Adkins v. Armata

This is an action in contract by the plaintiff (buyer) against the defendant (broker) to recover a deposit ($1,000) under a purchase and sales agreement. The deposit was being held by the broker in escrow. The seller was unable to convey a good title. The buyer was unable to obtain F.H.A. financing. The answer alleged the defendant was holding the money as agent for the sellers (McDonald) and that since the plaintiff did not purchase the property as agreed — the broker (defendant) was entitled to retain 50% of the deposit and the sellers were entitled to the other 50%.

This case was…