Feinberg v. Intrastate Escrow Corp

In Feinberg v. Intrastate Escrow Corp. (1963) 216 Cal. App. 2d 80, the plaintiff-creditor agreed to withhold levying on property in return for the agreement by both the property-owner debtor and the escrow holder to pay the plaintiff on funding of a new loan on the property. The court held the escrow holder was estopped to deny liability to the plaintiff because the escrow holder actively participated in inducing the plaintiff to detrimentally rely on the promise of payment. (Id. at pp. 82-85.)