Hayes Const Co v. Silverthorn

In Hayes Const Co v. Silverthorn, 343 Mich 421; 72 NW2d 190 (1955), an experienced general contractor brought suit against a heating subcontractor for allegedly defective furnaces. The plaintiff-contractor alleged that the defendant-subcontractor had committed fraud when he persuaded plaintiff to install the allegedly defective furnaces by stating that the maintenance was nil, that they were reasonably priced, and that they would do the job that the plaintiff needed done. In addressing the plaintiff's fraud claim, the Michigan Supreme Court explained: We are here in the realm of what the common law has for years termed 'puffing,' a salesman's praise of his own property, involving matters of estimate or judgment upon which reasonable men may differ. Ordinarily these are not regarded as actionable, even though the vendee's joys of realization fail short of those of his anticipation. The reason for this lies in the realities of commercial intercourse. The relationship of the parties may, however, impose more stringent requirements. One party may have special knowledge and the other none and without the means of getting it. In this case the latter cannot fairly and reasonably exercise his own judgment. The parties, therefore, do not stand on equal terms and the buyer has a right to rely upon the representations of excellence made by the seller. Id. at 426-427.