Home Federal Savings & Loan Ass'n v. Cobb
Home Federal Savings & Loan Ass'n v. Cobb
Opinion of the Court
L. S. Cobb is receiver for Jeanette C. Bradley and Hugh C. Bradley, formerly husband and wife. Cobb contracted to sell the house and lot of the Bradleys to Merry L. McCleskey. On December 17, 1974, the court confirmed the contract. On January 15,1975, the sale was closed. At that time it was known by the parties that Hugh C. Bradley was occupying the property. Cobb and McCleskey entered into an escrow agreement which provided that the documents of the sale would be held until Bradley had vacated the property and McCleskey was in possession. On the afternoon of January 22, 1975, Bradley was instructed to vacate the property or he would be evicted by court order. That night the residence was extensively damaged by fire. On demand of McCleskey the escrow agent returned all deeds, documents and checks issued at the closing to the respective parties. Thereafter Cobb brought the present action against all parties including their insurance carriers to declare if the sale of the property to McCleskey had been completed at the closing on January 15,1975. The trial court found that Cobb had no authority to enter into an escrow agreement and the sale to McCleskey was completed on January 15, 1975. McCleskey, her purported mortgagee, Home Federal Savings & Loan Association, and her purported insurance carrier, First of Georgia Insurance Company, appeal. Held:
1. The sales contract between the receiver and McCleskey does not provide for an escrow nor does the court’s order approving the contract. Therefore we must agree that the receiver had no authority to enter into an escrow agreement. However, if the receiver breached his instructions and authority in this regard he breached other conditions of the sales contract approved by the court. For instance, among other things the sales contract provided the sale be closed on January 5, 1975; that possession of the premises shall be granted no later than the day of closing; that the seller should satisfy objections to the title; that papers necessary to carry out the terms of
Judgment reversed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.