Law for Business 12th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 4

Audler filed a class action lawsuit based on a determination that CBC Innovis classified their property as being outside a Special Flood Zone Hazard Area (SFHA). The Flood Disaster Protection Act requires flood insurance for secured loans on homes within a SFHA, and CBC provides that information to the lenders. Audler's and the others' property was flooded by hurricane Katrina. They alleged they did not have flood insurance because of CBC's designation and sued under the contracts between the lenders and CBC, asserting they were intended beneficiaries of those contracts. Is this correct? Explain.