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Walker & Co. v. Harrison

Supreme Court of Michigan
81 N.W.2d 352 (1957)



Harrison (defendant) operated a dry-cleaning business. Walker & Co. (Walker) (plaintiff) sold, rented, and serviced advertising signs and billboards. Harrison and Walker entered into an agreement whereby Walker agreed to build and install a neon electric sign on Harrison’s property that would be leased to Harrison for a term of thirty-six months at $148.50 per month. The lease also provided that Walker would maintain the sign during the lease, and that title to the sign would revert to Harrison at the end of the lease. Walker completed and installed the sign in July 1953. Harrison made one payment for the month of August, but then noticed maintenance issues with the sign. The sign was hit with a tomato, and Harrison complained of rust and cobwebs in the sign’s corners. Harrison contacted Walker to request the maintenance of the sign he believed he was due under the contract, but Walker did not perform the requested maintenance. Harrison informed Walker by telegraph that he would make no further payments on the sign. A week later, Walker cleaned the sign. Walker then sent a letter to Harrison stating that if Harrison stopped paying rent, the matter would be turned over for collection to Walker’s attorney. Harrison made no additional payments, and Walker sued for the entire balance due under the contract, or $5,197.50. Harrison counterclaimed for damages on the ground that Walker breached its contractual obligation to perform maintenance on the sign. The trial court granted judgment for Walker amounting to the cash price of the sign, the services and maintenance by Walker that were already extended and accepted by Harrison, and interest for the amount owed by Harrison. Harrison appealed.

Rule of Law


Holding and Reasoning (Smith, J.)

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