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IN THE COURT OF APPEALS OF IOWA No. 9-626 / 08-1321 Filed November 12, 2009

ARTHUR W. RENANDER and ZARA RENANDER, Plaintiffs-Appellants, vs. GARY AAMODT, Defendant-Appellee. ________________________________________________________________

Appeal from the Iowa District Court for Johnson County, Fae HooverGrinde, Judge.

The plaintiffs appeal a district court's dismissal of their fraudulent misrepresentation claim against a defendant, contending that the court incorrectly determined two alleged representations were not actionable. AFFIRMED.

Davis Foster of Foster Law Office, Iowa City, for appellant. Thomas Hobart and Peter Gardner of Meardon, Sueppel & Downer, P.L.C., Coralville, for appellee.

Heard by Vaitheswaran, P.J., and Mansfield, J., and Miller, S.J.*
*Senior judge assigned by order pursuant to Iowa Code section 602.9206 (2009).

2 VAITHESWARAN, P.J. Arthur and Zara Renander appeal the district court's dismissal of their claim of fraudulent misrepresentation against Gary Aamodt. I. Background Facts and Proceedings Arthur Renander acquired eighteen acres of land near Coralville, Iowa, that abutted 100 acres of land owned by a partnership known as High Country. To facilitate the development of a golf course by High Country, Renander agreed to exchange his eighteen acres for nine acres of High County land that had better access and zoning. When development of the golf course did not go as After extensive litigation,

Renander expected, Renander sued High Country.

Renander and High Country reached a settlement under which High Country agreed to sell its 100 acres to Renander, subject to certain outstanding claims. As Renander did not have sufficient funds to purchase the 100 acres, he approached his friend Gary Aamodt about joining the enterprise. Renander was aware that Aamodt recently sold certain real estate for a net gain of close to one million dollars. He was also aware that Aamodt could defer taxation on those gains under Internal Revenue Code section 1031 if he designated a similar property for purchase within forty-five days of this sale and followed through with the purchase within 180 days of the sale.1 Aamodt designated the Coralville property along with two other properties as potential 1031 purchases. Meanwhile, Renander agreed to pay High Country

1

No gain or loss is recognized for tax purposes if property is exchanged for like property; such like property must be identified within forty-five days of the sale of the original property and must be received by the taxpayer within 180 days of the transfer of property relinquished in the exchange. 26 U.S.C.

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