Angell v. Ingram

We again have a case where one of two innocent parties must sustain a loss because of the defalcation of an escrow holder. The situation is similar to that in Lieb v. Webster, 30 Wn. (2d) 43, 190 P. (2d) 701, and the escrow holder was the same.

The parties agree that the rule laid down in Lieb v. Webster, supra, is the one which must be applied, i.e., when an escrow agent absconds with money he is holding in escrow, the loss must fall upon the person as whose agent he is holding the money at that time.

The material facts are that on September 4, 1946, an earnest-money receipt was executed…