Northwest Airlines leased space in the terminal building at the Portland Airport from the Port of Portland
Northwest Airlines leased space in the terminal building at the Portland Airport from the Port of Portland. Crosetti entered into a contract with the Port to furnish janitorial services for the building, which required Crosetti to keep the floor clean, to indemnify the Port against loss due to claims or lawsuits based upon Crosetti’s failure to perform, and to provide public liability insurance for the Port and Crosetti. A patron of the building who was injured by a fall caused by a foreign substance on the floor at Northwest’s ticket counter brought suit for damages against Northwest, the Port, and Crosetti. Upon settlement of this suit, Northwest sued Crosetti to recover the amount of its contribution to the settlement and other expenses on the grounds that Northwest was a third-party beneficiary of Crosetti’s contract with the Port to keep the floors clean and, therefore, within the protection of Crosetti’s indemnification agreement. Will Northwest prevail? Why or why not?
Evidences to support the arguments are as follows:
The court held that only two forms of third-party beneficiaries are entitled to recovery; additionally, Airlines N was not a beneficiary of the borrower a sit was not a borrower of Individual P because its lease did not include any provision to pay Individual P. Airlines N was a beneficiary of the donor because there was no proof of any intention of Individual P to make a donation to Airlines N to confer upon in its contract with Individual C. Airlines N was, at best, an accidental winner and had little right to recovery as well.
If in the given scenario, the Airlines N was not a borrower and would prevail, it has the full right to prevail and recover. Additionally, if Individual C has a proof regarding the intention of Individual P related to donation, then Airlines N may prevail.
The following may be the two scenarios:
Airlines N may not prevail.
Airlines N may prevail.