Law Commons^™

Estoppel And Statutes Of Limitation, John P. Dawson

Michigan Law Review

Among all the spheres of its activity estoppel probably performs no more useful service than in the alleviation of hardship caused by statutes of limitation. Here as in other places the elements of estoppel and its relations to more basic legal concepts are exceedingly hard to define. At some points its effects on limitation acts could be described in terms of express contract; at other points it merges into "fraud"; in general it provides the medium for official expressions of disapproval where civil litigation exceeds the permissible limits of private warfare.

Public Utilities -- Rate-Base -- Late Supreme Court Decisions

Michigan Law Review

In fixing the rate-base of a telephone company, the Maryland Public Service Commission translated the agreed 1923 rate-base (with all subsequent additions to plant) to 1933 price levels by means of a composite price index which included both general all-commodity indices, and indices particularly adapted to the telephone business. Held, that an order enjoining enforcement of the rates will be affirmed. West v. Chesapeake & Potomac Telephone Co., (U.S. 1935) 55 S. Ct. 894.

Banks And Banking - Collections -"Cash Or Solvent Credits"

Michigan Law Review

The plaintiff drew an out of town draft and deposited it with the A bank for collection. The A bank sent the draft to its correspondent, B bank, to collect and make return when actually paid. The B bank collected the amount of the draft and, according to a custom between the two institutions, credited the account of the A bank and sent them a notice of collection. On the very day this notice was received the B bank closed its doors. A statute provided that items deposited for collection should be credited subject to final payment in cash or …

Bills And Notes -"Massachusetts" Trust- Liability Of Trustee Under Section 20 Of The N. I. L

Michigan Law Review

Plaintiff sued the trustee of a realty business trust in his personal capacity on three notes signed by him as follows: "Robert J. Smith, Trustee of Fair Haven Estates." The notes were given in payment of the purchase price of certain land sold by the plaintiff to the defendant, which was secured by a purchase money mortgage. The indenture of trust under which the business was carried on, and which was recorded, provided that all persons who did business with the organization should look only to the trust funds for reimbursement, and neither the trustee nor the shareholders should be …

Constitutional Law - State Police Power - Regulation Of Advertising By Dentist

Michigan Law Review

Plaintiff, a practicing dentist, brought an action to enjoin the enforcement of a section of Oregon legislation regulating the practice of dentistry, which defined certain types of advertising and solicitation as unprofessional conduct and, as such, ground for the revocation of a license to practice. The section was upheld by the state supreme court and plaintiff appealed to the United States Supreme Court, alleging that the statute was unconstitutional in that it impaired the obligations of existing contracts and violated the "due process" and "equal protection" clauses of the Fourteenth Amendment. Held, that the statute was a valid exercise …

Contracts - Effect Of Agreement That Instrument Shall Be Without Legal Effect

Michigan Law Review

Defendant gave one of its employees a certificate stating that in case of the death of the employee while still in defendant's employ, defendant would pay to the beneficiary designated by the employee a stated sum of money. The certificate contained this further provision: "The issue and delivery of this certificate is understood to be purely voluntary and gratuitous on the part of this Company and is accepted with the express understanding that it carries no legal obligation whatsoever or assurance or promise of future employment, and may be withdrawn or discontinued at any time by this company." In a …

Deeds - Effectiveness Of Deeds Delivered With Blank For Name Of Grantee

Michigan Law Review

In an action upon an oral contract to recover the purchase price of an equity in realty, it appeared that the plaintiff executed a deed with a blank left for the name of the grantee and delivered it to the defendant, whereupon the latter refused to make the promised payment, and suit was brought. The Statute of Frauds being interposed as a defense, on the theory that the contract, being oral, was unenforceable in the absence of a showing of part performance, it was held, that the delivery of the incomplete deed, giving the defendant implied authority to fill …

Physicians And Surgeons-Voluntary Sterilization-Public Policy

Michigan Law Review

Plaintiff, advised by his physician that further pregnancy would endanger the life of his wife, submitted to an operation of vasectomy. Defendant physician informed him that the operation had been successful and that he could resume sexual relations with his wife without fear. The wife, however, became pregnant and plaintiff alleged that as a consequence he suffered mental agony and was put to great expense. He sued his physician on the theory of deceit in falsely representing to him that he was effectively sterilized. The lower court sustained a demurrer on the ground that the contract was contrary to public …

Trusts - Constructive Trusts - Breach Of Fiduciary Relation Between Husband And Wife With Respect To Oral Agreement Concerning Land

Michigan Law Review

In her last illness, Mrs. Jackson desired to transfer realty to her married daughter, plaintiff herein. To prevent creditors of the daughter's husband from reaching the property, Mrs. Jackson conveyed the land to her husband, Mr. Jackson, with the parol understanding that "he would see that Cora got it." Jackson failed to transfer the land and upon his death it passed under an ante-nuptial settlement to defendant, his second wife. In an action to recover the land, the court stated that defendant was in the position of a bona fide purchaser for value, and held that the statute of frauds …

Wills - Gift's - Construction Of Instrument

Michigan Law Review

Decedent had lived with plaintiff and her parents. In 1932, after telling plaintiff's parents that he had some money in the bank, decedent said, "I got a will here . . . I understand I have got to have two signatures." Both parents, at his request, signed the instrument below.

"Dear Carlotta

"I give to you my money in Live Stock Bank.

"Hans Larsen

"April 16, 1932

"Witness: Michael C. Kelley

"Mamie V. Kelley."

Decedent put the instrument in his bank book and took it into the other room where plaintiff was sitting. He said, "Carlotta, I will give you …

Practice And Procedure - Reservation Of Decision On Motion For Directed Verdict As Means Of Avoiding Unnecessary New Trials

Michigan Law Review

What may be done to remedy the situation if a jury brings in a verdict in favor of a party against whom a verdict should have been directed? This question becomes pertinent in view of the fact that judges, while hard pressed by counsel in the heat of trial, frequently wrongfully deny a motion for directed verdict and submit the case to the jury. One obvious remedy is the granting of a new trial by the trial judge, or by an appellate court after reversal. But this practice has proved eminently unsatisfactory, for it submits the aggrieved party to the …

Administrative Law - Liability Of Public Officers Exercising Quasi-Judicial Functions

Michigan Law Review

Defendants as duly authorized municipal officers issued a building permit to the plaintiff. After plaintiff had acted in reliance thereon defendants for reasons of self-interest and political expediency revoked the permit. Held, defendants as quasi-judicial officers while acting within their jurisdiction are not liable personally in tort for damages resulting from a discretionary act notwithstanding their conduct may have been malicious or corrupt. Wasserman v. City of Kenosha, (Wis. 1935) 258 N. W. 857.

Constitutional Law -The Railroad Retirement Act - Interstate Commerce - Due Process

Michigan Law Review

Serious obstacles were placed in the path of social legislation by the Supreme Court's decision holding the Railroad Retirement Act unconstitutional.1 To what extent the narrow view taken of the permissible field of regulation of interstate commerce will interfere with other legislation based on the commerce power remains to be seen. The majority of the Court, speaking through Mr. Justice Roberts, found the Act objectionable both as violating the due process clause of the Fifth Amendment of the Constitution and as not being a regulation of commerce under the commerce clause. Before taking up these two aspects of the case, …

Easements - Extinguishment By Adverse Possession Of Servient Owner - Character Of Acts Necessary

Michigan Law Review

In I 902, Y, the owner of riparian land, granted to W, by deed then recorded, the flowage rights over such land. Some years later by general warranty deed containing no reference to the easement, the servient land was conveyed to L, from whom by similar successive conveyances it came to the plaintiff. In the interval the flowage rights had passed to the defendant, and in 1931 the latter erected a dam across the river and flooded the plaintiff's land. Thereupon the plaintiff brought this action for damages. The trial court held that, though all the owners …

Constitutional Law-Exclusion From Juries On Grounds Of Race And Color-Scottsboro Case

Michigan Law Review

A negro convicted of rape in one of the so-called "Scottsboro" cases moved to quash the indictment and the trial venire, alleging systematic exclusion of negroes from the grand and petit juries on the grounds of race and color. The trial court overruled the motions, and the Alabama Supreme Court sustained this decision, holding that the evidence failed to establish such exclusion. On certiorari to the United States Supreme Court, held, that the refusal to quash the indictment and trial venire was a denial of equal protection of the laws contrary to the Fourteenth Amendment, since the evidence on …

Legislative Attack On "Heart Balm", Nathan P. Feinsinger

Michigan Law Review

Public resentment over the abuses incident to "heart balm" suits has recently culminated in sweeping legislative reform. Through the repeated efforts of a woman legislator, Indiana has abolished actions for seduction of females over twenty-one years of age, for breach of promise to marry, and for criminal conversation and alienation of affections. Almost immediately New York, and shortly thereafter Illinois, passed similar legislation, and at least ten other states are now considering analogous proposals.

Has The Constitution Gone?, John A. Fairlie

Michigan Law Review

As far back as 1828, Chief Justice Marshall is quoted as saying: "Should Jackson be elected, I shall look upon the government as virtually dissolved." A few years later, when Taney was appointed Chief Justice by Jackson, Daniel Webster wrote: "Judge Story thinks the Supreme Court is gone, and I think so too." Soon afterwards, when the newly constituted Court rendered decisions upholding statutes from which Story dissented, the latter wrote to Judge McLean: "There will not, I fear, ever in our day, be any case in which a law of a State or of Congress will be declared …

Corporations-State Privilege Taxes-Valuation Of Property To Determine Surplus

Michigan Law Review

Various bases have been evolved in this country for computing corporation privilege taxes. Of special interest is the fact that seven states have made corporate surplus together with capital the basis for such taxes - Louisiana, Michigan, Mississippi, Missouri, North Carolina, Ohio, and Texas. The statutes of these states adopt either the gross value or the net value of the assets of corporations as the foundation of the tax, depending upon whether or not liabilities may be deducted. In fixing the amount of such a tax, some valuation of corporate property to determine the corporation's surplus is necessary.

Corporations - Double Liability Of Ex-Director Registered As Stockholder For Qualifying Shares

Michigan Law Review

Defendant received ten shares of stock in a national bank under a trust arrangement for the purpose of qualifying him as a director. The shares were transferred on the bank's stock books to the defendant as absolute owner. At the end of his term as director defendant terminated the trust arrangement but did not have a transfer made upon the stock books. Plaintiff, receiver upon failure of the bank, sued for an assessment under U. S. C. tit. 12, sec. 64. Held, since it is conclusively presumed that creditors become such in reliance on the statutory liability of those …

Corporations - Exculpatory Provision In Bond - Stockholders' Liability For Illegal Dividends

Michigan Law Review

A bondholders' protective committee sued a holding company under a Michigan statute making stockholders in street railway companies, who knowingly receive dividends in impairment of capital stock, liable for corporate debt then existing and subsequently accruing while they remain stockholders. The defense relied on was a "no recourse" clause in the bonds wherein the creditors waived their rights to any assessment whatsoever "against any incorporator, stockholder, officer or director of the railway company, or any successor corporation." Held, the "no recourse" clause waived only liabilities where the defendant acted in good faith; not where the defendant acted fraudulently in …

Corporations - Reorganization Under Section 77 B - Right Of Mortgage Trustee To Vote To Exclusion Of Bondholders

Michigan Law Review

The trustee under a mortgage bond issue which was in default with foreclosure pending, sought to vote to the exclusion of the bondholders on a proposed plan for reorganization in a voluntary proceeding by the corporation debtor pursuant to Section 77B of the Bankruptcy Act. The trust indenture authorized the trustee on default to enforce the security by appropriate proceedings, and the individual bondholders were specifically forbidden to sue. The indenture also gave a majority in interest of the bondholders power by an instrument in writing to direct the procedure of the trustee or to remove him. There was no …

Corporations-Section 77b Of The Bankruptcy Act-To What Corporations It Applies

Michigan Law Review

Creditors of a title and mortgage company which had gone into receiver's hands petitioned for a reorganization of the company under Section 77B of the Bankruptcy Act. Held, that the company was an insurance corporation. Insurance corporations are not amenable to Section 77B. Petition for reorganization dismissed. In re New York Title and Mortgage Co., (D. C. N. Y. 1934) 9 F. Supp. 319.

Domestic Relations-Right Of Wife To Consortium-Negligent Injury To Husband

Michigan Law Review

Plaintiff sued for loss of the opportunity to bear children by her husband resulting from his emasculation caused by defendant's negligence. The court below dismissed the complaint. Held (one judge dissenting), judgment affirmed. Such a cause of action has never been recognized. It cannot be said that the wrong is the proximate cause of the loss because of the many elements of doubt and conjecture in connection with the birth of children. Landwehr v. Barbas, 24I App. Div. 769, 270 N. Y. S. 534 (I934).

Fraudulent Conveyances - Change Of Beneficiary Of Life Insurance Policy Formerly Payable To Insured's Estate

Michigan Law Review

An insurance company filed a bill of interpleader to determine disposition of the proceeds of a term policy on the life of one Fitzpatrick, now deceased. Claimants are the administrator, representing creditors, and the deceased's two sons. The policy had been issued payable to insured's estate, but reserved the right to change the beneficiary. A few days before his death (by suicide) deceased sent the company an application for change of beneficiary to his two minor sons. He was then hopelessly insolvent, and the administrator claims that the change of beneficiary was a fraudulent conveyance within the terms of the …

Taxation - Assessment For Property Taxes

Michigan Law Review

In 1926 the plaintiff purchased a lot with the building thereon for $41,000 and expended $ 10,000 in the improvement of the premises. In the same year the property was leased for a period of fifteen years under an agreement that the rent was to be $6,000 for the first five years, $8,000 for the second five, and $10,000 for the third. Plaintiff objected to the tax assessment of $68,660 for the years 1929, 1930, 1931, and 1932 on the grounds that the court based its valuation on (1) actual earnings instead of earning capacity, and on (2) gross, as …

Trusts - Mortgage Participations As Trust Investments -Effect Of Invalidity

Michigan Law Review

The Commercial Savings Bank and Trust Company of Toledo, Ohio, in March 1931, executed an instrument called a Declaration of Trust, in which it recited that it had transferred to its trust department certain notes and mortgages for the purpose of issuing certificates of participation therein. The notes alone were physically transferred to the trust department, the mortgages being retained by the real estate loan department of the bank. The real estate loan department also collected the interest and principal on the notes transferred to the trust department. The Declaration of Trust expressly authorized the trust department to make substitutions …

The Enforcement Of Foreign Judgments In Anglo-American Law, Hessel E. Yntema

Michigan Law Review

Conflicts of laws are the necessary result of the division of judicial business. There are too many legal actions arising in localities too diffused to be tried in a single court or system of courts; consequently, litigation has to be distributed, and a highly complex body of jurisdictional regulations has been evolved to control the distribution. Once admit the multiplicity of courts, and diversities of law appear. Not only does the procedure in particular courts respond in some degree to the local traditions of the bar and to the specialized needs of the communities served, but indigenous precedents and practices …

Constitutional Law--Mortgages--Frazier-Lemke Act

Michigan Law Review

In 1922 and 1924 appellee mortgaged property worth $18,000 to secure a loan of $9,000 from appellant which was to be repaid in installments over a period of thirty-four years. Default being made on the covenants in the mortgage, the mortgagee declared the full amount due and brought a suit to foreclose. Proceedings were stayed when the appellee sought relief under Section 75 of the Bankruptcy Act, but he was unable to obtain the requisite majority in number and amount to the composition proposed. The state court entered a foreclosure judgment and ordered a sale. The mortgagor then sought relief …

Corporate Reorganization-Section 77 Of The Bankruptcy Act--Power Of Court To Enjoin Sale Of Bonds Pledged As Collateral

Michigan Law Review

The recent Chicago, Rock Island case raised an interesting problem under Section 77 of the Bankruptcy Act. The Chicago, Rock Island as parent railroad of a system extending into one-fourth of the states, had pledged large blocks of its own mortgage bonds and those of its subsidiaries, as security for loans made to it by the Reconstruction Finance Corporation and some Chicago, New York, and St. Louis banks, under an agreement whereby the pledgees were given a power of private sale, without notice, upon set contingencies. In addition to the above it had previously pledged with trustees as security for …

Criminal Law And Procedure -Automobiles - Constitutional Law-Criminal Liability Of Owner Of Automobile

Michigan Law Review

The recent decision of the Supreme Judicial Court of Massachusetts in the case of Commonwealth v. Ober has brought to the fore a serious administrative problem arising out of the enforcement of traffic regulations. The problem is particularly acute in the illegal parking cases. Here it is usually impossible for the policeman to do more than tag the car, take down its registration number, and institute proceedings against the registered owner. The difficulty also often occurs in many other situations such as driving through red lights or stop streets where the offense is observed by a patrolman standing near by …