City of Yorkville Ex Rel. Aurora Blacktop Inc. v. American Southern Insurance

WILLIAMS, Circuit Judge.

Aurora Blacktop (“Aurora”) filed this lawsuit, claiming that it is entitled to the proceeds of certain bonds issued by American Southern Insurance Company (“American Southern”) in favor of the City of Yorkville. The district court found that Aurora did not have standing to sue, and dismissed the case. We find that Aurora is not a third-party beneficiary to the bonds because there is no language in the bonds suggesting that American Southern’s obligation runs to third parties. We affirm.

I. BACKGROUND

This case started out as three different actions brought against Ocean…