Letter of Memorandum in response to the problem question:
ASSIGNMENT QUESTION - You work as a solicitor in a leading law firm on the Sunshine Coast called Limestone Lawyers. A Senior Partner of the firm, David Brown, has assigned you a case file (LL/2016/51/3) and has requested an opinion on the matter from you. Please draft your opinion in the form of an internal memorandum of advice addressed to the Senior Partner, David Brown.
The facts within case file LL/2016/51/3 are as follows:
Tina, a long-serving employee, voluntarily made various advances over the years, totalling about $300,000, to her employer, a law firm founded by Ricky. These advances were not made at the request of Ricky. Neither did Tina always inform Ricky beforehand. Although Tina was initially engaged as the firm's accounts officer, she became its office manager in January 2015. As office manager, Tina promoted the firm to her friends and relatives, by singing praises of Ricky's legal skills. Due to this, Tina's good friend Sally, engaged Ricky as her divorce lawyer. Sally was taken in by Ricky and agreed to let him keep $80,000 from her divorce settlement as a personal loan from her to him. Ricky never repaid Sally. The firm was eventually placed in receivership and Ricky was declared a bankrupt.
Tina and Sally found themselves being unsecured creditors and did not recover anything. Ricky has recently been lucky in that he has inherited a handsome sum of money from his late grandfather, and has managed to reinvent himself. Tina and Sally wish to sue Ricky for breach of fiduciary duties. They have approached us, Limestone Lawyers for advice. Draft your advice with regards to possible rights accruing to and/or liabilities incurred by the respective parties. Restrict your answer to possible breaches of fiduciary duties, with a discussion of appropriate remedies.
Attachment:- Assignment.rar