Opinion ID: 2159609
Heading Depth: 1
Heading Rank: 1

Heading: Negligent or Fraudulent Misrepresentation.

Text: In seeking to sustain the district court's judgment, the State contends that the denial of the permit was the failure to exercise or perform a discretionary function, an activity for which the State is expressly relieved from liability under Iowa Code section 25A.14(1) (1985). We do not believe that the issue may be properly decided on this basis. In reviewing plaintiffs' claims, it appears that they are not contending that the State's denial of a permit was improper on the merits. They are instead alleging that the State's assurances that the permit would be granted were recklessly or negligently made in a manner calculated to produce detrimental reliance on their part. As a result, the case cannot be determined simply on the basis of a discretionary function. In describing the type of claim which may be pursued against the State of Iowa or its instrumentalities or agencies, the legislature has employed both language of inclusion and exclusion. Claims cognizable under Iowa Code chapter 25A (1985) include: a. Any claim against the state of Iowa for money only, on account of damage to or loss of property or on account of personal injury or death, caused by the negligent or wrongful act or omission of any employee of the state while acting within the scope of the employee's office or employment, under circumstances where the state, if a private person, would be liable to the claimant for such damage, loss, injury, or death. b. Any claim against an employee of the state for money only, on account of damage to or loss of property or on account of personal injury or death, caused by the negligent or wrongful act or omission of any employee of the state while acting within the scope of the employee's office or employment. Iowa Code § 25A.2(5)(a), (b) (1985). The provisions of the chapter, however, do not apply with respect to certain claims. These include: Any claim arising out of assault, battery, false imprisonment, false arrest, malicious prosecution, abuse of process, libel, slander, misrepresentation, deceit, or interference with contract rights. Iowa Code § 25A.14(4) (emphasis added). Assuming that the false assurances for project approval which were given plaintiff by the State or its agents were of a nature otherwise actionable as misrepresentation, see Beeck v. Kapalis, 302 N.W.2d 90, 95 (Iowa 1981), we conclude that the exclusionary language of section 25A.14(4) supports the State's entitlement to sovereign immunity. As we stated in Greene v. Friend of Court, Polk County, 406 N.W. 2d 433, 436 (Iowa 1987), [t]he latter section identifies excluded claims in terms of the type of wrong inflicted. Here, the gravamen of plaintiffs' claim is misrepresentation, deceit, and interference with contract rights. The district court was correct in concluding that such claims will not lie against the sovereign.