City of Fergus Falls v. Fergus Falls Hotel Co.
Supreme Court of Minnesota
Action in the district court for Otter Tail county to foreclose a mortgage. The case was tried before Cant, J., who found in favor of plaintiff. From an order denying a motion for a new trial, defendant appealed. Municipal corporations have only such powers as are granted by the legislature creating them. Power not granted is withheld; powers granted are strictly construed. 1 Dillon, Mun.
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Action in the district court for Otter Tail county to foreclose a mortgage. The case was tried before Cant, J., who found in favor of plaintiff. From an order denying a motion for a new trial, defendant appealed. Municipal corporations have only such powers as are granted by the legislature creating them. Power not granted is withheld; powers granted are strictly construed. 1 Dillon, Mun. Corp. (3d Ed.) § 89; Coates v. Campbell, 37 Minn. 498. Taking tbe note and mortgage was not only ultra vires, but was contrary to public policy, and a crime. Penal Code, §§ 136, 369, 370. The city cannot…
1DissentBrown, J.
I dissent. My reason for doing so is not that I do not share the sympathy of my brethren for the city of Fergus Falls and its taxpayers, but because the conclusion reached by them is not in harmony with the law as we find it in the books, and is subversive of the best interests of taxpayers and municipalities generally. The decision will tend to encourage public officials inclined in that direction in' the notion that public funds may be lawfully invested In private enterprises, and establish a rule that, although a crime to so divert such funds, the legality of the transaction can be called…
2Cases cited23 opinions
- McDonald v. Mayor of New YorkNew York Court of Appeals · 1876
- Hodges v. City of BuffaloNew York Supreme Court · 1846
- Life & Fire Insurance v. Mechanic Fire InsuranceNew York Supreme Court · 1831
- Ottawa v. CareySupreme Court of the United States · 1883
- New-York Firemen Insurance Co. v. ElySupreme Court of Connecticut · 1825
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