City of Ames v. Schill Builders, Inc.

UHLENHOPP, Justice.

The question in this appeal is whether plaintiff City of Ames, Iowa, is a real party in interest in a suit on a developer’s contract and bond. The case at this stage does not involve the ultimate question of whether the City can recover; it involves only the City’s standing to sue.

In exchange for the City’s approval of a plat of a tract of land, Schill & Hanson Builders, Inc. agreed in 1970 to construct sewers and other improvements within 12 months and posted a bond issued by State Surety Company as security. The agreement permitted the City to complete the improvements if…