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Marine Creek Partners6/13/1996
This is a personal injury case. The issue is whether the parties to a swing set sales contract clearly intended to confer third-party beneficiary status on the users of the swing set. We hold that they did not. Accordingly, we reverse and render judgement that appellees take nothing on their contract claims.
Richard Caldwell, a thirteen-year-old boy, was swinging on the swing set at his apartment complex when the swing came loose from the frame because the chain separated from the "S" hook. Richard broke his ankle in the fall. His parents, Steve and Judy Caldwell, sued the property manager of the complex, Founders Property Management of Austin, Inc., and the owner, Marine Creek Partners, Ltd. for negligence and breach of contract. They based their contract action on a claim of third-party beneficiary status under the swing set sales agreement. Specifically, they claimed that the sales agreement between Marine Creek and the seller of the swing set made users like Richard third-party beneficiaries of the sales contract.
The Caldwells also sued the seller of the swing set, Shade Tree Toys, Inc. Shade Tree in turn cross-claimed against Marine Creek, alleging that Marine Creek had agreed to inspect and supervise the playground equipment, but failed to honor its agreement.
The trial resulted in a jury verdict for the Caldwells and Shade Tree. The jury found that Shade Tree and Marine Creek had agreed (1) that Marine Creek would visually inspect all the moving parts of the swing set every three months and replace them as signs of wear became apparent, and (2) that Marine Creek would provide adult supervision of the swing. The jury found that Marine Creek had breached these promises, which caused damages to Richard Caldwell. The trial court rendered judgement for the Caldwells on their negligence cause of action and for Shade Tree on its breach of contract cause of action. The trial court also rendered judgement for the Caldwells on their contract claims as third-party beneficiaries of the sales contract between Marine Creek and Shade Tree. In connection with this third-party beneficiary claim, the court also awarded attorney's fees to the Caldwells.
The negligence issues have been dismissed and are not before us in this appeal. Also, Marine Creek's appeal against Shade Tree, which came to us as a companion case, No. 2-94-191-CV, has been disposed of by dismissal. Marine Creek here appeals against the Caldwells on the third-party beneficiary recovery and the attorney's fees awarded in connection with it. Marine Creek argues in nine points of error that the contract recovery must fail because the swing set sales agreement will not support a third-party beneficiary claim.
Establishing a contractual third-party beneficiary claim is a difficult burden. This court has previously addressed this difficulty:
"There is a presumption against third-party beneficiary agreements. MJR Corp. v. B & B Vending Co., 760 S.W.2d 4, 12 (Tex.App.--Dallas 1988, writ denied). The intent of the contracting parties is controlling when determining whether parties are third party beneficiaries of a contract. Corpus Christi Bank & Trust v. Smith, 525 S.W.2d 501, 503 (Tex.1975); see also Sowell v. Northwest Cent. Pipeline Corp., 703 F.Supp. 575, 581 (N.D.Tex.1988). In determining intent, courts presume that the parties contracted only for themselves and not for the benefit of third parties, unless the obligation to the third party is clearly and fully spelled out. Corpus Christi Bank & Trust, 525 S.W.2d at 503-04; MJR Corp., 760 S.W.2d at 10. In other words, the party claiming third-party beneficiary status will succeed or fail according to the terms of th
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