Stewart Title & Trust of Phoenix, an Arizona Corporation v. Janice A. Ordean, and United States of America

This interpleader action concerns $16,-000 deposited in escrow as earnest money for the purchase of a house in Phoenix, Arizona. The transaction fell through when the mortgagee refused to approve assumption of the mortgage by the purchaser. Both purchaser and sellers claimed a right to the earnest money. In addition, the United States claimed the fund under a tax lien filed pursuant to a jeopardy assessment for unpaid federal marijuana excise taxes. The district court granted summary judgment against the United States and approved a stipulation distributing the fund among the sellers, purchaser, broker, and escrow agent. We reverse and remand for further proceedings.

On or about September 1, 1969, Janice A. Ordean signed an agreement with a real estate broker, Tom Jackson & Associates, to purchase a house for $16,000 in cash, deposited as earnest money, and “$30,700.00 apprx. 1st mortgage loan to be assumed by purchasers.” One or two days later Ms. Ordean signed an escrow agreement with the sellers, Dr. & Mrs. Huddle, naming Stewart Title & Trust as the escrow agent. The escrow agree ment specified the purchase price to be the $16,000 earnest money deposited with the…