Case 7.5: Emmelyn Logan-Baldwin v. L.S.M General Contractors, Inc., 942 N.Y.S.2d

Question

Case 7.5: Emmelyn Logan-Baldwin v. L.S.M General Contractors, Inc., 942 N.Y.S.2d 718 7 (N.Y. 2012) (p. 227) Facts: Logan-Baldwin and other owners (collectively Logan-Baldwin) contracted with L.S.M General Contractors (LSM) to renovate a historic residence. LSM subcontracted to Henry Isaacs Home Remodeling (Isaacs) to perform roofing work as part of the renovations. Isaacs then contracted with Brewster to install a new roof on the residence. Soon after the roof was completed it showed signs of leaking and it became clear that the roof was not installed correctly. LSM and Isaacs attempted to fix the problems, but were unsuccessful and subsequently abandoned the project. Logan-Baldwin hired other contractors to fix the problem and sued LSM, Isaacs, and Brewster for breach of contract. Isaacs defended that he did not directly contract with Logan-Baldwin and therefore cannot be sued for breach of contract. 12 Issues: Does Logan-Baldwin have contract rights over Isaacs as an intended third-party beneficiary? Ruling: Yes. Logan-Baldwin, as the owners of the house, were logically the intended beneficiary of the home renovations and have rights as a third party beneficiary. Since they were intended third-party beneficiaries, the court ruled that Logan-Baldwin had the right to maintain a breach of contract claim against Isaacs

Explanation / Answer

1. No, an intended beneficiary does not have to be named in a contract to have rights to enforce the contract. A third party beneficiary stands to benefit from the execution of a contract even though they are not actually a party to the contract. There are certain standards that need to be met for the third party beneficiary to have legal rights to enforce a contract or to share in the proceeds.

2. According to the court’s ruling, Logan-Baldwin had rights as a bird party beneficiary. This gave Logan-Baldwin the right to sue for breach of contract.

3. No, Philip does not have cause of action against any of the defendants.

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