Pacific Railways Advertising Co. v. Lion Clothing Co.

The plaintiff and the defendant entered into a written agreement whereby the former bound itself to carry certain advertising matter for the defendant in all cars of certain street and interurban railway lines in and about San Diego, the contract specifically providing that the advertisements should be carried in “end frames in all cars equipped with same. ’ ’ These end spaces for advertising matter are more valuable to advertisers than spaces on the sides of ears, as they come more readily within the range of vision of passengers. The defendant, believing that the plaintiff was committing a breach of the agreement in not giving a proper amount of service in the matter of advertising in the end spaces, gave notice that the contract was at an end and refused to make certain monthly payments provided for in it. The plaintiff sued to recover the amount of these and other installments, judgment went for the defendant, and the plaintiff appeals.

The trial court found that the appellant had not performed its agreement; that, in the month preceding that in which the respondent had attempted to cancel the contract, one of the street-ear companies mentioned in it “changed its street-cars,…