LONSDALE v CHESTERFIELD
662 P.2d 385 (1983)
NATURE OF THE CASE: This was a suit over certain real estate contracts by the assignees
of those contracts. Lonsdale (P) sought review of a decision affirming the dismissal of P's
action to recover for Chesterfield's (D) failure to install a water system, holding that D's
assignor's obligation did not run to P and P were not third party beneficiaries.
FACTS: Chesterfield (D) sold lots in a development with an obligation to install a water
system for the entire development. D sold its remaining lots to Sansaria. As part of the
consideration for the sale Sansaria assumed D's obligation to install a water system for the
entire development, including that portion already sold via the real estate contracts. The
water system was never installed. A declaratory judgment action by D against Sansaria found
that Sansaria was in default. Lonsdale and others (P) were assignees of the vendors'
interests in that contract. Eventually those interests became worthless. P then sued D to
recover for the failure to install the water system. P also sued D claiming they were third
party beneficiaries. A motion to dismiss was granted in favor of D. P appealed. The
questions to be answered on appeal are: As a contract assignor is D liable to Ps for its
failure to install the water system? Are Ps third party beneficiaries of Sansaria's promise
to D to install the system?
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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