Law Commons^™

Trusts - Right Of Trustee's Wife To Dower In Property Held Subject To Oral Trust - Effect Of Subsequent Memorandum - Dower Where Trustee Has Both Legal And Equitable Interest, Michigan Law Review

Michigan Law Review

Pursuant to an oral agreement and upon consideration furnished by them, A, B, and C procured land to be conveyed to A by a third party. Six days later A executed a self declaration of trust in the terms of the oral agreement; that he would operate it, and within a specified period sell the property and divide the proceeds between himself, B and C, as beneficiaries. A suit to remove A as trustee culminated in a judicial sale of the property to B and C. In this proceeding by B and C to quiet title, A …

Election Of Remedies - Deficiency Decree As Bar To Subsequent Suit On Debt, Donald H. Larmee

Michigan Law Review

After foreclosure in Florida of a purchase money mortgage on Florida land, the mortgagee filed a claim for the deficiency against the estate of one of the co-mortgagors, who was a permanent resident of Michigan, and who had been served only by publication in the foreclosure suit. In the foreclosure proceedings the mortgagee had prayed for a deficiency decree, and the Florida court had retained jurisdiction for that purpose, after ordering the sale. The mortgagee had taken no further steps in that proceeding. Held, the Florida law was controlling, and that by Florida statutes, as construed by the courts …

Assignments -Validity Of Gratuitous Written Assignment

Michigan Law Review

Deceased took defendant, his son, to a notary and there made and acknowledged written assignments of three mortgages he owned. He handed these assignments to defendant, saying "I give you these. Put them in the safety-deposit box." Defendant went away with the assignments which reappear only after the father's death; they were found in an envelope, marked with defendant's name in deceased's hand, in a safety-deposit box owned jointly by deceased and defendant. Deceased always retained possession and enjoyment of the actual mortgage instruments. Plaintiff, another son, claims these mortgages should be part of deceased's estate. The court held that …

Adjoining Landowners-Injury From Mining Operations-Right To Prospective Damages

Michigan Law Review

Defendant corporation was conducting its mining operations some distance from plaintiff's land. Plaintiff brought this action to recover for injury to his residence caused by subsidence. The judgment in the trial court represented both actual and prospective damages. On appeal it was held that plaintiff may recover only the cost of repairs. O'Donnell v. Oliver Iron Mining Co., 273 Mich. 27,262 N. W. 728 (1935).

Easements-Implied Grant-Right Of Way-Discontinuous

Michigan Law Review

Plaintiff's testator owned a tract of land on which there were two houses. In 1897 he sold one house, which came to the defendant by various mesne conveyances. Defendant's property was narrow, the sole means of access to the rear of the house being a driveway, wholly situated on the land retained, now owned by the plaintiff. From the time of its erection all occupants of defendant's dwelling had used the driveway as a means of hauling coal and wood to the rear of the house. Plaintiff sought to restrain this use and defendants claimed an implied easement, by grant, …

Equity - Rescission Of Contract Induced By Fraud - Money Judgment As An Alternative To Specific Restitution

Michigan Law Review

Plaintiff entered into an agreement for the exchange of interests in real estate with one of the defendants. After payment of part of the boot money agreed upon, the plaintiff defaulted and sued to have the agreement rescinded for fraud. The trial court rendered a money judgment for the amount at which the plaintiff's property had been taken on the trade. Held, that defendant's wife, to whom the property had been conveyed, should have been joined, and that the decree should be modified to order a reconveyance to the plaintiff. Bacon v. Fox, 267 Mich. 589, 255 N. …

Eminent Domain --Valuation Of Leaseholds -- Apportionment Of Award Between Landlord And Tenant In Long-Term Lease

Michigan Law Review

The Michigan Supreme Court had before it last fall a very unusual case involving the apportionment of a condemnation award between landlord and tenant. Only a portion of the leasehold premises was condemned. The lease still had approximately eighty years to run; it had no market value due primarily to the depression; and it constituted the sole assets of the lessee. The lease contained a clause. providing for rent abatement in case part of the premises was condemned. The lessors insisted that the lessee must be content with this rent abatement and that they were entitled to the whole award. …

Rights In Land - Lateral Support - Statute Increasing Common Law Rights And Duties - Constitutionality

Michigan Law Review

Plaintiff sued for damages to his building which collapsed during excavating operations on defendant's adjoining land. A Michigan statute makes it the duty of land owners excavating to a depth of 12 feet or more below grade level to furnish sufficient lateral support to protect adjacent land and structures thereon from injury "due to the removed material in its natural state, or due to the disturbance of other existing conditions caused by such excavation," and imposes liability for injuries due to failure to comply with the act. The excavation on defendant's land, reaching a depth of 14 feet below grade …

Stare Decisis -The Retroactive Effect Of An Overruling Decision

Michigan Law Review

In 1923 the Supreme Court of Michigan ruled, in Kavanaugh v. Rabior, that property lying between the meander line and the waterline of the Great Lakes belonged to the State. The defendant, after this decision and upon the advice of the State Conservation Department, refused to pay rent to the plaintiff, the littoral proprietor. In 1930 the court, overruling the Kavanaugh case, held, in Hilt v. Weber, that such property belonged to the littoral proprietor. On the basis of this decision the plaintiff brought suit for use and occupation. Held, in the principal case, that the overruling …

Landlord And Tenant - Liability Of A Mortgagee In Possession Of Mortgaged Leasehold For Rent

Michigan Law Review

On default of payments under a mortgage of a leasehold, the mortgagor and mortgagee agreed that the latter was to go into possession of the premises and manage them with a view to meeting the requirements of the mortgage. The mortgagor also executed a warranty deed of the premises to the mortgagee. On default of rent payments the landlord sued the mortgagee. Held, the defendant mortgagee was in possession merely as agent of the mortgagor and as such was not liable for the rent. Cleveland v. Detroit Trust Co., 264 Mich. 253, 249 N. W. 842 (1933).

Highways - Underpass As Highway Use

Michigan Law Review

The defendant was the owner of a gravel pit, separated from his railway shipping facilities by a highway, the fee of a portion of which was owned by the plaintiff. A bill was filed to restrain the construction under the highway of a passageway between the railroad and the gravel pit, permission for which construction had been granted by the state highway commissioner. The bill was dismissed, and on appeal, held, by an evenly-divided court, that the judgment be affirmed. Grand Rapids Gravel Co. v. William J. Breen Gravel Co., 262 Mich. 365, 247 N. W. 902 (1933).

Contracts - Liability Of The Assignee Of A Land Contract - Reformation By Extrinsic Evidence

Michigan Law Review

Defendant Campbell assigned a contract to purchase land from the plaintiff to the defendant bank, the evidence being undisputed that the assignment was additional security for an existing indebtedness of Campbell. A printed form containing a promise by the assignee to pay the purchase price was used. The name of the assignee was left blank in order that the name of a prospective purchaser could be filled in if an anticipated sale materialized. In an action to foreclose the land contract the vendor asked for a deficiency judgment against the defendant bank. Held, that the vendor was not entitled …

Mortgages - Necessity Of Making A Lessee A Party To The Foreclosure Of A Prior Mortgage

Michigan Law Review

A mortgagee foreclosed by a bill in equity without making a lessee, under a lease executed subsequent to the mortgage, a party. In a suit by the purchaser at the foreclosure sale to recover rent from the lessee the court held that the foreclosure put an end to the term and the obligation to pay rent notwithstanding the fact that the lessee was not made a party to the foreclosure proceedings. Dolese v. Bellows-Claude Neon Co., 261 Mich. 57,245 N. W. 569 (1932).

Easements - Creation By Implied Grant-Land Conveyed For A Specific Purpose

Michigan Law Review

The defendant owned property next to a lake which he subdivided into residential lots for the purpose of establishing a summer resort colony. In 1924 he sold one of the lots some distance back from the lake to the plaintiff, and during the negotiations for such sale it was represented that all the lots which bordered on the lake, both in front of and on both sides of the plaintiff's lot, would be improved as a park, that no buildings would be put upon them, and that the plaintiff would have a quiet summer home with an unobstructed view of …

Contracts - Champerty

Michigan Law Review

Plaintiff leased her lands to defendant under a void oil and gas lease. One Johnston induced plaintiff to enter into a contract with him whereby Johnston agreed to pay the costs of a bill to cancel the lease in return for a new lease to himself should the bill be successful. Accordingly, this suit was brought to cancel the lease. The court, agreeing that the existing lease was void, nevertheless dismissed the bill on the ground that the contract between Johnston and plaintiff was void as against public policy, and that plaintiff had no standing in equity. Of the eight …

Non-Assignment Provisions In Land Contracts, Edwin C. Goddard

Michigan Law Review

Many a sale of real estate is made to a purchaser who lacks the ready cash to pay the price. A deed of conveyance may be given with a mortgage back for the unpaid portion of the purchase price. But more and more in recent years the vendor has given a contract to convey conditioned upon the making of periodical payments of stipulated amounts, a deed to be given when the whole or a stated portion of the purchase price has been paid. The initial payment may be very small, and not infrequently the periodic payments are little more than …

Vendor And Purchaser-Right Of Purchaser To Exoneration As To A Prior Vendor's Lien

Michigan Law Review

The case of McClure v. Southfield Woods Corporation, decided by the Michigan supreme court last year, raised an interesting question as to whether a contract vendee of land which is included in a tract subject to a pre-existing vendor's lien has a right of exoneration against his vendor as to such incumbrance. The plaintiff in that case had sold land to the Southfield Woods Corporation by a contract which provided for joinder of the vendor and vendee in a subdivision plat and for release of any lots from the vendor's lien upon payment of a stipulated sum, in addition …

Mortgages -Assignment In Good Faith After Maturity Cuts Off Prior Latent Equities

Michigan Law Review

M executed a negotiable note payable to the order of P, secured by a mortgage. After maturity, P assigned the note and mortgage without his indorsement to X for value. Y procured an assignment of these from X by fraud and in turn assigned them to Z, a purchaser without notice and for value. In Z's suit to foreclose the mortgage, X intervened, demanding the delivery of the same to himself. Held, Z's bona fide purchase cut off X's latent equity. Frank v. Brown, 255 Mich. 415, 238 N. W. 237 (1931).

Railroads-Right To Drill For Oil Or Gas On Right Of Way

Michigan Law Review

A railroad had acquired a one-hundred-foot strip of land through a farm, the deed describing the land granted by metes and bounds, and "for railroad purposes only." For fifty years the defendant has continuously used the strip for railroad purposes. The plaintiff, who became owner of the farm and successor to whatever rights in the strip remained to his grantor, sought to enjoin the defendant from drilling for oil and gas in the strip. Held, that the railroad had purchased a fee simple absolute in the strip and was therefore entitled to develop its own minerals. Quinn v. Pere …

Mortgages - Foreclosure - Right To Receiver Of Rents And Profits

Michigan Law Review

The plaintiff held a large mortgage on apartment property. Upon default in the payment of principal, interest, and taxes a bill of foreclosure was filed against the mortgagor and her grantees who had taken subject to the mortgage. A clause in the mortgage authorized the appointment of a receiver to collect the rents and profits upon default. After hearing, the mortgagee was appointed receiver on the theory that non-payment of taxes constituted waste. Held, that the appointment was unauthorized. Union Guardian Trust Co. v. Rau, 255 Mich. 324, 238 N. W. 166 (1931).

Bailments - Parking Lots

Michigan Law Review

The defendant operated a parking lot in the business section of the city. There were two entrances and exits, the balance of the lot being enclosed by barriers. B parked his car on the lot, paying twenty-five cents and receiving a ticket which stated: "This ticket must be surrendered when car is taken from lot." Attendants were on duty at all times. It was the custom to leave all cars unlocked and at night to move them near a shack which was occupied by the attendants. The car was stolen, and in a suit against the defendant corporation it was …

Mechanics' Liens - Property Subject To Liens - Easements

Michigan Law Review

The Ford Motor Company held a right of way across certain railroad tracks from a street to its plant, and contracted with B to build an underpass and grade separation from the street and under the tracks. Before full performance, the Ford Company discharged B and completed the work itself. Numerous materialmen claimed mechanics' liens for supplies furnished B. Held, the right of passage was an easement appurtenant to the Ford plant and not lienable as such, because severance from the dominant estate would extinguish the easement. A lien on the underpass as a building on the land of …

Adverse Possession-Possession By Church Corporation

Michigan Law Review

This was an action in ejectment. The defendant, a church corporation, claimed title to the land in question, which adjoined the church, by virtue of adverse possession. Held, that the rule that a corporation can show possession only by proving formal corporate acts is inapplicable to a church organization, members of which constitute the corporation, and that the acts of the members of the church in using this property to park cars on, for social purposes, etc., were, in effect, corporate acts of the church so as to vest title in that organization. Davy v. Trustees of Protestant Episcopal …

Adverse Possession-Grantor Against Grantee-Requirement Of Notice

Michigan Law Review

Plaintiff owning a fee deeded it to his wife in 1893. The wife died in 1911, and plaintiff continued lo reside on the land ever since. Shortly after the wife's death plaintiff told defendants, his daughters, that he and his wife had held the land by" entirety, and that he was, therefore, the sole owner by right of survivorship. Defendants never learned of the deed to the wife until the instigation of this suit. Plaintiff claimed that he had reacquired ownership by adverse possession, and brought a bill to cancel the deed to his wife and remove the cloud from …

Contracts-Breach Of Implied Warranty That Construction Be Usable For Purpose Intended

Michigan Law Review

Plaintiff and defendant entered into a contract by the terms of which defendant was to assign to plaintiff an equity in a land contract to purchase a lot. The plaintiff was to complete the payments and sell to the defendant on a land contract this same lot with a house and garage to be erected by the plaintiff, an experienced builder, according to plans and specifications to be drawn by the latter. The defendant was to be given credit for the amount he had previously paid on the lot, and the price was further reduced by the defendant doing the …

Contracts-Rescission For Substantial Breach-Lien For Improvements Given Vendee

Michigan Law Review

For statement of facts see preceding note in this issue, Younger v. Caroselli, 251 Mich. 533, 232 N.W. 378.

According to the majority view in the United States, a builder, whose substantial breach of contract (the instant case can hardly be considered one of substantial performance) is merely negligent and in good faith, can recover the value of his labor and materials less the damage caused the promisee.

Mortgages - Equity Jurisdiction - Personal Decrees Against The Mortgagor

Michigan Law Review

The Michigan supreme court recently held that the jurisdiction of equity in proceedings for the foreclosure of mortgages is governed by statute, and that equity can only render a personal decree against the mortgagor where the statute expressly permits it. This view, if correct, must be recognized as an exception to the well settled doctrine that a court of equity which has obtained jurisdiction of a controversy on any ground or for any purpose, may retain such jurisdiction for the purpose of administering complete relief. Michigan has repeatedly affirmed this general doctrine.

Trusts-When Agent May Purchase Or Lease For Himself

Michigan Law Review

A recent Michigan case has suggested the question: When and under what circumstances may an agent or other fiduciary purchase or lease property for himself, and when will he be decreed a trustee thereof? In this case A owned real estate in Detroit. P and his partners, subtenants, made an offer for a long term lease through D, who appears to have been a special agent with the sole duty of presenting the offer. It was rejected, finally and absolutely, without fraud or collusion on the part of D. Almost immediately D made an offer on his own behalf which …