Cain v. Price

by
One party’s material breach of a contract releases the non-breaching party’s contractual obligation to a third-party beneficiary.The promisor in this case failed to fulfill its contractual obligations to Appellants under a settlement agreement. Appellants sued the promisor and six of its officers, including Respondents. Respondents, the third-party beneficiaries, claimed that the settlement agreement released them from liability for the promisor’s actions and precluded Appellants’ suit. The district court granted summary judgment to Respondents. The Supreme Court reversed, holding that the promisor’s material breach of the settlement agreement released Appellants from their obligation under that agreement not to sue the promisor’s officers. Therefore, the Court reversed the district court’s grant of summary judgment and remanded the matter to the district court for further proceedings. View "Cain v. Price" on Justia Law