Bridge Gap Engineering, LLC v. American Pfeiffer Corp.

Court of Appeals of Iowa·Decided October 1, 2025·No. 24-0524·Published

Opinion

IN THE COURT OF APPEALS OF IOWA

No. 24-0524

Filed October 1, 2025

BRIDGE GAP ENGINEERING, LLC, a Pennsylvania limited liability company, on its own behalf and as assignee of MISSOURI CEMENT, L.L.C. d/b/a CONTINENTAL CEMENT COMPANY, L.L.C., Plaintiff-Appellant,

vs.

AMERICAN PFEIFFER CORPORATION, a Pennsylvania corporation d/b/a CHRISTIAN PFEIFFER AMERICA and CHRISTIAN PFEIFFER MASCHINENFABRIK, GMBH, Defendants-Appellees.

Appeal from the Iowa District Court for Scott County, John D. Telleen, Judge.

An engineering firm appeals the district court’s award of damages on remand from a summary judgment ruling. AFFIRMED.

James S. Zmuda (argued) and Keisha N. Douglas of Califf & Harper, P.C., Moline, Illinois, for appellant.

Ian J. Russell (argued), Grace E. Mangieri, and Jenny L. Juehring of Lane & Waterman, LLP, Davenport, for appellees.

Heard at oral argument by Greer, P.J., and Badding and Chicchelly, JJ.

Telleen, S.J., takes no part.

BADDING, Judge.

When this case was first before our court on appeal, the district court had awarded Bridge Gap Engineering $6,635,617.62 in damages from an uncontested motion for summary judgment in its suit against Christian Pfeiffer for breach of contract, negligent misrepresentation, and fraud.1 In that appeal, we reversed the court’s denial of Christian Pfeiffer’s motion to reconsider the damage award and remanded for the court to decide whether a “liquidated-damages provision applies to Bridge Gap’s causes of action and to enter a summary judgment order with the appropriate award of damages.” Bridge Gap Eng., LLC v. Am. Pfeiffer Corp., No. 21-1966, 2022 WL 3053290 (Iowa Ct. App. Aug. 3, 2022).

Consistent with that direction, the district court issued a remand decision finding the liquidated-damage provision applied and reducing Bridge Gap’s damage award to $114,750. Bridge Gap appeals, claiming the provision does not apply and, even if it does, the court miscalculated its damages. Finding no error of law, we affirm. I. Background Facts and Proceedings As we explained in the first appeal, in February 2018, Bridge Gap contracted with Continental Cement Company, L.L.C. to upgrade the company’s Davenport cement plant by installing a new high-efficiency separator from Christian Pfeiffer. The total contract price that Continental owed Bridge Gap was $6,453,500, later increased through a change order to $6,770,935. The next

1 Bridge Gap sued both American Pfeiffer Corporation, which is based in Pennsylvania, and its manufacturing parent company in Germany—Christian Pfieffer Maschinenfabrik GmbH. As we did in the first appeal, we will refer to these defendants collectively as Christian Pfeiffer.

month, Bridge Gap submitted a purchase order to Christian Pfeiffer to buy the separator for $765,000. There were three attachments to the purchase order: (1) a fine-print “terms and conditions for purchase of goods and services”; (2) Exhibit A, a “Document List for HES Project in Davenport IA” from Bridge Gap’s underlying contract with Continental; and (3) Exhibit B, titled “Performance Guarantee,” which was also from the Bridge Gap–Continental contract.

The first page of the purchase order stated, “Equipment performance to comply with previously agreed guarantees which are part of the final contract included as ‘Exhibit B.’” Section a.3 of Exhibit B set out the required performance guarantees,2 while section a.4 laid out “damages for deficient performance.” Paragraph 6 of section a.4, titled “Total Damages,” provided the following damage limitations:

NEITHER THE CONTRACTOR NOR OWNER SHALL BE LIABLE UNDER THE CONTRACT OR UNDER ANY CAUSE OF ACTION RELATED TO THE SUBJECT MATTER OF THIS CONTRACT, WHETHER IN CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, PRODUCTS LIABILITY, PROFESSIONAL LIABILITY, INDEMNITY, CONTRIBUTION OR ANY OTHER CAUSE OF ACTION, FOR AMOUNTS IN EXCESS OF THIRTY PERCENT (30%) OF THE CONTRACT PRICE (AS MAY BE ADJUSTED BY CHANGE ORDER); PROVIDED, HOWEVER, NOTWITHSTANDING THE FOREGOING, THE LIMITATION OF LIABILITY SET FORTH IN THIS SECTION (A) SHALL NOT:

(i) APPLY IN THE EVENT OF THE CONTACTOR’S OR OWNER’S WILLFUL MISCONDUCT OR GROSS NEGLIGENCE; OR (ii) INCLUDE THE PAYMENT OF PROCEEDS UNDER ANY INSURANCE POLICY SPECIFIED IN THE CONTRACT.

SUBJECT TO SECTION a.4 OF EXHIBIT B, THE CONTRACTOR’S MAXIMUM LIABILITY TO THE OWNER FOR PERFORMANCE LIQUIDATED DAMAGES IS 15% OF THE CONTRACT PRICE IN THE AGGREGATE.

2 One guarantee promised to increase cement production by 17.4 percent, while the other promised to decrease power consumption by 10.7 percent.

REGARDLESS OF ANY OTHER PROVISION OF THE CONTRACT, THE CONTRACTOR AND OWNER SHALL NOT BE RESPONSIBLE OR HELD LIABLE TO THE OTHER PARTY FOR ANY LIABILITY FOR LOSS OF PROFITS, LOSS OF REVENUE, LOSS OF PRODUCT, LOSS OF CUSTOMERS, UNABSORBED OVERHEAD, HOME OFFICE OVERHEAD, ADDITIONAL INTEREST OR FINANCE CHARG[E]S OR BUSINESS INTERRUPTION OR FOR ANY TYPE OF CONSEQUENTIAL, PUNITIVE, SPECIAL, EXEMPLARY OR INCIDENTAL DAMAGES, ARISING FROM ANY CAUSE WHATSOEVER, WHETHER OR NOT SUCH LOSS OR DAMAGE IS BASED IN CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, INDEMNITY OR OTHERWISE.

After the separator was installed, Bridge Gap alleged the finish mill system at Continental’s plant failed to conform to the required performance guarantees set out in Exhibit B to the purchase order. So Bridge Gap, on its own behalf and as assignee of Continental, sued Christian Pfeiffer for breach of contract, negligent misrepresentation, and fraud, with a demand for $7,000,000 in damages.

Bridge Gap moved for summary judgment on all three of its claims in August 2021. Christian Pfeiffer failed to file a resistance. The district court accordingly set a hearing on the motion, noting that Bridge Gap had not alleged “a sum certain for judgment.” At the unreported hearing in November, Bridge Gap submitted several exhibits on damages, including a breakdown of its requested damages, totaling $6,635,617.62. The breakdown did not state whether the damages sought were for breach of contract, negligent misrepresentation, or fraud. After the hearing, the court entered a ruling for Bridge Gap:

On the issue of damages for Plaintiff’s Motion for Summary judgment, the court received affidavits and exhibits into evidence without objection from Defendants. The court finds Plaintiff is entitled to damages in the total amount of $6,635,617.62 as detailed in Exhibit 4. Judgment is entered granting Plaintiff’s Motion for

Summary judgment as Defendants never resisted the motion and still have not done so.

Christian Pfeiffer filed a motion under Iowa Rule of Civil Procedure 1.904(2), asking the court to reconsider the damage award and arguing that the liquidated-damages provision in Exhibit B to the purchase order applied to limit Bridge Gap’s recovery to fifteen percent of the total contract price. The court denied the motion, finding it was “improper now for Defendants to claim there is additional evidence supporting a different amount of damages.”

On Christian Pfeiffer’s appeal from that ruling, we determined the provision was not new evidence, reasoning:

Indeed, a contract cannot be new evidence if it underlies the dispute. Here, the district court relied on the performance guarantees when entering judgment in Bridge Gap’s favor. The contract was central to Bridge Gap’s right to recover damages. And that same contract contained the liquidated-damages provision that the court did not consider when awarding damages. Thus the court was mistaken in considering the provision to be “additional evidence”

to support Christian Pfeiffer’s position.

Bridge Gap Eng., LLC, 2022 WL 3053290, at *5. We concluded that the court “should have considered the entire performance guarantee contract when awarding damages as part of its summary judgment order” and remanded “for further proceedings to determine the applicability of the liquidated-damages provision.” Id.

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