2023 Question 2 — LawShortcut Independent Model Answer
Negligent Misstatement · Pure Economic Loss · Economic Torts
Scenario summary
ABC Ltd, a firm of professional financial advisers, tells Mr A that DEF Ltd carries no more than a “medium risk”. Acting on that advice, A puts €150,000 into DEF in 2022, despite widespread reporting of DEF's €1 million tax liability to the Revenue Commissioners.
In a separate strand, the Revenue had in 2021 secured a Mareva injunction over DEF's account at GHI Bank, freezing it. That order reached the branch manager at midday. An hour later, at 1 pm, the managing director of DEF, Mr B, turned to online banking to shift €1 million out of the company account and into his own, sidestepping the freeze. DEF is now insolvent.
Candidates are asked to advise Mr A and the Revenue Commissioners on their remedies in tort.
This is a LawShortcut scenario summary written in our own words. For the exact examined wording, use the official King’s Inns paper linked above.
What this model answer covers
Issues and structure addressed in the full LawShortcut model answer:
- 1. Mr A v ABC Ltd — Negligent Financial Advice
- 2. The Revenue Commissioners and the Diverted €1 Million
- 3. Revenue v GHI Bank
Read the complete LawShortcut model answer to this question — reading the question, issue spotting, the applicable law, application to the facts and conclusions — inside the King’s Inns Tort Model Answer Vault.
Part of the King’s Inns Tort Model Answer Vault — 30 independently authored model answers, 2020—2025.