Legal Question in Real Estate Law in California

You can sue anyone for anything. All you need is a complaint and a filing fee of between $250 and $450.00. Winning your lawsuit is something all together different. Given your fact pattern it is hard to imagine how an escrow company could be liable for any damages you may have incurred by reason of your spouse's purchase or her failure to tell you what she was doing.

I spent the better part of a decade as in-house litigation counsel for the parent of Fidelity National Title and Chicago Title (among others). We were constantly being sued by people in situations like yours. If they were lucky they survived demurrer. They never survived summary judgment. If you find an attorney who tells you that you have a case, they are trying to steal your money.

If there is anyone to sue, it would be one or both of the principals to the transaction -- either the third party or your own spouse. Not the escrow company. If the transaction is sufficiently corrupt (in your opinion) that you may want to involve your spouse in litigation, in which you are on opposing sides, then take all your facts to an attorney who handles both real estate and family law matters. The entire situation requires more in-depth fact-finding than can be done on line. You may have a case, but it isn't vs. the escrow holder.