Opinion ID: 2191433
Heading Depth: 1
Heading Rank: 1

Heading: These facts are undisputed:

Text: The plaintiff Countywide Realty Corp. (Countywide) seeks from the defendant Penn Title Insurance Company (Penn Title) funds which Penn Title was to have held as escrow agent under an Agreement for the Sale of Land, entered into between Countywide, as seller, and the defendant Francis J. Albani, as buyer. The Agreement was dated January 25, 1974, and recited a purchase price of $640,000. Under the Agreement, a down payment of $10,000 in cash was to be deposited with Penn Title in escrow. [2] Another $10,000 was to be paid in cash at settlement, which was scheduled for March 1, 1974; but the Agreement provided that the settlement date could be extended upon the payment of additional cash deposits of $2,000 per month by Albani. [3] The remaining $620,000 was to be paid in the form of two purchase money mortgages, guaranteed by a bank or lending institution satisfactory to Countywide. Albani could not obtain financing for the project in time for the settlement date and requested an extension of time. Countywide agreed to a 30 to 60 day extension of the 45 day financing contingency period specified in the Agreement. When financing was still unavailable, Countywide sought to abrogate the Agreement, but Albani accomplished postponement of the settlement date by purportedly making six monthly $2,000 payments in cash to the escrow account in the hands of Penn Title. Upon the receipt of each $2,000 check, Penn Title advised Countywide's attorneys in writing, acknowledging receipt of each check. However, neither the initial $10,000 deposit nor the additional monthly deposits were made in cash, as required by the Agreement and as implied to Countywide's attorneys by Penn Title. [4] Instead, Penn Title was actually holding the $22,000, which included the initial down payment, in unnegotiated checks of Albani. When it became apparent in June, 1975 that Albani could not proceed to settlement for lack of financing, the deal was called off. Upon rejection of its demand, Countywide then brought this action against Albani and Penn Title for the $22,000 which Penn Title was purportedly holding in escrow in cash. Countywide bases its action primarily upon Paragraph 10 of the Agreement which provided: 10. Should Albani violate or fail to fulfill and perform any of the material terms and conditions of this Agreement, all sums paid by Albani on account of the purchase price or consideration herein shall be retained by Seller as liquidated damages for such breach, whereupon the rights and obligations of the parties hereunder will be at an end. Countywide also claims that Albani abandoned any interest he might have had in the purported escrow fund by failing to list any such interest as an asset in subsequent bankruptcy proceedings, and by failing to respond to a Request for Admissions in this case asking that he deny any claim to them. Penn Title takes the position that it seeks instructions as a fiduciary escrow-holder; that it may be assumed for the purposes of this action (contrary to the facts and the representations to Countywide), that it holds the $22,000 in cash; but that it is confronted by Albani's potential claim under Paragraph 16(a) of the Agreement which provides: Notwithstanding anything to the contrary stated herein, it is understood and agreed that if Albani is unable to secure a bank or lending institution guarantee satisfactory to seller for the purchase money mortgage, as provided in paragraph 1(c) hereof, within forty-five (45) days from date, this Agreement shall become null and void. It appears that Penn Title is willing to pay any part of the $22,000 which the Court determines is owing to Countywide.