 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
AMERICAN TOWERS OWNERS v. CCI MECHANICAL12/20/1996
tent of the contracting parties to confer a separate and distinct benefit must be clear." Id. "A third party who benefits only incidentally from the performance of a contract has no right to recover under that contract." Broadwater v. Old Republic Sur., 854 P.2d 527, 537 (Utah 1993). The Association failed to meet its burden of establishing the requisite intent.
Utah courts have not specifically addressed whether a subsequent condominium purchaser or owners association can assert a third-party beneficiary claim against the general contractor and its subcontractors under their construction contracts. However, courts that have examined this issue have denied third-party beneficiary status.
In Lake Placid Club v. Elizabethtown Builders, Inc., 131 A.D.2d 159, 521 N.Y.S.2d 165 (1987), a condominium owners association brought suit against the builder and the architect of the condominiums for breach of contract and negligence. After noting that the plaintiff had failed to submit any language from the contract demonstrating an intent to confer rights of performance on the ultimate owners of the units, the court stated:
Indeed, there is nothing whatsoever in the record to suggest that the developer had in mind anything but the normal business motive to obtain a construction product of sufficient quality for ready marketability of the condominium units to potential customers. Such a motive is clearly not a basis from which to infer the requisite intent of the developer to bestow performance benefits upon the purchasers of the condominium units, let alone their successors.
Id. 521 N.Y.S.2d at 166 (emphasis added).
Likewise, in 155 Harbor Drive Condominium Ass'n v. Harbor Point, Inc., 209 Ill. App.3d 631, 154 Ill.Dec. 365, 568 N.E.2d 365 (1991), the court affirmed the dismissal of the plaintiff association's third-party beneficiary claim, stating:
With respect to construction contracts . . . " t is not enough that the parties to the contract know, expect or even intend that others will benefit from the construction of the building in that they will be users of it. The contract must be undertaken for the plaintiff's direct benefit and the contract itself must affirmatively make this intention clear."
There is no question that the parties were aware that the building was being built for subsequent purchasers. However, " t is not enough that the parties know, expect or even intend that" such people may benefit or that they are referred to in the contract.
Id. 154 Ill.Dec. at 374-75, 568 N.E.2d at 374-75 (quoting Waterford Condominium v. Dunbar Corp., 104 Ill. App.3d 371, 60 Ill.Dec. 110, 432 N.E.2d 1009 (1982)).
We conclude that the district court properly granted summary judgment on the third-party beneficiary claim against defendants.
ECONOMIC LOSS
The Association's complaint also alleges that defendants negligently failed "to design, construct, supervise and/or inspect the construction, and/or supply materials for the construction of the Property." As a result, the Association alleges that it incurred "substantial and ongoing reparation costs, the substantial diminution of the value of the Property and other special and consequential damages to be proven at trial." The district court held that this claim "fails as a matter of law because the alleged damages are for economic loss, not for injury to persons or
other property." The Association contends that the court erred in its holding and encourages us to overturn two court of appeals opinions, Maack v. Resource Design & Construction, Inc., 875 P.2d 570 (Utah.Ct.App. 1994), and Schafir v. Harrigan, 879 P.2d 1384 (Ut
Page 1 2 3 4 5 6 7 8 9 10 11 12 13 Utah Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|