McCarthy Bros. v. McLean County Farmers Elevator Co.

118 N.W. 1049, 18 N.D. 176, 1908 N.D. LEXIS 110
North Dakota Supreme Court·Decided December 14, 1908·Published·Cited by 2 cases

Opinion

Morgan, C. J.

This is an action for the recovery of money upon contract, and at the time that the summons was issued a writ of. attachment was procured, and thereafter levied upon the property-of the defendant the McLean County Farmers’ Elevator Company. The sole contention between the parties on this appeal is as to the [178] sufficiency of the affidavit on which t'he writ of attachment was issued. So far as the question in issue is concerned, the affidavit is as follows: “And that the defendants have sold, assigned, transferred, secreted, or otherwise disposed of, or are about to sell, assign, transfer, secret, or otherwise dispose of, their property, with the intent to cheat or defraud their creditors, or to hinder or delay .them in the collection of their debts.’’ The McLean County Farmers’ Elevator Company and P. J. Hester appeared in the action, and moved to dissolve the attachment on the ground “that the said attachment was improvidently issued * * * without the filing of a sufficient and proper affidavit for attachment.” After a hearing 'upon said motion the district court granted the same, and vacated the levies which had been made under .the writ. Subsequently, and within the time prescribed by the statute, the plaintiff appealed to this court from the order vacating the attachment.

Respondents contend that the affidavit states no ground for attachment, for the alleged reason that two distinct grounds are stated in the affidavit, and that such distinct grounds are connected by a disjunctive conjunction, which fact renders the statements of the affidavit meaningless and inconsistent. The appellant contends that but one ground is stated in the affidavit, and that such ground is set -forth in literal compliance with the provisions of the statute. The statute prescribing what an affidavit for attachment shall state is as follows (section 6938, Rev. Codes, 1905) : “In an action on a contract or judgment for the recovery of money only, the wrongful conversion of personal property, or for damages, whether arising out of contract or otherwise, the plaintiff, at or after the commencement thereof may have the property of the defendant attached in the following cases: * * * (4) When the defendant has sold, assigned, transferred, secreted or otherwise disposed of, or is about to sell, assign, secrete or otherwise dispose of his property, with intent to cheat or defraud his creditors, or to hinder or delay them in the collection of their debts.” Although the authorities do not agree as to the construction which statutes like the one before us should receive, we are agreed they should be construed so that groups or classes of facts of conditions, connected disjunctively and placed under one subdivision as grounds for an attachment, should be deemed but one ground where they relate, in a general way, to-one subject or condition, or to different phases of one general subject, leading to one and the same result. [179] In this case the subject dealt with under subdivision 4 is the fraudulent sale or assignment or disposition of property with fraudulent intent as a ground of attachment. Whether the defendant is about to assign or sell, or has assigned or sold, his property with fraudulent intent, it is equally a ground for an attachment. Whatever the state of the transaction contemplated is, it is equally a ground for attachment, whether the sale has been consummated, or is in process of completion. The result is the same as to the fraudulent character of the transaction. In either case it is fraudulent, and is a ground for issuing an attachment writ. It is often very difficult, if not impossible, to determine whether the fraudulent scheme has been consummated, and that fact would often render an attachment wholly ineffectual if the creditor must determine beforehand whether the fraudulent sale has been completed or is in process of completion. It will be noticed that the affidavit is in the exact language of subdivision 4 of said section 6938. Other subdivisions of that section relate to other grounds of attachment in the alternative. For instance, subdivision 2 of the section states as a ground of attachment that the “defendant has absconded or concealed himself.” Subdivision 3 states as a ground for attachment that the defendant “has removed, or is about to remove,” his property. We think it therefore clear that it was the legislative intention to make the facts stated in subdivision 4 of said section 6938 a separate ground of attachment, and, when they are stated in the language of the subdivision, are to be considered as one ground of attachment only, although stated disjunctively. The intent was, it seems clear to us, to include as one ground of attachment a sale, or contemplated sale, of one’s property with fraudulent intent.' The disjunctive conjunction “or” in such cases is not meant to connect independent grounds, but different phases of one ground.

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McCarthy Bros. v. McLean County Farmers Elevator Co., 118 N.W. 1049, 18 N.D. 176, 1908 N.D. LEXIS 110 (N.D. 1908).

118 N.W. 1049 (McCarthy Bros. v. McLean County Farmers Elevator Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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