. D is a financial adviser and he agreed with C that real estate was generally best although he said that there had been rumours about Federal Capital Gains taxes being increased to a higher rate. A passed all this information to B who also told her mother Hilary.
A and B borrowed $650,000 from the bank and used this and their savings to buy property at Parramatta. They rented the property to some students from UWS and moved in with E in her home to save some extra money. E sold most of her bank shares and bought another property close to Parramatta which she rented to students from UWS as well. A, B and Hilary did not try to get any other financial advice before investing in real estate market.
In April 2012, the government of New South Wales announced a mini budget and imposed a new land tax on all investment properties. The property market in Sydney collapses and A, B and Hilary discover that their properties are now worth less than 80% of what they paid for it earlier in 2010. E is particularly upset as her shares would have maintained their value if she had not sold it to buy the investment property. As a result of the investment disaster E suffers severe stress leading to clinical depression. E is unable to work in her usual occupation again.
Advise A, B and E of any right they may have in this situation in the law of Negligence ONLY, giving full legal authority for your answers. Against whom would those rights, if any be exercised, and why?
I need this question examples to be done according to australian law.
moreover i dont know who is responsible for the clinical depression
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