Flynn Builders, L.C. v. Matthew P. Lande and Chris Lande
2012 Iowa Sup. LEXIS 56
| Iowa | 2012Background
- Contract between Flynn Builders, L.C. and the Landes for a new home at $259,576 including a $61,223.77 materials package; Landes discovered a $20,000 markup not disclosed.
- Landes and their lender refused to pay the markup; Flynn halted construction and filed a mechanic’s lien for $28,307.50.
- Flynn filed a petition to foreclose the lien; trial occurred in May 2010; Flynn testified substantial completion remained possible with subcontractors finishing remaining work.
- District court found substantial performance and entered judgment for Flynn in the amount of $16,574.75; Landes appealed.
- Court of Appeals affirmed; Iowa Supreme Court granted review; decision reversing part, vacating part, and remanding for further proceedings.
- Supreme Court held Flynn did not substantially perform and remanded for further proceedings; affirmed other issues of the Court of Appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Flynn substantially performed the contract to foreclose the lien | Flynn argued substantial performance was satisfied by remaining punch-list work. | Landes argued missing/unfinished work prevented substantial performance. | Flynn did not substantially perform; remanded for further proceedings. |
Key Cases Cited
- Huffman v. Hill, 245 Iowa 935 (Iowa 1954) (substantial performance requires omissions not impairing the structure as a whole)
- Farrington v. Freeman, 251 Iowa 18 (Iowa 1939) (substantial performance allows deductions for slight, unintentional deviations)
- Keys v. Garben, 149 Iowa 394 (Iowa 1910) (substantial performance doctrine rooted in contract law)
- Littell v. Webster Cnty., 152 Iowa 206 (Iowa 1911) (definition of substantial performance in building contracts)
- Plante v. Jacobs, 103 N.W.2d 296 (Wis. 1960) (no fixed percentage determines substantial performance; omissions must be remediable)