Who Can Sue Whom?

The assignment requires students to research a legal issue related to construction contracts and subcontracting in New York. Xiaoqi hires Star Contractors as her general contractor, which subcontracts with Jack's Plumbing Co. to do the plumbing work on her house. However, Jack's does inferior work that causes $50,000 in damages, and Xiaoqi wants to sue Jack's for breach of contract. The issue is whether Xiaoqi can sue Jack's directly as an intended third-party beneficiary or if she needs to go through Star first.

Name___________________
MANDATORY LEGAL RESEARCH ASSIGNMENT
OWNERS, CONTRACTORS AND SUBCONTRACTORS – WHO CAN
SUE WHOM?
Directions: Answer all questions below. Perform whatever legal research is necessary
to find the answer. Follow all instructions. Type or print neatly. This assignment may
be done individually. Successfully completing this assignment will result in TWO
POINTS being added to your final numerical score. FAILURE TO DO THIS
ASSIGNMENT WILL RESULT IN TWO POINTS BEING SUBTRACTED FROM
YOUR FINAL AVERAGE.
Due Date: DECEMBER 4, 2016, IN CLASS. Hardcopies Only – No E-mails. All
papers for this assignment are to be stapled together as one document. You must
obtain your case using Westlaw.
FACTS
Xiaoqi hires Star Contractors, Inc. as her general contractor to build a house on land that
she owns in Rochester, New York. Star subcontracts with Jack’s Plumbing Co. to do the
plumbing work on the house. Jack’s does inferior work that causes $50,000 in damages
and Xiaoqi now wants to sue Star and Jack’s for breach of contract. However, Star has
since filed for bankruptcy protection and so suing Star will not produce any money.
Xiaoqi sues Jack’s for breach of contract, alleging that she is an intended third party
beneficiary of the subcontract, which would give her the right to sue Jack’s. Jack’s
makes a motion for summary judgment, seeking a judgment dismissing the case on the
merits, arguing that Xiaoqi is not an intended third party beneficiary (lack of privity) and
therefore she has no right to sue Jack’s. Assume that the written subcontract between
Star and Jack’s did not specifically say anything about third party rights. Xiaoqi now
wants to know whether Jack’s motion will be granted or denied.
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ISSUE TO BE RESEARCHED
The issue in this case may be stated a couple of different ways, as shown below:
Generally, under New York law, in a construction contract, is an owner an intended third
party beneficiary of a subcontract, absent specific words to that effect?
Under New York law, where a general contractor hires a subcontractor to do work, and
where the subcontractor fails to perform his contractual duties, is the owner an intended
third party beneficiary who can sue the subcontractor directly? [In this case, Xiaoqi, the
owner, would be the third party.]
QUESTIONS TO BE ANSWERED
_____ 1. In what New York trial court must Xiaoqi’s suit be filed?
Name of court: Supreme Court of the State of New York
_____ 2. In general, what will be the likely outcome of Jack’s motion for summary
judgment?
a) The motion will be granted - Xiaoqi’s case will be dismissed on the
merits
b) The motion will be denied - Xiaoqi’s case will not be dismissed on the
merits
Citation of case that answers this question:
Logan-Baldwin v LSM Gen. Contrs., Inc. (2011 NY Slip Op 21005)
" the owner has no right against the subcontractor, in the absence of clear words to
the contrary. He is neither the creditor beneficiary nor done beneficiary…the
benefit he receives from performance of subcontractor is merely incidental”
Attach(!!!) the above-cited case, with the rule highlighted.
Note: The rule is usually only one or two sentences long. You will lose some or all
points if you fail to attach the case, fail to highlight the rule, or highlight too many
sentences. Stay focused and on-point. Do not cite a case that has been reversed. Also,
the case should be binding precedent in Rochester, New York.
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Note: Question 2 is where you gain points. Question 1 is so basic that if you fail to
answer it correctly, you will lose points.
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