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Contracts Keyed to Knapp
Vogan v. Hayes Appraisal Associates, Inc
Facts
Plaintiffs obtained a mortgage from MidAmerica for the construction of their new home. After some time had passed, it became apparent that the appraisal of the property did not encompass all of the contracting costs and Plaintiffs were forced to sign another mortgage and expend more of their personal funds. Later, the contractor who had been hired to construct the house defaulted on the agreement. Plaintiffs brought suit to recover the funds they had spent in reliance of the appraisals and progress reports made by Defendant. Plaintiffs recovered judgment in the trial court, which was reversed by the intermediate appellate court. Plaintiffs then appealed to the Iowa Supreme Court.
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