Pacific Coin Lock Co. v. Coin Controlling Lock Co.

On February 23, 1915, appellee entered into a continuing contract with one Garrison conferring upon him the right to use and rent in California and Texas coin controlled locks which it manufactured and upon which it held letters patent. One of Garrison’s obligations was an annual rental charge at the rate of $10 per lock, one half to be paid on the 1st day of January and the other half on the 1st day of July of each year, beginning with January 1, 1915. On the day it was executed, the contract was, with appellee’s consent, assigned by Garrison to the appellant, who thus succeeded to all his rights and obligations thereunder. The contract being in force, appellant on January 1, 1923, paid one-half the stipulated rental for that year for locks on hand. On April 23, 1923, it notified appellee that it had terminated the contract and surrendered the 604 locks of which it then had possession. Thereupon appellee promptly commenced this action to recover damages in a large amount for alleged breaches of the contract. The cause finally came to issue upon a second amended complaint, the answer thereto in which a counterclaim was set up, and a reply to this counterclaim. Jury trial was…