Resolving Disputes Over Escrow Accounts in Florida

– Interpleader Actions in Florida are governed by Florida Rule of Civil Procedure 1.240, which is a rule promulgated by Florida’s Supreme Court.
– The person holding the funds (escrow agent) to which two or more persons make claims (such as a buyer and seller) files suit asking the court to decide which party has a legal right to the binder.
– If the court finds the interpleader appropriate, the person filing the suit is dismissed from the case, the funds are deposited into the court registry, and the claimants to the funds litigate between themselves the issue of entitlement of the deposited monies. – The escrow agent may recover costs and attorney’s fees in initiating an interpleader action.
– To be entitled to fees and costs, the plaintiff must prove total disinterest in the stake and show they did not cause conflicting claims.
– Delay in filing the interpleader may result in loss of right to attorney’s fees and costs from the interpleaded funds.
– It may be in the best interest of claimants to settle a dispute and accept a reduced amount before the interpleader action is filed.
– Interpleader actions can be complex and expensive, so understanding the process is important for the litigating parties.

https://www.jimersonfirm.com/blog/2016/01/escrow-binder-disputes-and-interpleader-actions-in-florida/