Opinion ID: 2074817
Heading Depth: 1
Heading Rank: 4

Heading: Duty to prevent property from diminishing in value.

Text: Adkins contend the Bank was obligated to prevent the property held in escrow from diminishing in value. They argue that an escrow agent is like a trustee and is under the same duty to maintain the value of the escrow property. Adkins are incorrect in likening an escrow agent to a trustee. An escrow agent is an agent to all the parties of the escrow, making his duties different than a trustee. Hannon v. Western Title Ins. Co., 211 Cal.App.3d 1122, 260 Cal.Rptr. 21 (1989). Furthermore, as explained in Issue 1., the Bank was without power to control the operation of Central. Instead, the property the Bank was obligated to keep and preserve was the certificates. Any loss of value was not the result of the conduct of the Bank as escrow agent and was outside their control.