Opinion ID: 3038699
Heading Depth: 4
Heading Rank: 2

Heading: The City’s Liability

Text: Defendants contend plaintiffs cannot recover against the city as a matter of law because the contractual obligations in the 1988 Agreement ran only between the Redevelopment Authority and the city. Contending only the Redevelopment Authority promised to repair plaintiffs’ homes, defendants argue the Redevelopment Authority was the only party responsible to plaintiffs under the 1988 Agreement.6 But the city assumed responsibility to repair plaintiffs’ houses in the 1986 Agreement. 6 Defendants cite no case law, referring instead to the Restatement (Second) of Contracts § 304, which states: “A promise in a contract creates a duty in the promisor to any intended beneficiary to perform the promise, and the intended beneficiary may enforce the duty.” 18 It then delegated that duty to the Redevelopment Authority in the 1988 Agreement, and promised to fund the repairs. Before payment, the Redevelopment Authority was required to provide the city with bills and vouchers. Plaintiffs were third-party beneficiaries of the 1988 Agreement, and may properly assert claims based on the 1988 Agreement against both the city and the Redevelopment Authority. Accordingly, we agree with the District Court that the 1988 Agreement was a valid basis for the jury’s contract award against the city.