Legal Definitions - ad omissa vel male appretiata

Ad omissa vel male appretiata is a Latin legal phrase originating from Scots law. It translates to "concerning things omitted or undervalued." This principle applies when there is a need to correct an initial assessment, inventory, or valuation because certain items were either completely left out (omitted) or were not assigned their proper worth (undervalued).

It essentially serves as a mechanism to ensure that all relevant assets are accurately identified and appraised, often in the context of an estate, trust, or other collection of assets, to ensure fairness and proper accounting.

• Example 1 (Omitted Asset in an Estate):

  An executor is compiling the inventory of a deceased person's estate. During the initial review, they fail to discover a valuable antique watch collection stored in a hidden compartment within a desk. Later, a family member uncovers the collection. The principle of ad omissa vel male appretiata would require the executor to add these previously omitted watches to the estate's inventory and have them professionally valued. This ensures that all assets are accounted for and properly considered before the estate is distributed among beneficiaries.

• Example 2 (Undervalued Property in a Trust):

  A trust holds several properties, and its initial financial statements list a commercial building at its purchase price from several decades ago. Over the years, the property has undergone significant renovations and is located in a rapidly appreciating urban area. Applying ad omissa vel male appretiata would necessitate a re-evaluation of this building. A new appraisal would be commissioned to reflect its current market value, correcting the previous undervaluation and accurately representing the trust's true worth.

• Example 3 (Omitted Intellectual Property in a Business Sale):

  During the sale of a small tech company, the initial valuation report for the acquisition focuses primarily on tangible assets and existing software. However, the company also possesses several pending patents for innovative technologies that were not explicitly listed or valued in the initial assessment. The buyer's due diligence team later identifies these patents. The concept of ad omissa vel male appretiata would then require these omitted intellectual property assets to be included in the valuation and properly appraised, potentially adjusting the final sale price to reflect their true contribution to the company's value.