Smith v. King

CLARK, Judge.

In North Carolina, “[i]t has long been established that a third party, for whose benefit a contract has been made, may maintain an action for breach of that contract.” Equipment Co. v. Smith, 292 N.C. 592, 595, 234 S.E. 2d 599, 601 (1977). Several cases have approved application of a third-party beneficiary analysis to allow action by a bailor against a bailee’s insurance company. See Distributing Co. v. Insurance Co., 214 N.C. 596, 200 S.E. 411 (1939); Ingram v. Insurance Co., 258 N.C. 632, 129 S.E. 2d 222 (1963); Annot., 64 A.L.R. 3d 1207 (1975). The North Carolina cases…