Opinion ID: 1444079
Heading Depth: 1
Heading Rank: 1

Heading: may an injured member of the public bring an action to recover directly against a public liability insurer as a statutory third party beneficiary under the oklahoma competitive bidding act?

Text: ¶ 8 Plaintiffs urge that the insurance requirement contained in the Oklahoma Competitive Bidding Act is for the benefit of members of the public who might be injured by those working on a government project. They conclude that this Act, combined with the DOT regulations, Standard Specifications for Highway Construction, gives them beneficiary status, thus permitting them to sue the insurer directly. They also claim that as a judgment creditor of Carpenter they may step into his shoes to enforce his rights under the insurance contract, as he should have been a named insured. ¶ 9 Aetna defends by claiming that an injured member of the public cannot bring suit against a liability insurer directly unless there is a statute which expressly confers that right. Aetna asserts that neither the Competitive Bidding Act nor the DOT regulations afford that right. ¶ 10 The Competitive Bidding Act of 1974, 61 O.S.1991 § 101 et seq. provides that [n]o work shall be commenced until a written contract has been executed and all required bonds and insurance have been provided by the contractor to the awarding public agency. Section 113 states that certain items must be provided by the contractor to the awarding agency, including [p]ublic liability and workers' compensation insurance during construction in reasonable amounts. The insurance requirement is mandatory; it cannot be waived. Carpet City, Inc. v. Stillwater Municipal Hospital Authority, 1975 OK 75, 536 P.2d 335, 338 (Okla.1975). The purpose of the Act is to protect the taxpaying public, and should be interpreted to further the public's interest. Rollings Const. v. Tulsa Metro. Water, 1987 OK 95, 745 P.2d 1176, 1177-8 (Okla.1987). However, no provision in the Act expressly creates a right of action for an injured third party. Further, no provision in the Act gives third party beneficiary status to an injured member of the public. ¶ 11 The Department of Transportation has adopted standards to govern projects such as the one in this case. As long as these administrative standards do not conflict with a statute they have the force and effect of law. Texas Oklahoma Express v. Sorenson, 1982 OK 113, 652 P.2d 285 (Okla.1982) (administrative rules have the force and effect of law); Arkansas Louisiana Gas Co. v. Travis, 1984 OK 33, 682 P.2d 225 (Okla.1984) (if there is an irreconcilable conflict between a statute and a rule, the statute must prevail). Section 107.13 of the Standards for Highway Construction, 1988, states as follows: Third Party Beneficiary Clause. It is specifically agreed by and between the parties executing this Contract, that it is not intended by any of the provisions of any part of the Contract to create in the public or any member thereof any third party  beneficiary provisions or to authorize anyone not a party to this Contract to maintain a suit for personal injuries or property damage pursuant to the terms or provisions of this Contract. (emphasis added) ¶ 12 The Competitive Bidding Act does not address this subject, but the Standards for Highway Construction does, and expressly negates any such right. This regulation, having the force and effect of law, governs the parties' rights in this circumstance. Hence, we answer the first question posed by the Federal Court in the negative. An injured member of the public is not a statutory third party beneficiary to a public liability insurance contract under the Oklahoma Competitive Bidding Act. However, we do note that third party beneficiary status is unnecessary if the action is one in garnishment. See Nogales Ave. Baptist Church v. Peyton, 1978 OK 36, 576 P.2d 1164 (Okla. 1978) (a garnishment proceeding may be had by a judgment creditor against an insurer debtor); Tipton v. Bready, 229 F.Supp. 301 (D.C.Okla.1964).