Rochon Corporation of Iowa, Inc. n/k/a Graphite Construction Group, Inc.
v.
Des Moines Area Community College
A general contractor on a public construction project appealed the district court’s ruling that the contractor was not yet entitled to some or all of the retainage funds being held by a project owner. The contractor contended its bonding off a subcontractor’s Iowa Code chapter 573 claim, pursuant to Iowa Code section 573.16(2), immediately entitled the contractor to the retainage and the district court erred in ruling that the contractor must wait until the expiration of 30 days after completion and final acceptance of the project. The contractor also contended the district court erred in declining to award it attorney fees. The court of appeals reversed and remanded for entry of an order granting immediate payment from the retainage fund, and denied attorney fees because the contractor was not a “claimant” under Iowa Code section 573.21. The project owner seeks further review.
Appellant
Rochon Corporation of Iowa, Inc. n/k/a Graphite Construction Group, Inc.
Appellee
Des Moines Area Community College
Attorneys for the Appellant
Stephen D. Marso
Bryn E. Hazelwonder
Attorneys for the Appellee
Jodie McDougal
Philip S. Bubb
Michael D. Currie
Jason Craig
Kristine Stone
Supreme Court
Oral Argument Schedule
15-15-5
Oct 10, 2024 1:30 PM
Briefs
Supreme Court Opinion
Opinion Number:
Date Published:
Court of Appeals
Court of Appeals Opinion
Opinion Number:
Date Published:
Summary
Appeal from the Iowa District Court for Polk County, Robert B. Hanson, Judge. REVERSED AND REMANDED WITH DIRECTIONS. Heard by Greer, P.J., and Ahlers and Buller, JJ. Opinion by Greer, P.J. (28 pages)
Graphite Construction Group, Inc. (Graphite Construction), the principal contractor on a public construction project, appeals the district court’s ruling that it was not yet due part of the retainage being held by the owner of the project, Des Moines Area Community College (DMACC). OPINION HOLDS: Because Graphite Construction’s request for release of the full value of the surety bond from the retainage fund was timely and appropriate under Iowa Code section 573.16(2) (2022), and because DMACC cannot rely on section 573.28 to withhold some retainage based on the value of uncompleted labor and materials, we reverse the decision of the district court and remand for an order granting payment from the retention fund in the amount of $82,627.78, plus interest as provided by section 573.16(2). We deny the request to award attorney fees to Graphite Construction.