Article written by Lori Hershorin.
Appellate Victory: Escrow Holder is not Liable for Interpleading Escrow Deposit on Cancelled Transaction; Attorney’s Fees and Costs Awarded to Title Company.
Matter handled by Lori Hershorin.
Escrowee Correctly Disbursed Money to Seller Before Close of Escrow.
Hershorin & Henry obtained a major victory on December 3, 2015, when the Court of Appeal adopted Hershorin & Henry's arguments and ruled in favor of its escrow client. This favorable Appellate Court decision represents Hershorin & Henry's 30th appellate victory out of 30 appeals - an undefeated record in the Appellate Court.
The case involved an escrow company's early release of the buyer's entire down payment to the seller before the close of escrow. Due to buyer's financial problems, escrow never closed. The buyer thereafter sued the escrow company to recover the money released to the seller (as the seller was bankrupt), claiming that the escrow company breached the escrow instructions by releasing the funds early. The Court of Appeal agreed with Hershorin & Henry's arguments that the evidence supported the parties' intentions of releasing the funds prior to the close of escrow.
The important lesson gained from this case is that the escrow company must require clear, written, mutual instructions from the parties before it releases any monies out of escrow.
With more than twenty years of experience in appellate law all over the State of California, Hershorin & Henry can help you identify the best arguments for an appeal, and give you an informed opinion as to whether an appeal is worthwhile. Contact us now for information about appeals at (949) 916-8047 or e-mail us at firstname.lastname@example.org.
ARE YOU READY? Let Hershorin & Henry, LLP assist you with training and guidance of policies and procedures to ensure proper compliance with the CFPB Rules! read more
Mr. Van has over 14 years of experience in successfully handling Business Litigation, Financial Services Litigation, and Product Liability Litigation for Fortune 500 companies. Mr. Van's practice encompasses a broad spectrum of matters in both state and Federal court read more
The vision of the California Escrow Association is to both lead and support the escrow settlement services and real estate and financial industries through our commitment to the professional and personal growth of the escrow practitioner. Each and every member of CEA will have the opportunity to deliver and receive information through modern technologies so as to continue to be an eff ective, educated professional and involved CEA member. This shall include but not be limited to legislative hotline, modern training methods and membership information. CEA shall continue to identify and address the changing needs of the escrow professional and provide a forum for the issues of its diverse membership.read more
Samantha Elauf applied for a position at clothing retailer Abercrombie & Fitch, and was interviewed by Heather Cooke, the store's assistant manager. Elauf, a practicing Muslim, wore a headscarf (or hijab) to her job interview. Cooke qualified Elauf to be hired, but was concerned that Elauf's headscarf would conflict with the store's dress code prohibiting "caps." Cooke sought the store manager's guidance to clarify whether the headscarf was a forbidden "cap," but did not receive a response. read more
HERSHORIN & HENRY, LLP OBTAIN AN APPELLATE VICTORY:
ESCROW HOLDER IS NOT LIABLE FOR INTERPLEADING ESCROW DEPOSIT ON CANCELLED TRANSACTION; ATTORNEY'S FEES AND COSTS AWARDED TO FIDELITY
1575 Adrian Road Associates LLC ("Seller") entered into a real estate purchase agreement ("Contract") with Paul Leininger ("Buyer"). Fidelity National Title ("Fidelity") served as the escrow holder pursuant to its own escrow instructions. Fidelity was not a signatory to the Contract.read more
Members of Hershorin & Henry have been handling interpleaders for over thirty one years. Hershorin & Henry has been entrusted with over $12,000,000 in escrow trust account funds to deposit with the court because the parties to the escrow could not agree on how the funds were to be distributed. Disputed escrow funds represent a potential liability for escrow corporations and add administrative burdens on the escrow to insure that the disputed funds are not misapplied. An escrow that takes it upon itself to release funds to one party over the objections of the other party is making a potentially dangerous decision that could lead to protracted and expensive litigation. Hershorin & Henry works diligently with its escrow clients so they can avoid this potential liability. read more
AB 704 (Cooley) passed unanimously out of the California State Assembly on a 73-0 vote. The bill now moves to the State Senate for approval. AB 704 proposes to create a definition of "escrow" within the California Insurance Code that expressly allows an underwritten title company ("UTC") to handle an escrow in their country of licensure for real or personal property located anywhere in the state. read more