This section contains the nature of the case and procedural background.

D is the owner of the Hiawatha Supper Club in Eagle River, Wisconsin, which he leased during 1972 and 1973 to James Piekarski. During the lease P, at the request of Piekarski, resurfaced the access and service areas of the supper club, providing labor and materials with a reasonable value of $2,540, and increasing the value of the property by the same amount. D was aware that this work was being done and 'stood by and acquiesced' in its completion. Piekarski did not pay for the work and was subsequently adjudged bankrupt, with no assets in his estate for the payment of P. D now has the benefit of the improvements but refuses to pay for them, and P has not been paid for any portion of the work. P sued D seeking compensation. D demurred to an amended complaint on the ground that it failed to state a cause of action. The trial court sustained the demurrer and denied the P leave to further amend the complaint. P appealed.

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