Justia Iowa Supreme Court Opinion Summaries

The case involves $14,100.00 in cash seized by the Linn County Sheriff’s Office from a Bitcoin ATM kiosk in Cedar Rapids during a fraud investigation. Bitcoin Depot, the owner of the ATM, sought the return of the seized funds, while Carrie Carlson, the customer who deposited the money, also filed a competing claim for the return of the funds. Carlson had deposited the money into the ATM and received Bitcoins in return, which were transferred to a wallet as directed by a scammer.The Iowa District Court for Linn County held a hearing on the competing claims and ordered the return of the seized funds to Carlson. The court reasoned that Carlson was a victim of fraud and likened the situation to recovering stolen property from a pawnbroker. The court also considered the transaction a "smart contract" and concluded that Bitcoin Depot had reason to know of potential duress due to the warning provided on the ATM.The Iowa Supreme Court reviewed the case de novo and concluded that Bitcoin Depot had the greater right to possession of the seized funds. The court found that Bitcoin Depot acted in good faith and without reason to know of Carlson’s duress. The court rejected the district court’s analogy to pawnbrokers and the characterization of the transaction as a smart contract that inherently involved knowledge of duress. The court held that Carlson did not meet her burden to show that Bitcoin Depot had reason to know of her duress, and thus, the contract was not voidable.The Iowa Supreme Court reversed the district court’s order and remanded the case with instructions to return the seized funds to Bitcoin Depot. View "In the Matter of Property Seized for Forfeiture from Bitcoin Depot Operating, LLC v. Carlson" on Justia Law

In February 2014, Clint Shalla entered into a debt settlement agreement with Greg and Heather Koch to prevent a foreclosure on his farm. The Kochs agreed to purchase the farm and give Clint an exclusive option to repurchase it by August 15, 2015, with written notice and financing commitment. Clint's wife, Michelle, was not a party to the agreement but conveyed her marital interest in the property. Clint sought financing from Christopher Goerdt, then president of Peoples Trust and Savings Bank, who allegedly agreed to secure financing. Clint missed the option deadline, and the Kochs later agreed to sell the farm for a higher price. Goerdt, who had moved to County Bank, secured financing for the Shallas, but was later found to be involved in fraudulent activities.The Iowa District Court for Washington County granted partial summary judgment in favor of Peoples Bank, dismissing Michelle's fraudulent misrepresentation claim. The court later reconsidered and dismissed the Shallas' negligence and fraudulent misrepresentation claims, citing Iowa Code section 535.17. The court ruled in favor of County Bank in the foreclosure action and found Goerdt liable for conversion. The Shallas appealed, and the Iowa Court of Appeals affirmed the district court's judgment, with a dissent on the application of the statute of frauds.The Iowa Supreme Court reviewed the case and affirmed the lower courts' decisions. The court held that Iowa Code section 535.17, the credit agreement statute of frauds, barred the Shallas' claims for negligence and fraudulent misrepresentation. The court concluded that the statute applies to all actions related to unwritten credit agreements, regardless of whether the claims are framed in contract or tort. The case was remanded to the district court for a determination of County Bank's attorney fees, including appellate attorney fees. View "County Bank v. Shalla" on Justia Law

Barry and Jacklynn Graham hired Bradshaw Renovations, LLC to renovate their home. They agreed on a contract with an initial estimate of $136,168.16, which was later revised to $139,168.16. The contract included provisions for revising estimates and required written approval for changes. Throughout the project, Bradshaw sent invoices that varied from the initial estimate, leading to the Grahams' concerns about billing practices. After paying $140,098.79, the Grahams disputed a final invoice of $18,779.15, leading to a legal dispute.The Iowa District Court for Polk County held a jury trial, which found in favor of the Grahams on their breach of contract and consumer fraud claims, awarding them $16,000 and $40,000 respectively. The court denied Bradshaw's claims for unjust enrichment and quantum meruit. Bradshaw's motions for directed verdict and judgment notwithstanding the verdict were also denied. The court awarded attorney fees to the Grahams for their consumer fraud claim.The Iowa Court of Appeals affirmed the jury verdict, the district court's denial of Bradshaw's posttrial motions, and the dismissal of Bradshaw's equitable claims. It also affirmed the attorney fee award but remanded for determination of appellate attorney fees.The Iowa Supreme Court reviewed the case and found that the Grahams did not present substantial evidence of consumer fraud as defined by Iowa Code section 714H.3(1). The court reversed the district court's ruling on the consumer fraud claim and remanded for entry of judgment consistent with this opinion. The court affirmed the district court's dismissal of Bradshaw's unjust enrichment and quantum meruit claims, as these were covered by the written contract. The court also upheld the $16,000 jury award for the breach of contract claim. View "Bradshaw Renovations, LLC v. Graham" on Justia Law

Brothers Robert, Gary, and Richard Hunter, experienced farmers, converted their general partnership into a limited liability company (LLC) named Hunter Three Farms, LLC. Each brother owned twenty voting units, while Hunter of Iowa, Inc. owned forty nonvoting units. The LLC did not have an operating agreement but filed a statement of authority with the Iowa Secretary of State, which allowed a majority of voting members to make ordinary business decisions.In 2018, Richard submitted a claim to the Syngenta Corn Seed Settlement Program on behalf of "Hunter Farms" using the LLC's tax identification number, without informing his brothers. He received a $62,467.91 settlement payment, which he deposited into an account inaccessible to the LLC or his brothers. When Robert and Gary discovered the payment, they demanded Richard distribute the funds, but he refused, claiming entitlement to the entire amount. Robert and Gary then authorized the LLC to sue Richard to recover the settlement proceeds.The Iowa District Court for Greene County granted Richard's motion for summary judgment, ruling that the LLC lacked standing to sue without unanimous consent from all voting members, including Richard. The Iowa Court of Appeals reversed this decision, with a divided panel concluding that the LLC could sue Richard if all disinterested members authorized the litigation. The dissenting judge argued that unanimous consent was required.The Iowa Supreme Court reviewed the case and clarified that the issue was one of authority, not standing. The court held that a majority of the voting members could authorize the LLC to file a suit to recover funds owed to the company, as such actions are within the ordinary course of the LLC's activities. Consequently, the court vacated the decision of the Court of Appeals, reversed the district court's judgment, and remanded the case for further proceedings. View "Hunter Three Farms, LLC v. Hunter" on Justia Law

Graphite Construction Group, Inc. (Graphite) was hired by Des Moines Area Community College (DMACC) in 2019 for a construction project. DMACC withheld 5% of each payment as retainage, amounting to about $510,000 by January 2022. Graphite requested the release of the retainage, but the project was not yet completed. A dispute arose between Graphite and a subcontractor, Metro Concrete, Inc. (Metro), over unpaid services. Metro filed a claim, and Graphite filed a bond for twice the amount of Metro’s claim, demanding the release of the retainage.The Iowa District Court for Polk County denied Graphite’s motion to compel the release of the retainage, stating that under Iowa Code chapter 573, retainage could not be released before the project’s completion and final acceptance. The court also denied Graphite’s request for attorney fees, as Graphite had not prevailed on its retainage claim.The Iowa Court of Appeals reversed the district court’s decision, ordering the release of the retainage to Graphite but denied Graphite’s request for attorney fees. DMACC sought further review from the Iowa Supreme Court.The Iowa Supreme Court vacated the Court of Appeals' decision and affirmed the district court’s judgment. The Supreme Court held that under Iowa Code chapter 573, retainage could not be released before the project’s completion and final acceptance, and the statutory exceptions did not apply in this case. The court also upheld the denial of attorney fees to Graphite, as they were not the prevailing party. View "Rochon Corporation of Iowa, Inc. v. Des Moines Area Community College" on Justia Law

The case involves a dispute over a postnuptial modification of a premarital agreement. The parties, David and Elizabeth Roberts, entered into a premarital agreement before their marriage in 1993. The agreement stipulated that each spouse waived their statutory elective share, but agreed that each would take one-third of the other’s net real property interests at the time of death. Twenty-four years later, the parties executed a new agreement, a "partial revocation" of the premarital agreement, which maintained the waiver of elective share but relinquished their one-third share in each other’s real property investments at the time of death. Elizabeth received approximately $15,000 cash and $50,000 in debt repayment or forgiveness from David, plus a monthly living allowance for as long as the couple remained married. After David's death, Elizabeth contested the validity of this partial revocation.The district court rejected Elizabeth's challenge and enforced the partial revocation. Elizabeth appealed the decision to the Supreme Court of Iowa.The Supreme Court of Iowa reversed the district court's decision. The court concluded that under Iowa law, specifically Iowa Code sections 596.7 and 597.2, a postmarital amendment to a premarital agreement relating to inchoate dower interests in property is not enforceable. The court found that the partial revocation was essentially an amendment, not a revocation, and that Iowa law does not permit married persons who previously entered into a premarital agreement to enter into a new agreement during their marriage relating to inchoate dower interests in each other’s property. The court remanded the case for further proceedings regarding counterclaims made by David's son, Eric, who asked that if the partial revocation agreement is invalidated, Elizabeth should be required to relinquish the benefits she received as a result thereof to avoid unjust enrichment. View "Roberts v. Roberts" on Justia Law

The case involves a dispute between the Terrace Hill Society Foundation (THSF) and the Terrace Hill Commission (the Commission) over the ownership and control of a collection of property and historical artifacts displayed at the Governor's official residence, Terrace Hill. THSF filed a petition seeking a declaration that it was the sole owner of the collection and an injunction granting it the right to access, itemize, insure, maintain, and preserve the collection. The Commission and its chairperson, Kristin Hurd, moved to dismiss the suit, arguing that it was barred by the doctrine of sovereign immunity and that Hurd could not provide the requested relief.The district court denied the motion to dismiss with respect to the Commission, finding that the factual allegations in the petition, when viewed in the light most favorable to THSF, were sufficient to overcome the State's immunity from suit. The court reasoned that the Commission had willingly accepted possession of THSF's property and retained it after the expiration of a 1996 agreement between the parties. However, the court granted the motion to dismiss with respect to Hurd and dismissed the claims against her without prejudice.On appeal, the Supreme Court of Iowa affirmed the district court's decision. The court held that the State can impliedly or constructively waive its immunity from suit when it voluntarily creates certain legal relationships that subject it to liability. The court found that THSF's amended petition alleged sufficient facts to plead a voluntary bailment, a legal relationship sounding in contract, which impliedly waived the State's sovereign immunity. The court also affirmed the dismissal of the claims against Hurd without prejudice, rejecting her argument that the claims should have been dismissed with prejudice. The case was remanded for further proceedings. View "Terrace Hill Society Foundation v. Terrace Hill Commission" on Justia Law

The case involves an Iowa attorney, Marc Harding, who hired an Indiana-based doctor, Rick Sasso, to provide expert witness services in a potential medical malpractice suit in Iowa. After things did not go as planned, Harding sued Sasso in Iowa to recover a portion of the $10,000 retainer he had paid, plus additional damages. Sasso moved to dismiss the suit, arguing that the Iowa court did not have personal jurisdiction over him. The district court denied the motion, and Sasso appealed. The court of appeals reversed the district court's decision and ordered the case to be dismissed, but the Supreme Court of Iowa granted Harding's application for further review.The Supreme Court of Iowa held that the Iowa court could exercise personal jurisdiction over Sasso. The court found that Sasso had sufficient minimum contacts with Iowa to support the exercise of personal jurisdiction over him with respect to the contract dispute. Sasso had entered into a contractual relationship with Harding, who is an Iowa lawyer, and agreed to evaluate a medical malpractice claim involving Iowa residents and to provide expert testimony at any trial in the medical malpractice case, which would have been venued in Iowa. The court also found that the exercise of jurisdiction would not be unreasonable or offend traditional notions of fair play and substantial justice. Therefore, the Supreme Court of Iowa vacated the decision of the court of appeals, affirmed the district court's order denying Sasso's motion to dismiss, and remanded the case for further proceedings. View "Harding v. Sasso" on Justia Law

The Supreme Court affirmed the judgment of the district court ruling that an Employer's refusal to collect dues from Union members' paychecks was a breach of certain collective bargaining rights and awarding money damages to Union, holding that there was no error.Union brought suit against Employer alleging that Employer breached its contracts by failing to deduct dues. The district court granted summary judgment in favor of Union as to Employer's liability for breach of contract for refusing to deduct dues. After a bench trial on the issue of damages the court awarded $1,046,835 to Union. The Supreme Court affirmed, holding (1) Employer breached the contracts' written terms by failing to collect dues; and (2) the money damages remedy was appropriate and without legal error. View "UE Local 893/IUP v. State" on Justia Law

In this action concerning a lease renewal for property on which a cell tower was built the Supreme Court affirmed the judgment of the district court and the court of appeals in favor of a cell phone service company and dismissing this action brought by property owners, holding that there was no error.In 1988, the cell phone company entered into a thirty-year lease of the subject property that included a thirty-year renewal option. In 2018, when the lease came up for renewal, the rent was substantially below market, and the company gave written notice of renewal to the property owners. Because the company did not immediately pay the renewal rent the property owners brought suit arguing that the option had not been validly exercised. The district court granted judgment for the cell phone company, and the court of appeals affirmed. The Supreme Court affirmed, holding that the property owners were not entitled to relief on their allegations of error. View "Pitz v. U.S. Cellular Operating Co. of Dubuque" on Justia Law