Answered Essay: 0.1 Intended or Incidental Beneficiary The Phillies, L.P., the owner of the Philadelphia Phillies

10.1 Intended or Incidental Beneficiary

The Phillies, L.P., the owner of the Philadelphia Phillies professional baseball team (Phillies), decided to build a new baseball stadium called Citizens Bank Park (the Project). The Phillies entered into a contract (Agreement) with Driscoll/Hunt Joint Venture (DH), whereby DH would act as the construction manager of the Project. In that capacity, DH entered into multiple contracts with subcontractors to provide material and services in constructing the Project. One such subcontractor was Ramos/Carson/DePaul, Joint Venture (RCD), which was hired to install concrete foundations for the Project. The Project was beset with numerous delays and disruptions, for which RCD claimed it was owed additional compensation from DH and the Phillies. Subcontractor RCD sued the Phillies to recover the compensation, alleging it was an intended beneficiary to the Phillies–DH Agreement, thus giving it rights to recover compensation from the Phillies. The Phillies argued that RCD was merely an incidental beneficiary to the Phillies–DH Agreement and could not recover compensation from the Phillies. Is RCD an intended or an incidental beneficiary of the Phillies–DH Agreement? Ramos/Carson/DePaul, a Joint Venture v. The Phillies, L.P., 2008 Phila. Ct. Com. Pl. Lexis 282 (Common Pleas Court of Philadelphia County, Pennsylvania, 2008)

Expert Answer

Answer

Ramos/Carson/DePaul (RCD) is an incidental beneficiary of the Phillies DH agreement. It is not an intended beneficiary for the Phillies agreement because it was held that the RCD was just an incidental beneficiary. As, DH agreement was the one which was answerable to RCD. RCD didn’t provide any proof which stated that Phillies as well as DH were planned to provide RCD with the demand payment openly. Phillies as well as DH made out no evidence which stated any advantage to RCD to make an agreement’s payment requirements. RCD couldn’t able to show that it was thirdly intended and RCD break the claim of the contract when the Phillies was discharge. That is why the court stated that the RCD was not an intended beneficiary and that is why there is no right to sue Phillies.

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