City of Ankeny Suing Bond Company for Breach of Contract

The city of Ankeny has filed a lawsuit against a bonding company involved in the construction of the new Ankeny police station, citing breach of contract and bad faith denial of a claim on the bond.

The City filed a claim with Merchants Bonding Company on Aug. 9 asking for full payment of $1,023,979 immediately, according to this article by the Des Moines Register. The claim was denied, which prompted the lawsuit on Aug. 21.

The city is seeking compensatory damages with interest along with attorney fees and costs.

The city is currently in arbitration with the building contractor, Larson & Larson Construction, whom the city alleges failed to perform all of the duties from the April 2007 contract, the article said.

Since the contractor has breached the contract the responsibility now falls on the bonding company, Ankeny City Attorney Amy Beattie told the Register.

Check here to see the full article by the Register.