First Bank v. Brumitt

A plaintiff who was not a party to a written contract was not permitted to enforce the agreement as a third-party beneficiary.DTSG, Ltd. filed suit against First Bank. Richard Brumitt intervened as an additional plaintiff, alleging that he was a third-party-creditor beneficiary of an agreement entered into by DTSG and First Bank. The jury found First Bank liable to both DTSG and Brumitt for breach of contract and for negligent and grossly negligent misrepresentation. The trial court entered judgment based on the jury’s verdict. The Supreme Court reversed the court of appeals’ judgment, holding (1) the agreement between DTSG and First Bank was unambiguous and did not make Brumitt a third-party beneficiary; and (2) the trial court erred by submitting that issue to the jury and by instructing the jury that it could consider extrinsic evidence to add a third-party-beneficiary term to the unambiguous written agreement. The court remanded the case for further consideration of Brumitt’s claims alleging negligent and grossly negligent misrepresentations. View "First Bank v. Brumitt" on Justia Law