Opinion ID: 1776292
Heading Depth: 2
Heading Rank: 4

Heading: Escrow Fund Share

Text: Murray also argues that the trial court improperly determined the liability of Murray, based not upon his share or interest in the escrow account, but, rather, by considering the entire escrow amount as due to Alfab. The Solomon brothers' share of the escrow was $74,362.16. The Solomon brothers entered a pro tanto settlement with Alfab in which they agreed to release, in favor of Alfab, their interest in the escrow account in return for a dismissal with prejudice from the present action. Because the settlement was pro tanto, any amount deemed to be recoverable by Alfab upon the contract is reduced by the dollar amount of the settlement, which was $74,362.16, the amount of the Solomon's interest in the escrow account. Based upon the foregoing, we hold that the trial court's judgment was improper and that Murray is entitled to $81,672, which represents his interest in the escrow account after adjustments. Alfab is entitled to a disbursement from the escrow account in the amount of $167,531, the net downward adjustment of the purchase price. The adjusted calculations appear below: Beginning Balance per 1/31/86 Review Statement (Issued April 4) $1,209,776 Less Adjustments Per Aged Accounts Receivable $ 36,971 Per Unrecorded Insurance Claim 93,515 Per Expenses on Insurance Claim Settlement 27,553 ________ Total $158,039 Plus Adjustment Per Tax Settlement 101,971 ________ Net Adjustment (56,068) __________ Shareholder Equity Less Net Adjustments $1,153,708 Less Classification Error in Accounts $ 76,566 __________ Adjusted Equity 1/31/86 $1,077,142 Required Base Equity Per Contract 1,244,673 __________ Net Downward Adjustment to Purchase Price Balance 167,531 Less Solomons' Interest in the Escrow Account $74,362.16 __________ Difference Between Decrease in Purchase Price and Offset of Solomons' Settlement 93,168.84 Murray's Interest in Escrow Account 174,840.84 __________ Net Amount of Escrow to be Refunded to Murray $ 81,672.00