Practice point: An escrow agent not only has a contractual duty to follow the escrow agreement, but additionally becomes a trustee of anyone with a beneficial interest in the trust.
Student note: Therefore, an escrow agent can be held liable for both breach of the escrow agreement and breach of fiduciary duty as escrowee.
Case: Baquerizo v. Monasterio, NY Slip Op 08890 (2d Dept. 2011).
Here is the decision.
Tomorrow’s issue: Service on Health and Hospitals Corporation.
