National Union Fire Ins. Co. Pittsburgh, Pa. v. Proskauer Rose Goetz & Mendelsohn

In National Union Fire Ins. Co. Pittsburgh, Pa. v. Proskauer Rose Goetz & Mendelsohn (165 Misc 2d 539, 544-545, 634 N.Y.S.2d 609 [Sup Ct, NY County 1994], affd 227 AD2d 106, 642 N.Y.S.2d 505 [1st Dept 1996]), this court (Schackman, J.) observed that: For an instrument to operate as an escrow there must be: a) an agreement as to the subject matter and delivery of the same; b) a third-party depositary; c) delivery of the subject matter to a third party conditioned upon the performance of some act or the happening of the event; d) relinquishment by the promisor. Delivery of the instrument or property is necessary in order to have an escrow. Moreover, the delivery must be made with the intent that the condition required to release the same take effect in the future. The delivery must be made to a third person, i.e., the escrow agent (discussed supra), and the delivery must be intended by the promisor as relinquishment of any right of possession and control of the property.