Can a plaintiff bring a claim for damages against an escrow holder for failing to act in accordance with the instructions?

California, United States of America


The following excerpt is from Amen v. Merced County Title Co., 21 Cal.Rptr. 158 (Cal. App. 1962):

'Statute of Limitations.--It has been held, in effect, that despite the written nature of the escrow instructions a suit for damages against the escrow holder based on a violation of his duty to act in accordance with the instructions is not a suit based on a contract in writing, but has its basis in an implied parol agreement, and is therefore subject to the 2-year statute of limitations set forth in 339 subdivision 1 of the Code of Civil Procedure.'

In a similar situation, the court in Shumaker v. Rippy, 138 Cal.App.2d 815, 816 292 P.2d 536, held:

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