Opinion ID: 1520214
Heading Depth: 1
Heading Rank: 1

Heading: the plaintiff as third-party beneficiary

Text: We turn first to the contract between Smith and Scott, which obligated Smith to secure workers' compensation insurance to cover his employees. After its expiration on January 31, 1983, Scott extended the contract so Smith could clean up the work area on Bald Mountain, but Smith allowed his workers' compensation insurance to lapse in January of 1983, approximately two months before Martin seriously injured his hand. [2] Martin alleges that Smith and Scott entered into their contract for Martin's benefit, and that he should accordingly be entitled to enforce against Scott Smith's obligation to carry workers' compensation insurance. In the proper circumstances we recognize that a third person may sue on a contract to which that person was not a party. Forbes v. Wells Beach Casino, Inc., 307 A.2d 210 (Me.1973). In order for the beneficiary to enforce the contract, however, the promisee must intend that the beneficiary receive the benefit of the promised performance. Restatement (Second) of Contracts § 302(1)(b) (1981). On the facts alleged in Martin's complaint, we reject Martin's contention that Smith and Scott entered into the contract for his benefit. As an employee of Scott, Martin cannot be said to be a beneficiary of the contractual provision obligating Smith to carry workers' compensation insurance for his employees. We do not agree with Martin that Scott was legally obligated to ensure that Martin would be covered by Smith's workers' compensation insurance policy. Accordingly, we conclude that the Superior Court correctly dismissed the third-party beneficiary claim.