Vogan v. Hayes Appraisal Associates, Inc.

The Vogans (plaintiffs) obtained a construction loan, and the lender contracted with Hayes Appraisal (defendant) to monitor construction progress and authorize disbursements to the contractor accordingly. Hayes reported inflated progress, causing over-disbursement relative to actual construction, leading to cost overruns and additional loans for the Vogans, who as intended beneficiaries of the monitoring contract sued for the resulting damages.

Whether an intended third-party beneficiary of a contract may recover damages for special circumstances that arise during performance of the contract.