Lyle E. Schneider, Paul S. Kurtz And Shirley J. Kurtz, Gene J. Peters, Sterling Tops, Inc., Robert W. Bonorden And Deann M. Bonorden, Gerald W. Petersen, Richard R. Kane And Debra K. Kane, Mark A. Doepke And Michelle L. Doepke, Gloria M. Knapp Freilinger, Rudy Busch D/b/a Rudy's Sales And Service, Paul R. Beem And Stacie L. Beem, David J. Fink And Deb Fink, Davik's Auto Body/denver Oil Company, Randall-marta Bender D/b/a Bender Enterprises, Inc., Tommie Brettmann D/b/a Denver Mill, Byron D. Davis And Jane P.Davis, Davis Farm And Auto, Inc., William Buss D/b/a Denver Construction, Inc., And Mike Wooldrik, As Of The Estate Of Robert Wooldrik, Vs. State Of Iowa

789 N.W.2d 138, 2010 Iowa Sup. LEXIS 90
Supreme Court of Iowa·Decided September 3, 2010·No. 07–0887·Published·Cited by 28 cases

Opinion

HECHT, Justice.

Landowners sued the State of Iowa alleging its negligent design and construction of a highway project caused a flood and resulting damages. The State moved for summary judgment asserting the district court lacked subject matter jurisdiction over the claims of some of the plaintiffs who failed to exhaust their administrative remedies and advancing statutory immunities against all of the plaintiffs’ claims. The district court granted the motion based on the State’s statutory immunity for discretionary functions. The landowners appealed, and the court of appeals affirmed the district court’s ruling. On further review, we conclude the defense of immunity for discretionary functions is not available to the State under the circumstances of this case. We vacate the decision of the court of appeals, affirm in part and reverse in part the district court’s judgment, and remand for further proceedings.

I. Factual Background and Proceedings.

When viewed in the light most favorable to the plaintiffs, the summary judgment record could establish the following facts. In the late 1980s, the Iowa Department of Transportation (DOT) developed a plan to relocate a portion of Highway 63 to bypass the city of Denver, Iowa. The plan called for the construction of a four-lane divided highway along the west side of the city and a bridge spanning Quarter Section Run Creek, a stream flowing through Denver. The original construction of the bypass project commenced in 1993 and concluded in 1994.

In a flood insurance study commissioned by the city in 1990, the creek was designated as a “regulatory floodway.” A floodway “ ‘is the channel of a stream plus any adjacent flood plain areas that must be kept free of encroachment so that [a] 100-year flood can be carried without substantial increases in flood heights.’ ” 1 K & W Elec., Inc. v. State, 712 N.W.2d 107, 110 (Iowa 2006) (quoting 1984 Federal Emergency Management Agency flood insurance study). The bridge and related structures were designed to accommodate a 50-year flood event. 2 The new bridge, *142 consisting of twin structures 168 feet in length, spanned the creek, but not the entire floodway. The embankment constructed for the roadway encroached upon the floodway and impeded the drainage of water from it.

In May 1999, Denver experienced an extraordinary rain event and resulting flood which damaged thirty-five homes and thirty-four businesses. The intensity of the rain produced a volume of rainwater in the floodway consistent with the magnitude of a 250-year flood. A resource assessment and flood study undertaken by the United States Department of Agriculture Natural Resources Conservation Service concluded the embankment constructed for the bypass “cut[ ] off a large portion of the floodway,” causing water moving through it to “back up” during the 1999 event. Computer models prepared for the study illustrated that the bypass structures increased the depth of the 1999 flood waters by as much as three feet in certain areas of the city and caused flooding in a part of the city that would not have flooded but for the construction of the bypass. The models also produced evidence tending to prove the bridge and related structures would have caused flood waters in a 100-year flood event to rise higher in some parts of Denver upstream from the bridge than would have been the case had the bridge and related structures not been placed in the floodway.

In the aftermath of the flood, the city formed a task force to explore potential remedial measures to diminish the risk of future flooding. Following a lengthy period of study and investigation of a range of options, the State chose to redesign and extend the bridge. The reconstruction of the bridge and the reconfiguration of the floodway in 2004 and 2005 modified the elevation of the floodway along the creek and substantially enhanced the capacity of the floodway to convey water away from the city. The summary judgment record includes testimony and an affidavit of the State’s expert tending to prove the reconstruction brought the bridge and related structures 3 into substantial compliance with the Q100 standard. 4

Owners of several properties damaged in the 1999 flood filed suit alleging the State negligently designed and constructed the bridge. The landowners alleged the State breached a common-law duty by designing and constructing the bridge in a manner that obstructed the floodway and increased the depth of floodwater during the 1999 event. 5 The landowners further *143 alleged the State breached a duty derived from Iowa Code section 314.7 proscribing disruption of the natural drainage of surface water when improving or maintaining a highway. The State’s answer asserted immunity from liability under Iowa Code section 669.14 because the design and construction of the project were discretionary functions and because the project conformed with a generally recognized engineering or safety standard, criteria, or design theory prevailing at the time of its design and construction or reconstruction.

The State filed a motion for summary judgment asserting the district court lacked subject matter jurisdiction over the cases of some of the plaintiffs who, after filing their claims with the state appeal board as required under Iowa Code chapter 669, failed to respond to the attorney general’s requests for additional information and documentation of the claims. The motion also sought summary judgment in the State’s favor as to all of the plaintiffs’ claims based on the immunity defenses asserted in the answer. The district court concluded it had subject matter jurisdiction because the plaintiffs’ administrative filings were minimally sufficient to achieve exhaustion, but granted the motion, reasoning the State is immune under Iowa Code section 669.14(1) from liability to the plaintiffs because the design and construction of the bypass were discretionary functions based on “considerable planning” and a “balancing of governmental priorities and competing governmental demands.” The district court further concluded the State was entitled to summary judgment on the plaintiffs’ claims for damages for permanent devaluation of their properties under section 669.14(8) because the bridge was constructed or reconstructed in accordance with a generally recognized engineering or design theory. The summary judgment ruling also rejected the plaintiffs’ legal theory that the construction of the bridge diverted the natural flow of water and caused the 1999 flooding in violation of Iowa Code section 314.7.

The landowners appealed, contending the district court erred in granting summary judgment in favor of the State based on the discretionary immunity and state-of-the-art defenses. The landowners further challenged on appeal the district court’s determination that they failed to engender a fact question in the summary judgment record as to whether the State violated Iowa Code section 314.7 in the course of the design and construction of the bridge. We transferred the appeal to the court of appeals.

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Lyle E. Schneider, Paul S. Kurtz And Shirley J. Kurtz, Gene J. Peters, Sterling Tops, Inc., Robert W. Bonorden And Deann M. Bonorden, Gerald W. Petersen, Richard R. Kane And Debra K. Kane, Mark A. Doepke And Michelle L. Doepke, Gloria M. Knapp Freilinger, Rudy Busch D/b/a Rudy's Sales And Service, Paul R. Beem And Stacie L. Beem, David J. Fink And Deb Fink, Davik's Auto Body/denver Oil Company, Randall-marta Bender D/b/a Bender Enterprises, Inc., Tommie Brettmann D/b/a Denver Mill, Byron D. Davis And Jane P.Davis, Davis Farm And Auto, Inc., William Buss D/b/a Denver Construction, Inc., And Mike Wooldrik, As Of The Estate Of Robert Wooldrik, Vs. State Of Iowa, 789 N.W.2d 138, 2010 Iowa Sup. LEXIS 90 (iowa 2010).

789 N.W.2d 138 (Lyle E. Schneider, Paul S. Kurtz And Shirley J. Kurtz, Gene J. Peters, Sterling Tops, Inc., Robert W. Bonorden And Deann M. Bonorden, Gerald W. Petersen, Richard R. Kane And Debra K. Kane, Mark A. Doepke And Michelle L. Doepke, Gloria M. Knapp Freilinger, Rudy Busch D/b/a Rudy's Sales And Service, Paul R. Beem And Stacie L. Beem, David J. Fink And Deb Fink, Davik's Auto Body/denver Oil Company, Randall-marta Bender D/b/a Bender Enterprises, Inc., Tommie Brettmann D/b/a Denver Mill, Byron D. Davis And Jane P.Davis, Davis Farm And Auto, Inc., William Buss D/b/a Denver Construction, Inc., And Mike Wooldrik, As Of The Estate Of Robert Wooldrik, Vs. State Of Iowa) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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