Opinion
0749-11.
Decided July 7, 2011.
Plaintiff brought this small claims proceeding alleging three hundred thirty two dollars ($332.00) in damages caused by defendant's loss of his property. It is uncontested that the plaintiff ordered a digital camera from Fingerhut on December 15, 2010 and paid for same in full. The camera was shipped via Fedex Ground and plaintiff never received it.
Defendant showed proof of delivery (business record) on December 20, 2010. It was allegedly signed for by one T. Jame at the address the package was shipped to by defendant.
Plaintiff has standing to sue as a third party beneficiary to the contract entered into by the shipper (Fingerhut) and carrier (Fedex Ground). In order to recover as third-party beneficiary to a contract, plaintiff must establish: "(1) the existence of a valid and binding contract between other parties, (2) that the contract was intended for their benefit, and (3) that the benefit to them is sufficiently immediate to . . . indicate the assumption by the contracting parties of a duty to compensate them if the benefit is lost" ( Mandarin Trading Ltd. v Wildenstein , 16 NY3d 173 (2011) (citation omitted); see also Saratoga Schenectady Gastroentrology Associates, P.C., et al. v. Bette Cring, LLC, 921 N.Y.S.2d 393 (2011)). Under New York law, a third party beneficiary is entitled only to those rights which the original parties to the contract intended the third party to have ( Republic of Iraq v. ABB AG, et al. WL 781192 (2011). Accordingly, as a third party beneficiary, the plaintiff has no rights beyond those stated in the contract.
In the case at bar the shipper declared no value when entering into the contract with the carrier. As a result, the limit of liability is one hundred dollars ($100.00) pursuant to the shipping contract.
Judgment for plaintiff in the sum of one hundred dollars ($100.00). The above complies with this Courts statutory charge to do substantial justice between the parties.
The above constitutes the Decision and Order of the Court.