Westpac to pay almost $1 million for Jamieson's GFC loss
WESTPAC has been ordered to pay Sunshine Coast mayor Mark Jamieson for the loss of hundreds of thousands of dollars during the Global Financial Crisis.
The Queensland Court of Appeal dismissed Westpac's appeal of a judge's decision to order the bank to pay for poor financial advice Cr Jamieson was given in 2007.
Cr Jamieson - who was APN News and Media CEO, publisher of this newspaper, at the time - borrowed $5 million to invest in a Macquarie Bank trust following advice from a Westpac adviser.
The investment lost Cr Jamieson and his wife Lorrell $623,236 when the Global Financial Crisis hit.
The court heard without the advice the Jamiesons would have invested in agribusiness where they would have made a significantly smaller loss.
Westpac appealed the original court's decision which ordered the bank to pay the Jamiesons $918,656 to account for interest and money lost to tax.
The bank claimed they had appropriately warned the Jamiesons of potential risks.
However, the court heard the Jamiesons had told the adviser, Robert Tindall, they did not want to put more than 10% of their overall worth at risk.
Justice Peter Applegarth found Westpac's Statement of Advice was "careless and misleading" in not highlighting more than $1.125 million was at risk, more than 10% of their total net worth.
"In summary, the Statement of Advice was deficient in simply representing that less than 10% of the Jamiesons' overall net wealth was at risk of loss and only qualifying this statement by a later entry about an after-tax loss which was calculated on the basis of largely unstated assumptions," he found.
Westpac's appeal of the original court decision was dismissed.
- APN NEWSDESK