JOHN A. NEWSOM, AS LIQUIDATOR OF THE CITIZENS BANK & TRUST COMPANY, APPELLANT,
v.
TAMPA SHIP BUILDING & ENGINEERING COMPANY, A CORPORATION, APPELLEE
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The Florida Supreme Court modified a prior judgment, affirming a lower court's decree except for an award of interest on an escrow deposit, which was deemed improper.
No, an escrow holder is not required to pay interest on funds held in trust under an escrow agreement.
“An escrow holder is not required to pay interest on funds which are held in trust by such escrow holder under an escrow agreement.”
Establishes the legal principle regarding interest on escrow deposits.
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Join FLexlaw to unlock all legal intelligenceThe case involved a dispute over an escrow deposit of $10,000.00. The lower court had awarded interest on this deposit, which was challenged on appeal…
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On consideration of petition for rehearing, the Court finds that the decree of the chancellor should *1180be modified to eliminate therefrom the item of $488.88, interest which was claimed as having accrued on a deposit in escrow. An escrow holder is not required to pay interest on funds which are held in trust by such escrow holder under an escrow agreement.
The judgment heretofore entered by this Court affirming the order of the chancellor is hereby modified to read as follows:
The decree of the chancellor is affirmed, except as to the item of $488.88 allowed as interest on the escrow deposit of $10,000.00 and the chancellor is directed to reform the decree in accordance with this judgment and thereupon, the remainder of the decree shall stand affirmed. . Costs of this appeal should be taxed against the appellee.
Affirfhed in part and remanded.
Petition for rehearing denied.
Terrell, C. J., and Whitfield, Ellis, Strum, Brown and Buford, J. J., concur.
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Duncan v. Cady, 109 Fla. 491 (Fla. 1933)…r issued but were retained by the bank merely as memoranda of the transaction. On authority of the opinion in the case of Newsom v. Tampa Shipbuilding & Engineering Company, 100 Fla. 1173, 131 So. 115, and of the opinion in that case on rehearing, 100 Fla. 1179, 137 So. 882, the decree of the Chancellor should be modified to eliminate therefrom the item of $18.34, interest paid on the escrow deposit, the remainder of the decree to stand affirmed. Whitfield, Ellis, Terrell, Brown and Buford, J. J., concur.…