Pierce Associates, Inc. v. Nemours Foundation
United States Court of Appeals for the Third Circuit
865 F.2d 530 (3d Cir. 1988)
Nemours (plaintiff) hired general contractor Gilbane to build a hospital interior, with contract language expressly stating no contractual relationship existed between Nemours and any subcontractor; Gilbane subcontracted mechanical work to Pierce Associates (defendant) under a subcontract that likewise incorporated that same disclaimer and stated Pierce's obligations ran to Gilbane, not Nemours. After the project finished 21 months late amid disputes, Nemours sued Pierce directly on a third-party-beneficiary theory and won at the district court; Pierce appealed.
Whether a project owner may maintain a breach-of-contract action against a subcontractor as a third-party beneficiary absent language in the subcontract expressing intent to confer that benefit on the owner.