Third-Party Beneficiaries

News & Analysis as of

Utah Court of Appeals Limits Third-Party Beneficiary Contract Claims Against Appraisers, but Recognizes Tort Based Third-Party...

In Lilley v. JPMorgan Chase, et al, 748 UT Adv. Rpt. 48, 213 Utah App. 285, Nov. 20, 2013, the Utah Court of Appeals affirmed an order of the District Court dismissing the Plaintiffs’ breach of contract action against an...more

Allegations Regarding Third-Party Beneficiary Issues and Alter-Ego Status Belong in the First-Filed Venue - Futurewei...

Addressing an appeal of a dismissed action filed second-in-time, the U.S. Court of Appeals for the Federal Circuit affirmed a lower court’s ruling on defendants’ motion to dismiss, finding that additional, related claims for...more

Unintended Third-Party Beneficiaries Created Through Flow Down Clauses in Subcontracts

Construction work done under an agreement between a general contractor and a subcontractor clearly has the property owner—the ultimate recipient of the construction work—in mind. It is somewhat counterintuitive, then, that...more

Who’s On First? Secured Party Not a Third-Party Beneficiary Under Improvement Agreements

It’s fairly common, particularly for new developments on previously undeveloped property, for public entities to require that the developer agree to construct, install or pay for improvements such as roads, sewage, storm...more

Insurers, Beware Of Unnamed 3rd Parties' Hidden Rights

Generally, the language of an insurance policy governs the rights to any proceeds thereunder. However, many courts recognize a number of different theories that may allow third parties not specifically named as insureds in...more

Supreme Court of Washington Holds Carrier Cannot Sue Defense Counsel

In its recent decision in Stewart Title Guar. Co. v. Sterling Sav. Bank, 2013 Wash. LEXIS 769 (Wash. Oct. 3, 2013), the Supreme Court of Washington had occasion to consider whether an insurer can pursue a malpractice action...more

Under Construction - September 2013: Utah’s Economic Loss Rule

In Utah, a plaintiff must generally in be in privity with the “original contractor, architect, engineer or real estate developer” to bring an “action for defective design or construction.” Utah Code Ann. §78 B-4-513(4). This...more

Be Clear if You Want to Have a “Third-Party Beneficiary” in Your Contract

In a prior post, I noted that if you want all disputes between contracting parties to be resolved in one and only one specific forum, it is imperative to expressly state this with great clarity in your agreement. In light of...more

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