Justia Iowa Supreme Court Opinion Summaries

The Iowa Department of Transportation (IDOT) hired a general contractor, which was a “targeted small business” (TSB), for two public construction contracts. The general contractor subcontracted with three subcontractors, which the general contractor failed to pay in full. The subcontractors sued IDOT and the general contractor. The district court granted IDOT’s motion to dismiss and entered default judgments against the general contractor, ruling that, in absence of a bond, the subcontractors’ remedy against the state was limited to the funds IDOT retained on its contract with the general contractor. The subcontractors appealed, arguing that Iowa Code 573.2, the statute that governs subcontractors’ remedies for unpaid work on public improvements when the state waives the performance bond for a general contractor that is a TSB, allowed broader recovery rights and required IDOT to step into the TSB’s shoes to pay the balances owed them. The Supreme Court reversed, holding that section 573.2 operates as a waiver of sovereign immunity that allows subcontractors to recover from IDOT the unpaid balances TSBs owe for work on public improvements. Remanded. View "Star Equip., Ltd. v. State" on Justia Law

Defendant pleaded guilty to attempted murder and was sentenced to twenty-five years in prison. Defendant appealed, claiming his counsel provided ineffective assistance because counsel permitted him to plead guilty without an established factual basis for each element of the crime. The court of appeals vacated Defendant's conviction and sentence and remanded the case, concluding that the guilty plea colloquy failed to establish a factual basis for the underlying charge. The Supreme Court vacated the court of appeals' decision and affirmed the conviction and sentence of the district court, holding that the minutes of testimony provided an adequate factual basis to support Defendant's guilty plea. View "State v. Finney" on Justia Law

The Attorney General brought an action against Corporation, which sold memberships in buying programs giving members the option to purchase various goods and services at discounted rates, alleging violations of the Buying Club Membership Law (BCL) and the Iowa Consumer Fraud Act (CFA) and seeking civil penalties for consumer frauds committed against the elderly. The district court concluded (1) many of Corporation's marketing and sales practices violated the BCL and CFA; (2) Corporation did not commit consumer frauds against the elderly; and (3) application of the BCL to Corporation's solicitation practices did not violate the dormant Commerce Clause. The court awarded more than $25 million in consumer reimbursement, civil penalties, and attorney fees. The Supreme Court affirmed in part, reversed in part, and modified, holding (1) Corporation's telemarketing and Internet practices violated the CFA; (2) Corporation's solicitations and its memberships offering one or more discount features were subject to the terms of the BCL; (3) application of the BCL to Corporation's solicitations did not violate the dormant Commerce Clause; (4) affirmed the reimbursement award for BCL violations as modified; and (5) reversed the ruling that the State was not entitled to civil penalties for consumer frauds committed by the elderly.View "State ex rel. Miller v. Vertrue, Inc." on Justia Law

Plaintiff was a construction supply business that entered into a dispute with City over a project upgrading City's wastewater treatment facility. After City excluded Plaintiff from its list of preapproved material suppliers, Plaintiff filed this action seeking a declaration that City's preapproval process violated Iowa's public construction bidding statute and constitutional guarantees of equal protection and due process. In addition, Plaintiff sought relief under the Open Records Act, claiming that City's significant delay in responding to Plaintiff's open records request violated the Open Records Act. The district court rejected each of Plaintiff's claims. The Supreme Court (1) affirmed the judgment dismissing Plaintiff's public biding and constitutional claims, as (i) Plaintiff lacked standing to challenge City's preapproval process, and (ii) Plaintiff's constitutional claims failed on the merits; and (2) reversed the district court's ruling denying Plaintiff relief under the open records law, as City's substantial and inadequately explained delay in responding to Plaintiff's open records request violated the law. View "Horsfield Materials, Inc. v. City of Dyersville" on Justia Law

In an underlying termination of parental rights proceeding, the juvenile court concluded that while Mother, who was indigent, did not qualify for appointed counsel under Iowa Code 600A.6A, payment of the attorney’s fees at public expense was constitutionally required. The court subsequently appointed an attorney to represent Mother in the proceeding, and ultimately, Mother’s parental rights were terminated. The juvenile court ordered the State Public Defender to pay for the court-appointed counsel, but the Defender denied payment on the ground that the fees did not qualify for payment from the indigent defense fund. The appointed attorney sought judicial review, and the juvenile court subsequently ordered the Iowa Department of Management to pay the fees. The Defender and Department appealed the juvenile court’s appointment of counsel at public expense. The Supreme Court treated the appeal as a petition for an original writ of certiorari, which it granted as to the Department. The Court then annulled the writ, concluding that the juvenile court correctly appointed counsel at public expense to represent Mother in the contested termination proceeding under chapter 600A. View "Crowell v. State Pub. Defender" on Justia Law

Defendant was charged with and convicted of operating a motor vehicle while under the influence. Defendant appealed, contending that the district court erred in denying his motion to suppress the evidence obtained from the stop of his vehicle after the police received an anonymous tip reporting a drunk driver. The Supreme Court reversed and suppressed all evidence seized from the stop, holding that the investigatory stop of Defendant was illegal under the Fourth Amendment, as a bare assertion by an anonymous tipster reporting drunk driving, without relaying to the police a personal observation of erratic driving or other facts to establish the driver is intoxicated, does not provide reasonable suspicion to stop a vehicle. Remanded for a new trial. View "State v. Kooima" on Justia Law

Plaintiff formed a contract with Imperial Premium Finance with regard to a financing arrangement for life insurance. Imperial later assigned its interest in the arrangement to Defendant, a limited partnership with its principal place of business in California. Plaintiff filed a petition for declaratory judgment in Iowa, claiming that the contract was not valid. The district court granted Defendant’s motion to dismiss for lack of personal jurisdiction, concluding that that contacts of Imperial, the assignor, did not impute to Defendant, the assignee. The Supreme Court reversed, holding (1) an assignor’s contacts with Iowa are not automatically imputed to the assignee for purposes of obtaining personal jurisdiction over the assignee, but this assignee is subject to personal jurisdiction in Iowa based on its own contacts with this forum through the contractual relationships it assumed by the assignment; and (2) Defendant in this case did have the required minimum contacts to subject Defendant to personal jurisdiction in Iowa. Remanded. View "Ostrem v. PrideCo Secure Loan Fund, LP" on Justia Law

Plaintiffs were employees of limited liability corporations located in Iowa. Plaintiffs filed lawsuits against the businesses and certain individuals affiliated with the businesses, alleging that Defendants violated the Iowa Civil Rights Act (ICRA) by engaging in sexual harassment, sex discrimination, and retaliation. The lawsuits demanded punitive damages. Defendants moved to strike the claim for punitive damages. The district court granted the motion, concluding that punitive damages were not available under the ICRA. Plaintiffs sought, and the Supreme Court granted, interlocutory appeal. The Court then affirmed the district court, holding that an award of punitive damages is not permitted under the ICRA.View "Ackelson v. Manley Toy Direct, LLC" on Justia Law

After a jury trial, Defendant was convicted of escape. Defendant appealed, arguing, among other things, that the district court abused its discretion when it refused to instruct the jury that the crime of absence from custody was a lesser included offense of escape. The court of appeals denied each claim raised by Defendant and affirmed. The Supreme Court vacated the decision of the court of appeals and reversed the judgment of the district court, holding that the crime of absence from custody is a lesser included offense of the crime of escape. Remanded for a new trial. View "State v. Miller" on Justia Law

The Iowa Department of Natural Resources (DNR) revoked Plaintiffs' hunting licenses after finding that each Plaintiff did not meet the criteria to claim resident status under Iowa Code chapter 483A and that establishing residency solely for the purposes of hunting was improper under section 483A.1A(10). In each case, an administrative law judge affirmed the DNR's decision. The district court affirmed the agency action, concluding (1) to be considered a landowner for the purposes of obtaining landowner hunting privileges, a person must be a resident of Iowa, and (2) the ALJ's findings that Plaintiffs were not Iowa residents were supported by substantial evidence, notwithstanding the facts and each owned land in Iowa and paid taxes in Iowa. The Supreme Court affirmed, holding (1) the decisions of the ALJs in Plaintiffs' respective cases were supported by substantial evidence; and (2) Iowa's licensing scheme, which distinguishes between resident landowners and nonresident landowners, is not an unconstitutional impairment of privileges protected by the Privileges and Immunities Clause. View "Democko v. Iowa Dep't of Nat. Res." on Justia Law