A South Australian accountant’s advice to invest in failed agriculture investment schemes has cost him more than $400,000.
The Supreme Court of South Australia ordered David Abram to pay damages of $412,242, plus costs, to a client after an appeal.
Abram’s client, Gary Jackson, had initially been awarded damages of $288,240 and costs up until 4 July 2013, with Jackson being ordered to pay costs for the remainder of the proceedings up to 24 September 2014, on the grounds that he had failed to accept a filed offer from the respondents of 19 June 2013 to consent to judgment in the sum of $257,000 plus interest and costs.
Court documents revealed that Jackson made the following investments in schemes that were managed and promoted by the Great Southern Group:
- 2005 plantations project — $15,000;
- 2006 cattle project — $140,000;
- 2007 cattle project — $140,000;
- 2007 olive project and options — $48,000; and
- 2008 wine grape project — $102,200.
The Supreme Court found that the initial judge erred in not finding that that Abram was liable in damages to Jackson for a loss from his investment in the 2006 cattle project in the sum of $119,000, and for not finding Abram liable for the loss of the entire $140,000 invested by Mr Jackson in the 2007 cattle project.
The initial judge found that Abram was negligent in three ways:
- Because he failed to warn Jackson of the risk of having such a large proportion of his investment in Great Southern;
- Because he failed to advise Jackson to spread the risk; and
- Because he actively encouraged Jackson to place further investments with Great Southern after Jackson had expressed concern about “putting all his eggs in one basket”
