CMT Highway LLC v Logan Contractors Supply Inc - Breach of Contract Cover Damages
Summary
The Iowa Supreme Court granted further review in CMT Highway LLC v. Logan Contractors Supply Inc., a breach of contract case involving cover damages under Iowa Code section 554.2712. The Court of Appeals had affirmed the district court ruling that a breaching seller's offer of the same goods at a higher price cannot qualify as a substitute good for cover. The appellate court held that binding contracts formed when Logan accepted CMT's bids, CMT breached by refusing to produce materials at agreed pricing, and Logan was entitled to cover damages on all projects because CMT's refusal to do business unless prices increased constituted repudiation of all contracts. Cross-appeal resulted in remand to correct prejudgment interest awarded to CMT.
“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.”
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GovPing monitors Iowa Supreme Court for new courts & legal regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 47 changes logged to date.
What changed
The Iowa Supreme Court granted further review of a court of appeals decision affirming breach of contract findings against CMT Highway LLC. The appellate court held that CMT's attempt to renegotiate material prices on certain projects constituted repudiation of all contracts with Logan Contractors Supply, entitling Logan to cover damages on all projects including those not subject to the price increase request. The ruling clarifies that a breaching seller's offer of the same goods at a higher price cannot serve as a substitute good for cover under Iowa Code section 554.2712. For parties in similar commercial supply arrangements, this decision reinforces that attempts to renegotiate pricing on existing contracts risk triggering repudiation liability across all outstanding obligations, not merely the specific projects where price demands were made.
Archived snapshot
Apr 25, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Case No. 24-1158
CMT Highway, LLC, an Iowa Limited Company,
v.
Logan Contractors Supply, Inc., an Iowa Corporation
In this breach of contract case, CMT Highway, LLC, seeks further review after the court of appeals affirmed the district court’s decision that a breaching seller’s offer of the same goods at a higher price can never be a substitute good for purposes of “cover” under Iowa Code section 554.2712.
County: Cedar Trial Court Case No.: LACV036721
Applicant
CMT Highway, LLC, an Iowa Limited Company,
Resister
Logan Contractors Supply, Inc., an Iowa Corporation
Attorneys for the Applicant
Steven J. Pace
Samuel E. Jones
Katherine Thorne
Molly Parker
Jackson C. Blais
Caitlin L. Slessor
Joseph C. Creen
Attorneys for the Resister
Michael W. Thrall
Matthew A. McGuire
Roy Leaf
Supreme Court
Oral Argument Schedule
15-15-5
Feb 18, 2026 1:30 PM
Briefs
Appellant Reply Brief (408.56 KB)
Appellee Reply Brief (212.10 KB)
Supreme Court Opinion
Opinion Number:
24-1158
Date Published:
Apr 24, 2026
PDF of the Opinion (164.19 KB)
Court of Appeals
Court of Appeals Opinion
Opinion Number:
24-1158
Date Published:
Jun 18, 2025
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.
PDF of the Opinion (215.31 KB)
Other Information
Date Further Review is Granted:
Sep 24, 2025
Further Review Application (632.33 KB)
Further Review Resistance (220.49 KB) View archived opinions from prior to November 2017
© 2026 Iowa Judicial Branch. All Rights Reserved.
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