Todd v. Bettingen

124 N.W. 443, 109 Minn. 493, 1910 Minn. LEXIS 599
CourtSupreme Court of Minnesota
DecidedJanuary 21, 1910
DocketNos. 16,120—(5)
StatusPublished
Cited by31 cases

This text of 124 N.W. 443 (Todd v. Bettingen) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Todd v. Bettingen, 124 N.W. 443, 109 Minn. 493, 1910 Minn. LEXIS 599 (Mich. 1910).

Opinion

JAGGARD, j.

This case has been before this court on other issues (98 Minn. 170, 107 N. W. 1049), in which the complaint was construed to set forth a cause of action for recovery of damages upon breach of a contract, void under the statute of frauds.

[496]*496The complaint in this action- was for money had and received. So far as here involved, it set forth: Pursuant to an oral agreement, plaintiff delivered to defendant shares of stock of the value of $31,500. The defendant delivered stock in another company of the value of $11,000, but failed and refused to convey a -described tract- of land which he had contracted to transfer. The contract was void under the statute of frauds. Plaintiff sought to- recover the- full value of his stock less the value of defendant’s stock. He demanded judgment for the excess of consideration. -Defendant demurred,- on the ground that the complaint did not state facts sufficient to constitute a cause of action. This appeal was taken from the order overruling the demurrer.

1, The first controversy to be determined is whether, in any view, the action in its present form can be maintained. Because the defendant did not receive money from the plaintiff, can he recover for money had and received? It has frequently been said “it must in general appear'that the defendant has received money, and not merely money’s worth, as stock or goods,” in order that he may recover for money had and received. 1 Chitty, PI. 351. And it has, indeed, been held that the action will not lie where no money has been received. Nightingal v. Devisme, 5 Burr. 2589. And see Jones v. Brinley, 1 East, 1; Taylor v. Higgins, 3 East, 169; Morrison v. Berkey, 7 Serg. & R. 238; Beardsley v. Root, 11 Johns. 464, 6 Am. Dec. 386; Dean v. Mason, 4 Conn. 428, 10 Am. Dec. 162; Carlisle v. Dunn, 5 Blackf. 605; Updike v. Armstrong, 3 Scam. 564; Boyer v. Bullard, 102 Pa. St. 555, 558; Burnap v. Partridge, 3 Vt. 144; Moyer v. Shoemaker, 5 Barb. 319. There are other authorities to the same effect.

None the less we are of opinion that the action for money had and received lay, although the defendant did not receive money, but stock, from the plaintiff. The fundamental theory of this action is nowhere better stated than by Lord Mansfield. We quote his views at some length, because of the misapprehension of the nature of the action which has appeared from time to time in arguments before this court. In Moses v. Macferlan, 2 Burr. 1005, at page 1012, he says:

“This kind of equitable action, to recover back money, which ought • not in justice to be kept, is very beneficial, and therefore much en[497]*497couraged. It lies only for money which, ex sequo et bono, the defendant ought to refund; it does not lie for money paid by the plaintiff, which is claimed of him as payable in point of honor and honesty, although it could not have been recovered from him by any course of law, as in payment of a debt barred by the statute of limitations, or contracted during his infancy, or to the extent of principal and legal interest upon an usurious contract, or for money fairly lost at play, because in all these cases the defendant may retain it with a safe conscience, though by positive law he was barred from recovering. But it lies for money paid by mistake, or upon a consideration which happens to fail, or for money got through imposition (express or implied), or extortion, or oppression, or an undue advantage taken of the plaintiff’s situation, contrary to laws made for the protection of persons under those circumstances. In one word: The gist of this kind of action is that the defendant, upon the circumstances of the case, is obliged by the ties of natural justice and equity to refund the money. * * *”

Even at common law the remedy was considerably extended, and its further extension commended. In Longchamp v. Kenny, 1 Douglas, 137, Lord Mansfield said: “Great benefit arises from a liberal extension of the action for money had and received, because the charge and defense in this kind of action are both governed by the true equity and conscience of the case.” The difficulty encountered at common law, that a court of law may in this form of action go too far in the doctrine of equitable rights (Lord Alvanley, C. J., in Johnson v. Johnson, 3 B. & P. 162, at page 169), is not presented in jurisdictions which, like this, are governed by the so-called code pleading. A fortiori, the extension should be favored in such a jurisdiction.

That system of pleading is designed to administer justice unhampered by the artificial distinctions and technicalities of the mere form of action, or by the observance of strict demarcation between law and equity. The inadequacy of a remedy under its traditional limitations is rarely a controlling objection to its use. This court has for convenience adopted the use of the common counts, and has sometimes under the circumstances presented enforced the [498]*498distinctions between the various particular forms as between the counts for labor performed and services rendered and the counts for moneys paid for goods sold and delivered, for moneys paid, and for moneys had and received. But such distinctions under different circumstances have been ignored. Certainly no rule has been announced as to the limitations on the present count which must here be slavishly adhered to at the expense of practical justice. There is neither reason nor logical precedent for laying stress upon the difference between an action “for money had and received” and one “as for money had and received.” The fundamental theory of the action to compel one who is unjustly enriched at the expense of another to disgorge applies equally whether the cause of action arose through the retention of money or of tangible property which is not money.

On principle, the dictates of consistency and expediency justify the use of the count for money had and received, although the party sought to be charged has received, not money, but other property.

This court has, indeed, repudiated the doctrine for which defendant contends. This was practically done in Wyvell v. Jones, 37 Minn. 68, 33 N. W. 43. It is true that the action in that case was not for money had and received, but for goods sold and delivered. However, consistently with the tendency of the court not to place great importance upon this distinction, it based its opinion expressly upon, and followed, Bennett v. Phelps, 12 Minn. 216, 219 (326), and Taylor v. Read, 19 Minn. 317 (372), in both of which the forms of action were for money had and received. It is true, however, that in Bennett v. Phelps, 12 Minn. 216, 219 (326), the cattle were taken at an agreed value and detained as payment of that amount. In Proctor v. Stevens Land Co., 94 Minn. 181, 102 N. W. 395, it was expressly held that “the vendee of an executory contract may recover, as for money received, the value of a stock of merchandise turned over to the vendor to apply upon the purchase price of land, upon a failure on the part of the vendor to comply with the agreement to convey.” It is true that the action sought to cancel a contract for the sale of land on the ground fof fraud; but, true to its disregard of mere forms of actions, Lewis, J., said at page 185 of 94 Minn., and page 397 of 102 N. W.: “The Question of fraud is immaterial in this case in determining the [499]*499rights of the parties. Conceding that defendant was acting in good faith, and expecting to perfect title, plaintiffs were entitled to recover what they advanced as money had and received, and the complaint is comprehensive enough for that purpose. Taylor v.

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Bluebook (online)
124 N.W. 443, 109 Minn. 493, 1910 Minn. LEXIS 599, Counsel Stack Legal Research, https://law.counselstack.com/opinion/todd-v-bettingen-minn-1910.