When the administrators of an estate found that they had been the victims of a fairly common scam, they failed to take action in the courts quickly enough to obtain redress.
The administrators were told that their late parents' property was worth £190,000 and it was sold for that sum. However, its real value was £350,000 and it was sold on to a developer with the intermediary retaining part of the development profit.
The claim was not brought until after the normal limitation period of six years after the loss was or should reasonably have been discovered, so the administrators claimed that the 'secret profit' made by the intermediary was held on trust for them. The court rejected the claim, however.
The case shows how important it is to take professional advice and to act promptly when something occurs which requires legal action. It also shows the importance of obtaining more than one valuation of major assets, especially property, as such scams are relatively common.