A legal battle centering on the ISU Foundation’s right to keep certain records private has taken another step toward the Iowa Supreme Court.

On Jan. 12, Mark Gannon, former land manager for the ISU College of Agriculture, and Arlen Nichols, a retired Des Moines businessman, filed a brief asking the Iowa Supreme Court to hear the case, which had been dismissed by a district judge in September.

In the lawsuit, Gannon, owner of Gannon Real Estate Services, Inc., and Nichols claim the ISU Foundation had refused to provide contribution records, meeting minutes and a detailed account of spending and income and the handling of trusts.

Adding to the controversy were claims the Foundation had mishandled the Kiley and Marie Powers estate, selling it against the wishes of Marie Powers in 1996.

The argument centers on whether the three state universities’ foundations are organizations overseen by the Board of Regents, making them public entities with public records, or private foundations.

Because the Board of Regents is named as a co-defendant, a ruling could affect the fund raising capabilities of all three regent universities.

District Judge William Ostlund dismissed the case, saying the ISU Foundation’s records are not public record until the funds are dispersed to Iowa State, according to court documents.

Nichols and Gannon view the court’s findings as incorrect, believing the ISU Foundation is a government body, performing valid government functions. According to the lawsuit, the Foundation’s structure and designation by the Internal Revenue Code as a private foundation “do not insulate it from being what it truly is — a functioning arm of what is clearly a government body.”

Nichols and Gannon argue that, until recently, the Foundation was staffed by public employees, received public funds, used public facilities and reported to government bodies on its activities.

Shortly before and after the suit was filed, the Foundation substantially changed its structure. It is no longer staffed by university employees and is no longer located on the ISU campus.