Diana McFadzean v Ricardo Cacho Martinez & Anor

Applicant failed to adduce expert evidence supporting claim of undervalue or breach of duty; trustees acted reasonably on available advice and accepted highest unconditional offer; claim not reasonably meritorious or likely to benefit estate; leave refused.

Parties: Applicant: Diana McFadzean; First Respondent: Ricardo Cacho Martinez; Second Respondent: Matthew Waghorn
Jurisdiction: England and Wales
Judgment Date: 27 February 2026
Procedural Posture: Bankruptcy Application / Ruling on Application for Leave to Proceed Under Section 304 Insolvency Act 1986
Outcome: Application dismissed
Legal Topics: Trustee Liability, Sale of Assets at Undervalue, Leave to Proceed, Misfeasance, Breach of Duty

Insolvency Bankruptcy Trustee Liability Sale of Assets at Undervalue Leave to Proceed Misfeasance Breach of Duty

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Parties

Diana McFadzean

Applicant

Ricardo Cacho Martinez

First Respondent

Matthew Waghorn

Second Respondent

Procedural Posture

Bankruptcy Application / Ruling on Application for Leave to Proceed Under Section 304 Insolvency Act 1986

Legal Issues

1 Whether applicant has established a reasonably meritorious cause of action against trustees for sale at undervalue
2 Whether leave should be granted under section 304 Insolvency Act 1986 after trustees' release
3 Whether trustees breached duty by failing to obtain proper advice and adequately market asset

Ratio Decidendi

Court Disposition

Application dismissed