Plaintiff contracted to purchase from defendant 40,000 plastic door handles and a 4-cavity die which was to be used by defendant in their manufacture. After the die had been made by defendant and paid for by plaintiff and after 7,674
Defendant thereupon instituted suit against the plaintiff in the common pleas court for the city of Detroit for his damages resulting from plaintiff’s refusal to continue performance of the contract. Plaintiff’s defense in that suit was that it was excused from further performance by virtue of defendant’s prior breach of the warranty of fitness. The common pleas court judge found that defendant had breached his warranty and denied him recovery on his suit on the contract.
In the meantime, plaintiff instituted this suit in the Wayne county circuit court for recovery of the amount it had paid defendant for the die, its costs incurred to repair the door handles delivered, the increased purchase price it had to pay for brass handles over defendant’s contract price for plastic handles, and interest thereon. Trial of the case was delayed from time to time by apparent agreement of the parties until decision in the common pleas court case, and thereafter until its affirmance on appeal to the circuit court and then to this Court. See
Ladney
v.
Ternes Steel Co.,
Shortly after we affirmed the judgment in Ladney v. Ternes Steel Co., plaintiff moved for summary judgment in this suit, claiming that its damages were liquidated and that our affirmance of Ladney v. Ternes Steel Co. was res judicata of defendant’s breach of warranty. *
Defendant filed an affidavit of merits opposing entry of summary judgment on the ground that
Defendant prosecutes this appeal, asserting as grounds for reversal: (1) a triable issue of fact existed as to damages thereby precluding entry of a summary judgment, and (2) plaintiff is barred from suing for damages for breach of warranty because of the rule against splitting a cause of action, plaintiff having relied upon the breach of warranty as a defense in the first suit.
Plaintiff does not deny the soundness of the proposition that summary judgment may not be entered when damages are unliquidated, but insists that the defendant admitted plaintiff’s damages by failing to answer the unverified bill of particulars contained in plaintiff’s declaration as required by court rule. Court Rule No 23, § 2 (1945), provides in part:
“Every material allegation in the declaration or bill to which the defendant shall not make answer shall be taken as admitted by the defendant. * * * When an unverified bill of particulars is filed with any of the common counts, the answer shall deal with the items therein set forth in the same manner as though they were alleged in the declaration.”
The trial court ruled that defendant, having failed to deny the items of damages listed in plaintiff’s bill of particulars, must be deemed to have admitted the amount of damages. In this we think he erred. A major portion of the damages consisted of plaintiff’s claim for $1,224.23, being the difference between the contract price for plastic door pulls and what plain
Defendant’s second ground for reversal, that use of his breach of warranty as a defense in the first case bars its use in this case as a basis for affirmative relief, was not pleaded below nor was it argued to, or considered by, the trial judge. Although not determinative of this appeal
(Poelman
v.
Payne,
The contention is sometimes cast in terms of
res judicata,
in the sense that a prior adjudication is a bar to a subsequent action, and sometimes in terms of the rule against splitting a cause of action. An analogous situation was before our Court in
Leslie
v.
Mollica,
In other words, plaintiff can plead defendant’s breach of warranty as a defense in the first suit, he can plead it as a defense and as a counterclaim in the first suit, or he can sue thereon subsequently for affirmative relief, but he cannot combine the alternatives. Once he raises the- issue, it must be fully and finally determined.
Notes
Quite obviously, plaintiff meant that the prior judgment was res judicata pro vertíate accipitur, that is, that determination of defendant’s breach of warranty in the first action is conclusive evidence of such breach in the present action.
