California Court of Appeal

In plaintiff-wholesale residential mortgage lender's suit against defendant-settlement agent after defendant distributed $53,853 to the attorney in fact of the buyer of real property, a payment that was neither authorized by the closing instructions nor disclosed by defendant before it made the payment, judgment of the trial court is reversed and remanded where: 1) the court erred both when it found there was no breach of the closing instructions contract with plaintiff because escrow had closed; and 2) the court erred when it failed to consider whether defendant breached the closing instructions contract when it disbursed the $53,853 payment and closed the two loans to the buyer/borrower without first notifying plaintiff of the last minute escrow instruction.

Appellate Information

• Decided 04/27/2010
• Published 04/27/2010

Judges

• BENKE, Acting P.J.

Court

• California Court of Appeal

Counsel

• For Appellant:
  
• Lynde Selden II for Plaintiff and Appellant., Severson & Werson, Sunny S. Huo and Joshua E. Witehair for California Mortgage Bankers Association as Amicus Curiae on behalf of Plaintiff and Appellant.


• For Appellees:
  
• Garrett & Tully, Robert Garrett, Ryan C. Squire and Scott B. Mahler for Defendant and Respondent.