Construction Escrow Service, Inc. v. St. Charles Motor Inn Corp.

PUDLOWSKI, Presiding Judge.

In August 1971, a Construction and Disbursing Escrow Agreement was entered into by the following parties: St. Charles Motor Inn Corp., as the owner and contractor (St. Charles); First Mortgage Investors, as the mortgagee (FMI) and; Construction Escrow Services, Inc., as the escrowee (Construction Escrow). The sequence of events leading to this action began with a loan to St. Charles. FMI lent St. Charles 1.6 million dollars for construction of a Howard Johnson Motel. St. Charles eventually defaulted on their mortgage payments and FMI foreclosed. Upon foreclosure FMI…