Mary sought financial advice from EON Financial Services. She was provided with a written advice suggesting she invest in the Australian share market, and it recommended certain companies including Hunter Coal Ltd. Mary, who is not a risk-taker, decided not to invest in shares but rather to leave her money in a term deposit with the bank. She did, however, discuss the advice with her good friend, Paul. Paul, who had some $50,000 sitting in the bank, decided to invest in Hunter Coal Ltd. Hunter Coal Ltd was in financial difficulties but expected to be able to mine in the Hunter Valley and therefore trade out of those difficulties. Unfortunately for Paul, the Government refused a mining lease to that company so it was placed into liquidation, unable to repay its shareholders their investment.
Advise all parties as to whether a duty to exercise care was owed by him/her/them.