Miller v. Craig
Arizona Court of Appeals
558 P.2d 984 (1976)
The Millers (plaintiffs) and Mary Crouse signed a contract for the sale of the Millers' tavern, naming Harry Craig (defendant) as closing lawyer and escrow agent, with Crouse depositing $5,000 in earnest money to be disbursed only at closing or as liquidated damages if Crouse defaulted. After Crouse later sued the Millers over other contract provisions and won a damages award equal to her deposit, she presented the court order to Craig, who — without consulting the Millers — turned the deposit over to her. The Millers successfully appealed that underlying judgment and then sued Craig for the sum he had disbursed; the trial court granted Craig summary judgment.
Whether a court will strictly construe an escrow agreement's definition of the escrow agent's duties.