Restructuring & Insolvency analysis: ICC Judge Greenwood refused Mrs McFadzean’s application for leave to bring a claim under section 304 of the Insolvency Act 1986 (IA 1986) against her former trustees in bankruptcy, Mr Cacho and Mr Waghorn (the Trustees), in relation to the sale of a French property (the Property). The judge held that the Trustees had acted reasonably and within the broad discretion afforded to insolvency office-holders when realising estate assets under time pressure and in challenging circumstances. Despite Mrs McFadzean’s allegations that the Property was negligently sold at an undervalue, the court found that the Trustees had relied on professional advice, pursued the highest available unconditional offer after a higher offer was withdrawn for reasons outside their control, and made rational decisions in the face of short deadlines and lack of liquid funds. Crucially, Mrs McFadzean failed to adduce any expert evidence on French planning law, valuation of the Property, or the prospects of alternative sales, which the judge found to be fatal to her application. The judgment reinforces the robust ‘filtering’ function of the leave requirement under IA 1986, s 304, confirming that applicants must show a reasonably meritorious cause of action likely to benefit the estate, supported by solid evidence. The decision is significant for practitioners as it highlights both the evidential threshold for misfeasance claims against trustees in bankruptcy and the wide latitude given to office-holders exercising commercial judgment. Written by Brian Rostron, Associate at Addleshaw Goddard LLP.