The Iowa Court of Appeals has determined that Kansas City Life Insurance Co. interfered with R&R Realty Group’s ability to make routine management decisions in the Highland Pointe Office Park development in Urbandale. Kansas City Life is an equity partner in the development and under a 7-year-old agreement with West Des Moines-based R&R Realty has the right to participate in major decisions, such as the acquisition of real estate. However, day-to-day operations have been left to R&R Realty. Kansas City Life claimed that its partner violated the agreement when it transferred land to an owners’ association for a storm water detention pond. Polk County District Judge Robert Blink said the transfer was within the normal course of a commercial real estate deal and determined that R&R Realty had not violated the agreement. However, Blink also listed eight topics that would constitute major decisions under the agreement. Appellate judges said Blink should not have outlined those major decisions. The judges also reversed relief that had been granted to R&R Realty. Judge Mary Tabor wrote the opinion and Judge Richard Doyle concurred. Chief Judge David Danilson agreed that although Blink did not have authority to delve into the types of major decisions that the development partners could make, he argued that R&R Realty’s actions Kansas City Life’s entity Urbandale Best to “lose its contractual right to jointly share in the major decisions of the real estate development.” Kansas City Life and R&R Realty have been partners in signature Greater Des Moines developments, including Paragon Office Park in Urbandale. However, court documents noted that the partnership had devolved into an adversarial relationship as the result of disagreements over some development projects. Read more