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668 <br /> <br />Minn. 420 NORTH WESTERN REPORTER, 2d SERIES <br /> <br />police patrols of liquor establishments are <br />concentrated, would unduly burden its lim- <br />ited police resources. <br /> <br /> III <br /> The city claims it is entitled to attorney's <br />fees on appeal because Bergmann's appeal <br />was frivolous, under Minn. Stat.§ 549.21, <br />subd. 2 (1986). The city contends that <br />Bergmann admitted that "his failure to pay <br />the taxes was a sufficient ground for deni- <br />al of his application." Although we could <br />have affirmed the denial of the liquor li- <br />censes solely on the basis of the unpaid <br />taxes, Bergmann did not make the claimed <br />concession. We do not deem this appeal <br />frivolous. Accordingly, we deny the re- <br />quest for attorney's fees. <br /> <br />DECISION <br /> <br />Affirmed. <br /> <br /> Chester JUNAK, et al., Appellants, <br /> <br /> V. <br /> <br /> Roman JOllN, et al., Defendants, <br /> <br /> First National Bank of Long <br /> Prairie, Respondent. <br /> <br /> No. C9-87-1977. <br /> <br /> Court of Appeals of Minnesota. <br /> <br /> March 15, 1988. <br /> Review Denied May 16, 1988. <br /> <br /> Vendor brought action to cancel con- <br />tract for deed, alleging various defaults. <br />After purchasers asserted they were enti- <br />tled to setoff amount claimed under prior <br />suit for breach of covenant not to compete <br />against any amounts claimed by vendors to <br />be due under contract, the District Court, <br />Todd County, Donald Gray, J., ruled that <br />purchasers were not entitled to setoff, and <br />appeal Was taken. Tile Court of Appeals, <br />Foley, J., held that: (i) purchasers of im- <br /> <br />plement business were not entitled to set- <br />off their damages from vendors' alleged <br />breach of covenant not to compete against <br />amount claimed to be due on contract for <br />deed after debt created by vendors' alleged <br />breach was discharged in bankruptcy, and <br />(2) dismissing action alleging breach of cov- <br />enant not to compete before suit was called <br />for trial was error. <br /> Affirmed in part, reversed in part and <br />remanded. <br /> <br />1. Set-Off and Counterclaim ~=8(1) <br /> "Setoff" is equitable doctrine which <br />courts may use at their discretion. <br /> See publication Words and Phrases <br /> for other judicial constructions and <br /> dcfinitlons. <br /> <br />2. Bankruptcy ~=2363 <br /> Discharge of debt in bankruptcy acts <br />as bar to all attempts to collect debt, re- <br />gard]ess of whether these attempts are <br />characterized as active or passive collection <br />efforts; collection of debts discharged in <br />bankruptcy, regardless of method, is con- <br />trary to fresh start afforded debtor under <br />Bankruptcy Code. Bankr. Code, 11 U.S.C. <br />A. § 101 et seq. <br /> <br />3. Bankruptcy ~=~2365 <br /> Purchasers of implement business <br />were not entitled to setoff their damages <br />from vendors' alleged breach of covenant <br />not to compete against amount claimed to <br />be due on contract for deed, after debt <br />created by vendors' alleged breach was dis- <br />charged in bankruptcy. Bankr. Code, 11 <br />U.S.C.A. § 101 et seq. <br /> <br />4. Pretrial Procedure ~:~673 <br /> Dismissing action alleging breach of <br />covenant not to compete before suit was <br />called for trial was error. <br /> <br /> Syllabus by the Court <br /> <br /> 1. Trial court correctly refused to al- <br />low setoff of debt discharged in bankrupt- <br />cy against amount claimed due on contract <br />for deed. <br /> 2. Trial court erred in dismissing a <br />suit that had not been called to trial. <br /> <br /> <br />