ICAEW BL · Chapter 5 · Question 9 of 10
A client's financial loss caused by an accountant's negligent advice is assessed at £80,000. The court finds the client 25% responsible for the loss because he ignored an obvious warning in a draft report. How much will the client recover?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) £60,000
Explanation
Damages are reduced in proportion to the claimant's share of responsibility. A 25% reduction of £80,000 is £20,000, so the client recovers £80,000 − £20,000 = £60,000 (that is, 75% × £80,000). £20,000 is only the amount of the reduction. £64,000 wrongly applies a 20% reduction, and £80,000 ignores the contributory negligence.
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