Long-running legal battle over Terrace Hill artifacts rolls on

The Iowa Supreme Court has ruled that a lawsuit over the ownership of donated artifacts inside the official residence of the governor should be allowed to proceed.

The ruling centers on a dispute between the private, nonprofit Terrace Hill Society Foundation and the state’s Terrace Hill Commission, both of which are dedicated to restoring, preserving and furnishing Terrace Hill, the official residence of Iowa’s governor. The building, located at 2300 Grand Ave. in Des Moines, is a National Historic Landmark built in 1869.

For years, the foundation worked closely with the commission, a state entity that manages the governor’s residence, by placing items from its collection of artifacts on display at Terrace Hill.

In recent years a dispute arose over ownership and control of the collection, which, the foundation claimed, resulted “in the commission, in effect, seizing control of the collection.” In 2022, the Terrace Hill Society Foundation sued the commission, alleging that for nearly 50 years, the foundation and its predecessors had received hundreds of items of donated property, including historical artifacts and monetary donations, for the restoration and improvement of Terrace Hill.

The foundation argued that it had placed many of the donated items into the “custody and control of the commission,” while relying on an agreement the two had to work “harmoniously” and “cooperatively” in a joint effort to improve the mansion. According to the foundation, the agreement provided that donations from the foundation to the commission were made with the understanding that the foundation would retain ownership of the items.

The commission, represented by the attorney general’s office, attempted have the district court dismiss the lawsuit, arguing it was barred by the doctrine of sovereign immunity. The district court denied that motion, but the state appealed, sending the matter to the Iowa Supreme Court.

The court on Friday ruled in favor of the foundation, affirming the district court judge’s decision that the foundation “has property rights under state law and the Iowa Constitution, and it is entitled to have this court rule on the merits of its ownership claims.”

The ruling means litigation over the issue of ownership can resume at the district court level.

The Terrace Hill Commission is a nine-person board, created by statute and appointed by the governor, that provides for the preservation, maintenance, renovation, landscaping and administration of Terrace Hill.