Waterloo Schools seeking at least $19 million in lawsuit over Lowell Elementary insurance settlement

Mar. 15—WATERLOO — Waterloo Community Schools is suing its insurance company for "no less than $19 million" two years after a roof collapse following heavy snow closed Lowell Elementary School and eventually led to its demolition.

The lawsuit seeks to recover damages for an alleged breach of contract after the school district and Employers Mutual Casualty Company of Des Moines couldn't agree on an insurance settlement.

Attorney Stephen R. Eckley of Des Moines filed the suit Feb. 2 in Polk County District Court. It calls for a declaratory judgement that the insurance policy "covers all damages to Lowell resulting from the February 2019 weather event, including repairs outside the limited area of collapse," with a jury trial to determine the award amount.

The insurance company has paid the district just under $1.71 million — "a fraction of the amount owed under the policy," according to the suit.

In a March 4 response to the filing, attorney Sean M. O'Brien of Des Moines said the company "denies it owes the District any further compensation under the policy." He countered Waterloo Schools' claims, citing five policy exclusions that "may apply to preclude coverage for all or a portion of the damages."

The district is being represented by Eckley Law and Weisbrod Matteis & Copley in Washington, D.C.

"Negotiations between Waterloo Schools and EMCC have stalled," the attorneys said in a statement released by the district. "It became clear earlier this year that the District would need to initiate a lawsuit to make further progress."

Employees Mutual Casualty Company didn't immediately respond to a request for comment on the lawsuit through its attorney. O'Brien, of the firm Bradshaw, Fowler, Proctor & Fairgrave, declined to comment.

A year after the partial roof collapse and following months of negotiations, Waterloo Schools began preparing to demolish the existing Lowell building and construct a new one. In April 2020, the Waterloo Board of Education approved a $21.94 million contract for the new school with Larson Construction of Independence. Students and teachers are expected to begin using the building in January, when work will be largely done.

Lowell was built in 1931 with an addition constructed during a multi-year construction process between 2004 and 2007. Most of the school was re-roofed during this time, as well.

According to the lawsuit, "the collapse occurred because the hidden, internal layer of Lowell's exterior walls was too weak to support the snow and ice that had accumulated on the roof during the storm. The mortar inside that layer had deteriorated over time. ... There was no outward indication that there was pervasive mortar deterioration, and there was no reason for the District to anticipate a roof collapse."

In its response, the insurance company acknowledged that its representatives had inspected the property prior to the collapse, but denied the allegation that the collapse could not have been anticipated. The defendant also denied an assertion by the district that "the internal mortar throughout the areas of the school constructed in 1931 was likely to have deteriorated to the same extent" as the collapsed area. However, the company agreed that the deterioration made the building "unsafe for ordinary occupancy without remediation."

The lawsuit noted that the insurance policy covers losses resulting from weather events and collapse. It pointed to passages saying that EMCC will pay for damaged and undamaged portions of the school in repair or rebuilding. But the company's response denied that "all relevant portions of the policy" were being considered.

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