CMT Highway, LLC v. Logan Contractors Supply, Inc.
CMT Highway, LLC, an Iowa Limited Company, Plaintiff/Counterclaim Defendant, Appellant/Cross-Appellee
Logan Contractors Supply, Inc., an Iowa Corporation, Defendant/Counterclaim Plaintiff, Appellee/Cross-Appellant
Attorneys for Appellants/Cross-Appellees
Molly M. Parker (argued)
Samuel E. Jones
Steven J. Pace
Kate Thorne
Joseph C. Creen
Attorneys for Appellee/Cross-Appellant
Michael W. Thrall (argued)
Matthew A. McGuire
Roy Leaf
Court of Appeals
Court of Appeals Opinion
Opinion Number:
Date Published:
Summary
Appeal from the Iowa District Court for Cedar County, Jeffrey D. Bert, Judge. AFFIRMED ON APPEAL; VACATED IN PART AND REMANDED WITH INSTRUCTIONS ON CROSS-APPEAL. Heard at oral argument by Tabor, C.J., and Ahlers and Langholz, JJ. Opinion by Ahlers, J. (19 pages)
CMT Highway, LLC (CMT) appeals from a ruling that found it breached its contracts with Logan Contractors Supply, Inc. (Logan Contractors). CMT argues that it never formed binding contracts with Logan Contractors and, even if it did, it did not breach any contracts when it sought to change the purchase price of materials it was to produce for Logan Contractors. CMT claims that even if it breached the contracts the court erred in awarding Logan Contractors damages for cover materials and including damages associated with separate projects not subject to the proposed price increases. Logan Contractors cross-appeals challenging the interest awarded to CMT for previously delivered materials for which Logan Contractors had withheld payment, claiming CMT was improperly awarded double prejudgment interest. Logan Contractors also argues that the court did not correctly set the start date and rate of post-judgment interest on its award against CMT. OPINION HOLDS: The parties did form binding contracts when Logan Contractors accepted CMT’s bids, and CMT breached those contracts by refusing to produce materials for Logan Contractors at the agreed pricing. The award of damages for cover materials is supported by substantial evidence. Because CMT refused to continue to do any business with Logan Contractors if Logan Contractors did not agree to pay higher prices on certain projects, it repudiated all contracts it had with Logan Contractors and Logan Contractors was entitled to damages for cover materials on all projects, including those not subject to the price increases. As to the cross-appeal, Logan Contractors failed to preserve error on its claim relating to post-judgment interest. However, we remand to correct the prejudgment interest awarded to CMT for payments Logan Contractors withheld for previously delivered materials.
