Norton v. First Federal Savings

624 P.2d 854 (1981)

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Norton v. First Federal Savings

Arizona Supreme Court
624 P.2d 854 (1981)

SC

Facts

Norton (plaintiff) contracted to buy three subdivision lots from Clyde Hutcheson. Under a city ordinance, Hutcheson was required to post a bond to guarantee off-site improvements on the land. Hutcheson posted the performance bond with First Federal Savings (the bank) (defendant) but failed to make the off-site improvements. Norton sued the bank to recover as a third-party beneficiary under the performance bond. The trial court granted the bank summary judgment, finding that Norton was not a third-party beneficiary of the bank’s contract with Hutcheson. Norton appealed.

Rule of Law

Issue

Holding and Reasoning (Gordon, J.)

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