5th and Walnut Parking, LLC; 5th and Walnut Tower, LLC; 5th and Court, LLC; Justin Mandelbaum; and Sean Mandelbaum v. City of Des Moines

The City of Des Moines appeals, and real estate developers cross appeal, from the final judgment entered in litigation over a real estate development project in downtown Des Moines. The City contends the district court erred: (1) in ruling the City Manager’s actions were not discretionary and thus not protected by the discretionary function immunity of Iowa Code section 670; (2) by finding the City breached the development agreement rather than the developers; (3) in determining the City was liable for tortious interference with the contract between the developers and their lender; and (4) in its findings regarding the award of damages. In their cross-appeal, the developers contend the district court erred in numerous respects in its damage award.

Holding: The City appeals and the developers cross-appeal from a judgment for money damages on a failed real estate project. Appeal Affirmed in Part and Reversed in Part; Cross-Appeal Affirmed.