Defalcations / Escrow Agents

[klionerg]

Defalcations are where escrow agents steal money from their escrow account. This can be a lawyer or a title agent doing real estate transactions. I am specifically interested in expert advice about the responsibility a title underwriter would have for the acts of their agent especially if the title underwriter does not properly supervise their agent's activities. If someone has some experience with this issue, I am interested in hearing from you.

[AFFA]

I would like to inform you that the acts of the agent are binding on principal. In this regard, the title underwriter is liable for the acts of his agents. If title underwriter has not properly supervised acts of his agent then also title underwriter will be liable because it is the duty of title underwriter to keep a check on the acts of his agent. When agent acts in public he represents his principal. Therefore, if some loss is caused by agent while acting for principal then that principal will be liable for that loss.

AFF

Thank you AFF. In Florida case law, however, there hasn't been any victories in this regard. The cases show that the Title Underwriters aren't responsible for what lawyers do with their escrow accounts. Escrow accounts are overseen by the bar. I had heard that in other states the title underwriters are held responsible, but not in Florida. My case is in Florida. I have a great attorney. We're just trying to find perhaps something recent that has happened on this issue in the past 6 months that would affect are argument trying to hold the underwriter responsible.