In re Akivis
Supreme Court of New York
492 N.Y.S.2d 316 (1985)
As part of the sale of Sixty Four Reade Corp.'s property to Akivis (plaintiff), the seller's attorney David Brecher (defendant) held $5,000 in escrow, to be released once the seller vacated the property in broom-clean condition within 60 days as the contract required; Sixty Four Reade failed to remove its possessions or leave the property broom-clean, yet Brecher released the escrow funds anyway. Akivis brought an Article 78 proceeding against Brecher for breaching his escrow duties and causing the resulting damages from the property not being properly vacated.
Whether, in a real estate transaction, an escrow agent may be liable for damages flowing directly from the escrow work performed, while escaping liability for damages merely incidental to that work.