This section contains the nature of the case and procedural background.

Chesterfield (D) sold lots in a development with an obligation to install a water system for the entire development. D sold its remaining lots to Sansaria. As part of the consideration for the sale, Sansaria assumed D's obligation to install a water system for the entire development, including that portion already sold via the real estate contracts. The water system was never installed. A declaratory judgment action by D against Sansaria found that Sansaria was in default. Lonsdale and others (P) were assignees of the vendors' interests in that contract. Eventually, those interests became worthless. P then sued D to recover for the failure to install the water system. P also sued D claiming they were third party beneficiaries. A motion to dismiss was granted in favor of D. P appealed. The questions to be answered on appeal are: As a contract assignor is D liable to Ps for its failure to install the water system? Are Ps third party beneficiaries of Sansaria's promise to D to install the system?

The legal issues presented in this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.