Ryan Squire and John Tully Win Appeal in Escrow Case

Ryan Squire and John Tully win appeal in escrow case. Today, the California Court of Appeal agreed with Garrett & Tully’s escrow client, holding that escrow companies’ duties are limited, not broad. The court held that an escrow company had no duty to protect a buyer against claims that the buyer was engaging in a fraudulent transfer. The court further held that the escrow company did not act improperly when (before closing/recording), the escrow company corrected the buyer’s vesting by modifying the original grant deed signed by the grantor (and acknowledged), pursuant to instructions from the buyer and seller authorizing and directing the escrow company to correct the original deed. Finally, the court held that plaintiffs’ claims were barred by the provision in the escrow company’s general provisions stating that any suit had to be filed within 12 months of the close of escrow; the court held that the 12-month provision was reasonable.

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