Jacobson v. Leap

This is the second chapter in a controversy over the city of McGregors condemnation of riverfront property owned by Robert and Virginia Janett. In an earlier case, the court of appeals rejected the Janetts civil rights claims against the city engineer. See City of McGregor v. Janett, 480 N.W.2d 576, 580 (Iowa App. 1991). In the case now before us, the question is whether the city can be held liable on a theory of fraudulent misrepresentation for statements made by city council members concerning the condemnation. Janetts convinced the district court that oral assurances made by the council led them to forego an appeal of the condemnation award in the belief the proceedings would be abandoned and their property returned. Finding the council members statements actionable, the court entered judgment against the city for damages equal to what Janetts claimed they could have recovered had an appeal been pursued.