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Third-Party Beneficiary and Contracts with Architects–Captiva Lake Investments, LLC v. AmeriStructure, Inc.

In Captiva Lake Investments, LLC v. AmeriStructure, Inc., 2014 WL 1227739 (Mo. App., E.D.), we have a client (MPDC) that engaged a firm (KCI, whom we’ll call the prime), in which the prime agreed to provide design and construction services (a design-build contract). The prime engaged a firm (AmeriStructure, whom we’ll call sub) to provide architectural services. The client obtained financing and subsequently defaulted. The clients’ rights under various pertinent contracts allegedly became owned by plaintiff, one Captiva.

The case raises interesting issues about the economic loss rule. We will put those aside for now. The aspect of interest is whether the plaintiff, now standing in the shoes of the initial client, is permitted to maintain a breach of contract claim against the sub for alleged violation of the sub’s agreement with the prime. Here’s the part of the brief for the sub addressing third-party beneficiary status:

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