Plaza Layenda v. Lawyers Title

Lawyers Title of Arizona, Inc. (“Lawyers Title”) appeals from the trial court's judgment after a trial to the court in favor of the Richard L. Jones Revocable Trust (“the Trust”) and Plaza Leyenda, LP, which had sued Lawyers Title for negligence and breach of fiduciary duty. The claims arose from the failure of Lawyers Title, the escrow agent, to promptly notify Plaza Leyenda and the Trust that the check provided by the buyer of a piece of property Plaza Leyenda was selling had been returned for non-sufficient funds. Plaza Leyenda contended that, as a consequence, it was unable to accept a bid for construction on the property, resulting in an increase in construction costs. Plaza Leyenda and the Trust appeal the trial court's denial of its request for attorneys' fees. For the following reasons, we hold that Lawyers Title breached no duty to the Trust and so vacate the judgment in favor of the Trust. We affirm the court's verdict in favor of Plaza Leyenda on its claims of negligence and breach of fiduciary duty. We vacate, however, the court's award of damages and remand with an order to recalculate damages in accordance with this decision.