Tag Archives: subcontractor

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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Duty to Obtain Insurance and Third-Party Beneficiary Status–Drury Co. v. Jackson R-2 School District

In the ongoing saga of a governmental entity’s claims a subcontractor cannot sue the governmental entity for failure to obtain insurance covering the subcontractor (discussed previously concerning a brief at 2013 WL 6169464), we now have a brief on behalf of the governmental entity.  Drury Co. v. Jackson R-2 School District, 2014 WL 462916 (Mo. Ct. App., E.D. Jan. 13, 2014). The brief discusses a claim brought by a subcontractor against the governmental entity.  The basis for the claim on which we will focus is the entity entered into a written contract with a prime contractor.  According to the subcontractor’s brief, the written contract provides:

[Respondent] shall purchase and maintain… insurance written on a builder’s risk “all-risk” or equivalent policy… [that] shall include the interests of the. . Subcontractors… in the Project.

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