Ah, I see that now in that statement. He does not specifically claim his lendees are not invested in BS&T. Regardless of what Patrick claims, I still stand by the fact there was no common mistake on the premise only Patrick made the claim and that the depositor merely agreed that Patrick promised it, he did not also make the same claim, which would be required for a common mistake.
A bit old but still a good example:
I'll give you a real world example of this same principle. A few years ago, a doctor examining my daughter noticed that her pediatrician had noted a heart murmur in her records but that he didn't hear it. The physician felt that she might have grown out of it, but the only way to be sure was to run a test. He assured me my insurance would cover the test. We had the test, and my insurance didn't cover it.
I refused to pay. The physician argued that I had signed a contract saying that I was responsible for any amounts my insurance wouldn't pay. He argued that our contract clearly stated that I was responsible for any amounts my insurance wouldn't cover. I agreed with him, but then pointed out that because I was responsible for any amounts my insurance wouldn't pay, his mistake in assuring me that my insurance would cover the costs damaged me. And he was responsible to me for the loss his mistake caused me, a loss that (because both are between me and him) offsets my responsibility to pay him for the test. He actually checked with his lawyer (I think more because he was curious than anything) and he agreed.
It's substantially the same thing here. It's precisely because Patrick promised to pay that money back that the mistake made by those who loaned him money caused Patrick damages for which they are responsible. Because both mistakes are between the same two people, the losses one party's mistake caused the other offset the losses the other party's mistake caused.
Irresponsible lending is just as much a problem as irresponsible borrowing. We wouldn't have had the Pirate fiasco if not for irresponsible lenders.
Aug 10 08:10:17 in the event BS&T goes bust, I have more than enough assets to cover that
Aug 10 08:10:41 mainly because the 15,500 coins I hold on deposit are not invest in BS&T
Under your current arguments, Patrick would not have to give you your deposit back in full, because:
- He said the deposits would not be lost in case of BS&T default mainly because he has non BS&T investment which is apparently enough to cover those deposits. (He shows no proof of that and just states it to you.)
- You agreed to act upon that claim and proceed with it because you thought that was sufficient to guarantee the deposit.
- There was the common mistake that the deposits would not be lost, because Patrick had non BS&T investment which would be covering deposits if BS&T defaulted.
- Which was not the case because Patrick's non BS&T investment did not cover the deposits when BS&T defaulted.
- So the deposits' loss should be shared now that Patrick gave his loans based on the common belief that the non BS&T investment would be covering the deposits when BS&T defaulted.
- You both proceeded on the belief Patrick non BS&T investment would cover the deposits.
Under your current arguments, the doctor would not have had to pay you, because:
- He said you would not pay for the test in case you proceed with it because your insurance will apparently cover that cost. (He shows no proof of that and just states it to you.)
- You agreed to act upon that claim and proceed with it because you thought that was sufficient to not get to pay for the test.
- There was the common mistake that the test would not be paid for, because the insurance would pay for the test if you proceeded with it.
- Which was not the case because the insurance company did not pay it for you when you proceeded with the test.
- So the test's costs should be shared now that the doctor executed the test based on the common belief that the insurance would be pay the costs when you'd proceed with the test.
- You both proceeded on the belief the insurance would pay the costs.
The doctor's lawyer seems to agree with me about common mistake in contracts because your doctor ended up doing the opposite.
The depositors did not investigate if that was sufficient to guarantee deposits and took Patrick's claim for granted.
You did not investigate if your insurer would actually pay for it, yet you took your doctor's claim for granted.
Legally Patrick owes 100% of deposits for stating deposits would be covered on account of non BS&T investment prior to you accepting to deposit.
Legally your doctor owed you 100% the cost of the test for stating it would be payed for on account of your insurer paying for it prior to you accepting to do the test.
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The only difference is that depositors decided to more or less blindly trust a stranger over the web over some much less realistic claim.
While the last statement is true (that if people didn't lend their money left and right without investigation, the Pirate fiasco would not have been possible), they did not cause the loss of Pirate running away with the funds. Pirate is solely responsible for that. Their tort is giving money left and right without thinking which is a completely different mistake than the one causing the damage.
I am IN NO WAY suggesting we should not blame people for unknowingly giving their money left and right without extensive investigation. I am simply stating that Patrick legally owes the full deposits as what he claimed to offer, regardless if the loss would have been impossible if people did not enter in poorly defined/investigated contracts. The mistake is not the same. Patrick's mistake created the loss to for the depositors. The depositors' mistake placed them in the situation, but did not directly cause the loss.