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ARTICLE · 29 MAY 2003

Plaintiff Not a Beneficiary Under Lease Agreement

Secrest Wardle Lynch Hampton Truex & Morley
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United StatesReal Estate and Construction
Cleo Fekaris
Cleo Fekaris

The Michigan Supreme Court has held that a private citizen was not an intended third party beneficiary of a lease contract between a city and a landowner. As such, she could not pursue a third party beneficiary claim for injuries she sustained when she tripped and fell on a crack in the sidewalk. Brunsell v. City of Zeeland, No. 120051 (Mich. Sept. 24, 2002).

The City of Zeeland leased property, including a sidewalk, from First Michigan Bank & Trust Company. The lease agreement provided that the sidewalk was among the "improvements" that the City was authorized to construct. The lease also provided: "The Lessee [the city] shall repair the improvements which it constructs on the premises as may be necessary for the public safety." Based on this provision in the lease, the Plaintiff argued that she was an intended third party beneficiary of this contract, and that the Defendant City owed her a contractual duty.

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