What is the current state of the law on the liability of escrow holders?
California, United States of America
The following excerpt is from Peterson Development Co. v. Torrey Pines Bank, 233 Cal.App.3d 103, 284 Cal.Rptr. 367 (Cal. App. 1991):
11 Even though the escrow theory of liability was not a focus of the summary judgment proceedings, we have deemed it necessary to address this question in full. An appellate court may allow an appellant to assert a new theory of the case on appeal where the facts were clearly put at issue at trial and are undisputed on appeal. (Richmond v. Dart Industries, Inc. (1987) 196 Cal.App.3d 869, 879, 242 Cal.Rptr. 184.) Here, the fiduciary theory is generally set forth in the amended complaint and the record contains undisputed evidence about the provision of loan processing services such as are commonly provided by escrow holders.
* See footnote 1, ante.
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