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Contracts: Breach Of Contract – Third-Party Beneficiary – Standing

Kansas City Hispanic Association Contractors Enterprise, Inc. v. City of Kansas City (MLW No. 58869/Case No. WD69246 – 11 pages) (Missouri Court of Appeals, Western District, Hardwick, J.)

Where a minority contractor and an association of Hispanic construction companies brought fraud and breach-of-contract claims against the landowner and the city’s tax increment financing commission based on the defendant’s rejection of a construction contract bid, summary judgment for the defendants on the breach of contract claim was proper because the parties’ development agreement stated that the contract did not give minority business enterprises third-party rights to sue for enforcement of the agreement, and since the defendants did not assume a direct obligation to the minority contractors, the plaintiff contractor was an incidental third-party beneficiary that lacked standing to pursue damages for breach of contract and the plaintiff association also lacked associational standing because its member contractor had no enforceable contract rights, and the fraud claim also failed because the minority contractor failed to show the existence of a false representation.

Judgment is affirmed.

Kansas City Hispanic Association Contractors Enterprise, Inc. v. City of Kansas City (MLW No. 58869/Case No. WD69246 – 11 pages) (Missouri Court of Appeals, Western District, Hardwick, J.) Appealed from circuit court, Jackson County, Atwell, J. (Scott D. Hofer, Kansas City, Mo., for appellant) (Steven E. Mauer, Christopher C. Javillonar, Kristi K. Wilhelmy and Allan V. Hallquist, Kansas City, Mo., for respondent).

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