Hunter
11/14/22
The legal battle between the University of Iowa and contractor Modern Piping continues.
The Gazette is reporting that instead of paying the $12.8 million a jury awarded to the contractor last month, the UI is asking a judge to pause a requirement it pay the money so it can dispute the verdict or appeal in a dispute over construction issues at the Stead Family Children’s Hospital.
The request, filed last week, indicates that the UI and the Board of Regents want the verdict vacated or a new trial. State rules allow defendants who lose at trial can argue for a new trial if they were harmed by irregular proceedings, jury misconduct, or excessive damages influenced by passion or prejudice, among other things. In filing their motion, the state says Modern Piping won’t be harmed by a delay in payment as post-judgement interest will accrue while awaiting a ruling.
Meanwhile, the day after the jury award, Modern Piping asked the court to require the state, UI and regents to pay an additional $16 million related to issues about posting a bond and questions that arose at the start of the disagreement in 2016. Lawyers for the state answered the filing by saying the issues involving the bond were resolved years ago.
The contractor has already been awarded $21.5 million when a judge ruled in favor of Modern Piping after an arbitrator ruled that they deserved additional payment for work done on the hospital and Hancher Auditorium. Last month’s jury verdict determined that the UI wrongfully blocked the American Arbitration Association from originally mediating the dispute.
The Gazette investigated the troubles that occurred during the Stead Family Children’s Hospital construction in 2018, finding an escalation of expenses following delays and mismanagement. They published the results in a story titled “Tower of Troubles” that to this day still tops Google searches under that title. They have continued to report on the project, which was originally budgeted at $270.8 million and could top $420 million if current court proceedings do not favor the University.