Home-improvement chain Menard Inc. has sued the Toledo Free Press accusing the weekly newspaper of failing to inform the company of declining circulation or to adjust its billing for advertising services.

In a complaint filed in Lucas County Common Pleas Court, the Eau Claire, Wis.-based company accused the Free Press of fraud, breach of contract, and breach of covenant of good faith and fair dealing.

“Since October of 2009, [the Free Press’] circulation quantities have declined,” the complaint alleges. “During this time, [the newspaper] received monthly orders for circulating print advertisements. … [the Free Press] routinely verified the orders without changing the circulation amount.”

The paper sent invoices to Menard that did not reflect declining circulation numbers, meaning the company was overpaying the newspaper for advertising services, the complaint alleges.

Under the fraud section of the lawsuit, Menard’s claims “Defendant’s representations were false, as its circulation quantities had declined significanty.”

Menard also claims that beginning in January, 2012, the newspaper began sending its advertising fliers “to ZIP codes other than those directed by” Menard.

The complaint alleges the Free Press “intended to mislead” Menard because it “was paid by the number of print advertisements it circulated.”

The company sustained losses by creating excess fliers and overpaying the newspaper for ads that were not distributed in the designated ZIP codes, Menard claims. The complaint, assigned to Judge Myron Duhart, seeks compensatory damages of $21,597, punitive damages of more than $25,000, and “attorney fees, costs, and other expenses incurred in bringing this action.”

Lawyers for the two sides did not return calls Wednesday seeking comment.

Last year, the Free Press received Lucas County’s six-figure contract to publish its list of tax delinquencies. Carol Contrada, one of the county’s three commissioners, said it might be appropriate for the county prosecutor’s office to investigate whether that contract was properly fulfilled, while colleague Pete Gerken deferred comment to county Auditor Anita Lopez.

Ms. Lopez did not respond to an inquiry Wednesday evening.