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Canfora v. Coast Hotels and Casinos10/20/2005
unambiguous contract to pay back "the benefits provided," Coast Hotels is entitled to enforce this provision of the insurance plan.
Nonsignatory Beneficiaries
Chris and Alex argue that the district court erred in binding Chris and Alexis, two nonsignatories, to the terms of the insurance plan. We disagree.
Because Alexis is not a named party on this appeal, we address solely whether Chris was bound by the terms of the insurance plan. Generally, an intended third-party beneficiary is bound by the terms of a contract even if she is not a signatory. Whether an individual is an intended third-party beneficiary, however, depends on the parties' intent, "gleaned from reading the contract as a whole in light of the circumstances under which it was entered."
In the instant case, Chris was an intended third-party beneficiary. In addition to being listed as an intended beneficiary of the plan, all her medical expenses arising from the 1999 accident were covered by Coast Hotels. The fact that she did not sign the contract herself is irrelevant. Thus, the district court did not err by binding Chris to the terms of the insurance plan.
CONCLUSION
We hold that the Canforas did not waive their rights to appeal the district court's order adjudicating Coast Hotels' subrogation lien. We also conclude that the district court properly adjudicated Coast Hotels' subrogation lien rights. Additionally, the Canforas are bound to the terms of the subrogation clause since the language is unambiguous. Further, the district court correctly declined to apply Breen since the Canforas entered into an unambiguous contract to pay back the plan and were also made whole by the settlement. Finally, the district court did not err in binding Chris to the terms of the insurance plan since Chris was a named beneficiary. Therefore, we affirm the district court's order.
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