Owen Construction Co. v. Iowa State Department of Transportation

McCORMICK, Justice.

The determinative question here is whether plaintiff’s recovery for breach of contract was barred by a provision in the contract purporting to limit defendant’s liability. We hold that the limitation was applicable and therefore reverse the trial court judgment for plaintiff.

Plaintiff Owen Construction Company, Inc. entered a written contract with defendant Iowa State Department of Transportation (then the Iowa Highway Commission) to do grading work in connection with a farm-to-market road project in Audubon County in 1972. The contract incorporated by reference the general…