Action Steel entered into a contract with Systems Builders forthe construction of an addition to a commercial building. SystemsBuilders was the general contractor and agreed to erect a buildingdesigned and manufactured by Varco-Pruden. Part of SystemsBuilders’ contract with Action Steel included an agreement for theparties not to sue each other or any subcontractors or agents ifanother insurance plan was taken out on neighboring properties orthe finished project. During the first winter after construction ofthe addition was complete, only a few months later, a portion ofthe building collapsed. Midwestern insured Action Steel under apolicy issued after completion of the construction. Subsequently,Midwestern sued Varco-Pruden to recover and won. Midwesternappealed. Was Midwestern a third party to the contract such that itcould sue Varco-Pruden? 3 paragrpahs
