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40 Minn. 80

Cole v. Aune

Supreme Court of Minnesota

Decided January 29, 1889

Supreme Court of Minnesota · decided 1889-01-29

Appeal by plaintiff from an order of the district court for Otter Tail county, Baxter, J., presiding, vacating an attachment. The affidavits showed that by written agreement the defendant was to serve plaintiff as clerk in his store for a certain time at a salary of $60 per month and one-half the net profits of the business; but defendant’s share of the profits was not to be payable until the profits should be ascertained by an accounting, which was never had.

Key passage — most relied on by later courts

““The term ‘debt’ is differently defined, according to the subject-matter and language in connection with which, it is used. Rtrietly, it denotes a sum of money due upon contract, arising from the agreement of parties.””

quoted by 1 later decision, including In re Western Implement Co.

Relies on Newell v. People Ex Rel. Phelps · Armstrong v. Cowles

Good law ✅— No negative treatment on recordhow we know

Decided 1889-01-29

How this case has been cited

Cited by 4 later decisions — most recently June 1922

1 district · 3 state decisions

2018891890190019101920decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

View the full empirical analysis of this case →

Vanderburgh, J.

¶1The affidavit for the attachment shows the existence of a fiduciary relation between the parties. The agency of the defendant, the extent of his powers and compensation, were-, clearly defined in the written contract set forth in the affidavit. It also appears that the defendant has wrongfully appropriated to his. own use, without plaintiff’s consent, and contrary to the terms of the contract, a large amount of money belonging to his principal, in excess of the amount due him for his compensation. The affidavit shows a fraudulent conversion of the money sued for, and the plaintiff, therefore, contends that the debt or liability was fraudulently created or incurred, and that a case is made for an attachment, under the provision of the statute which allows the writ to issue “when, the plaintiff’s debt was fraudulently contracted.” Section 145, c. 66,. Gen. St. 1878, allows an attachment in actions for the recovery of money; and section 147 provides for the allowance of the writ when-the plaintiff shall make an affidavit *. “specifying the-amount of the claim, and the ground thereof, and that the plaintiff’s.. debt was fraudulently contracted.” The clause last quoted refers-generally to the claim sued on, whether tbe latter is a debt in a strict, technical sense or not. The term “debt” is differently defined, according to the subject-matter and language in connection with which-' it is used. Strictly, it denotes a sum of money due upon contract,, arising from the agreement of parties. In a'more enlarged sense, ifc may mean any just claim or demand for the recovery of money; that which one person owes and is bound to pay to another. New Jersey *82Ins. Co. v. Meeker, 37 N. J. Law, 282, 301; Newell v. People, 7 N. Y. 9, 124; Com. v. Keeper of the Jail of Philadelphia, 4 Serg. & R. 505. Strictly speaking, a “debt” is said “to be contracted,” and a “liability incurred;” but,, when the term “debt” is interpreted in the enlarged sense, the strict signification of the word “contracted” may also be modified, so as to extend to liabilities other than those directly growing out of the contracts of parties. So held in Carver v. Braintree Mfg. Co., 2 Story, 432. See, also, Robinson v. Vale, 2 Barn. & C. 762. In Armstrong v. Cowles, 44 Conn. 44, a different construction was adopted; but there the statute was in a sense penal in its nature, and a strict construction was proper. Here the statute under ■consideration is a remedial one, and must be liberally construed to advance the remedy. The question to be considered is the. intent of the legislature, to be fairly gathered from the nature and object of the statute, and the context in connection with which the particular words are used. We think the construction of the statute contended .for by the plaintiff is warranted, and that the writ was properly allowed in this case.

¶2Order reversed.

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