Steven Edelman v. Belco Title & Escrow, L.L.C.

FLAUM, Circuit Judge.

The plaintiffs in this diversity case are lenders who lost a lot of money on a bad real-estate investment. They sued the transaction’s escrowee for a breach of fiduciary duty under Rlinois law. The plaintiffs argued that because the escrowee signed a form stating that it was acting as the lenders’ “agent” for the purposes of the escrow and closing, the escrowee should have communicated to the plaintiffs that they were not going to receive the first-priority mortgage they had been promised by the real-estate developers. We agree with the magistrate judge that Illinois law…