Justin Boliver and Nicole L. Boliver v. Larry Kester
15-1973
| Iowa Ct. App. | Aug 17, 2016Background
- Kester developed Cross Country Estates; 2004 service lateral form identified Lot 6 sewer connection location.
- In 2006, the preliminary plat was modified, relocating a nearby manhole; no new service lateral form was submitted for the changed location.
- Lot 6 was sold to a third party in 2008, then to the Bolivers in 2012; they hired a general contractor for construction.
- Plumbers received the 2004 form and verified with the city; they dug for the sewer connection at the stated location and found nothing.
- Kester showed the plumbers the 2004 form but did not provide updated designs; the search continued for approximately 11 working days and cost nearly $15,000.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Kester’s information constitutes negligent misrepresentation | Bolivers contend Kester supplied erroneous location information to their contractors. | Kester did not supply information in his business context, and the plumbers did not rely on any information from him. | No negligent misrepresentation; lack of information, lack of business context, and no reliance. |
Key Cases Cited
- Van Sickle Constr. Co. v. Wachovia Commercial Mortg., Inc., 783 N.W.2d 684 (Iowa 2010) (negligent misrepresentation framework for pecuniary loss)
- Bagelmann v. First Nat'l Bank, 823 N.W.2d 18 (Iowa 2012) (Restatement (Second) of Torts § 552(1) interpretation)
- Pitts v. Farm Bureau Life Ins. Co., 818 N.W.2d 91 (Iowa 2012) (restrictive recovery for economic-interference misrepresentation)
- McLeodUSA Telecomm. Servs., Inc. v. Qwest Corp., 469 F. Supp. 2d 677 (N.D. Iowa 2007) (evolution of elements for negligent misrepresentation)
- Brokaw v. Winfield-Mt. Union Cmty. Sch. Dist., 788 N.W.2d 386 (Iowa 2010) (substantial-evidence standard and review for factual findings)
