Dobbs v. Knudson, Inc.

McCORMICK, Justice.

The question here is whether health, welfare and pension trusts may make public improvement lien claims for unpaid sums which subcontractors on the public improvement were obligated to pay for their employees. The trial court held they may not. We reverse and remand.

Knudson, Inc., contracted with the Iowa Department of Social Services (“the Department”) to construct a building at the Glenwood State Hospital School. Knudson furnished a performance bond as required by § 573.2, The Code, with Universal Surety Company (“Universal”) as surety. William H. Dobbs and Bourke Lumber…