Law Commons^™

Regulation Through The Looking Glass: Hospitals, Blue Cross, And Certificate-Of-Need, Sallyanne Payton, Rhoda M. Powsner

Michigan Law Review

A clear focus on the commitment of the public health and hospital establishments to the large teaching hospital and their belief in rationalizing the health care system through community-based planning allows us to understand the ideas and institutions that have produced our present system of hospital regulation. It can also help us to understand the structure and behavior of the hospital industry and can illuminate current controversies over health care policy.

What follows is a narrative account of the development of regional planning and certificate-of-need legislation. As part of that story, we trace the evolution of the Blue Cross, explain …

Restrictions On Electric Utility Advertising, Michigan Law Review

Michigan Law Review

This Note reconsiders the constitutionality of New York's restriction on advertising by electric utilities. Section I explains how and why the Supreme Court's current analysis of the first amendment distinguishes commercial speech from other forms of speech. Section II looks at what protection is due commercial speech and weighs the competing interests in the specific context of utility advertising. The Note concludes that states may restrict utility advertising to encourage energy conservation.

Fraudulent Conveyances In The Conflict Of Laws: Easy Cases May Make Bad Law, Albert A. Ehrenzweig, Peter K. Westen

Michigan Law Review

It has been said that hard cases often make bad law. The recent decision by the New York Court of Appeals in James v. Powell suggests that easy cases, too, may make bad law-especially where a scholarly judge ventures beyond the demands of the case before him.

Legal Aid--Lay Control And Organizational Complexity Render Oeo Legal Service Program Unacceptable To New York Court--In Re Community Action For Legal Services, Inc., Michigan Law Review

Michigan Law Review

The Office of Economic Opportunity (OEO) and the New York City Council Against Poverty approved the organization and the OEO funding of three legal service corporations as part of a comprehensive program to provide legal assistance to New York City's poor. According to the plan, the first corporation, Community Action for Legal Services, Inc. (CALS), was to approve proposed plans for setting up and operating neighborhood law offices with OEO funds and then to supervise and coordinate the agencies that sought to put those plans into operation. These agencies, operating as delegates of CALS, and under subcontracts with it, were …

The Corporate Mortgage Under Article 9 Of The Uniform Commercial Code And The New York Solution, George C. Coggins

Michigan Law Review

A corporate mortgage has been defined as "an indenture intended to convey property, real and personal, tangible and intangible, to a trustee for bondholders, as security for the bonds issued and to be issued thereunder" by a corporation. This financing device, utilized by many large corporate organizations, has grown to be of paramount importance in the field of corporate financing, and the lack of attention given by the Code to the long-term debts of corporations has raised serious questions of filing procedures. Discussion of the novel treatment accorded by New York to the problem of perfecting security interests in corporate …

Future Interests - Rule Against Perpetuities - Recent Statutory Amendment In New York, Paul K. Gaston S.Ed.

Michigan Law Review

After 128 years of criticism and confusion and enormous amounts of litigation, New York has amended its statutory rule against perpetuities. The old rule provided that the absolute power of alienation could not be suspended for longer, than "two lives in being" at the creation of the estate plus a minority exception in some cases. Under the new rule the absolute power of alienation can be suspended for a period measured by any number of "lives in being" at the creation of the estate so long as they are not "so designated or so numerous as to make proof of …

Banks And Banking-National Banks-Amenability To State Statute Restricting Use Of Word "Savings", Donald M. Wilkinson, Jr. S.Ed.

Michigan Law Review

Defendant, a bank organized under the National Bank Act and transacting business in the State of New York, used the words "saving" and "savings" in various ways in the advertising and conduct of its banking business. The state brought suit, seeking an injunction restraining the use of these words, alleging that in- so using them defendant had violated subdivision 1 of section 258 of the New York Banking Law. In defense, the bank contended that this provision, as it applied to national banks, was unconstitutional as a contravention of federal statutory provisions. The trial court dismissed the complaint on its …

Federal Procedure-Applicability Of State Decisional Law Interpreting State Statutes Of Limitations Under Section 11 (E) Of The Bankruptcy Act, Charles E. Oldfather S.Ed

Michigan Law Review

Plaintiff is the trustee in bankruptcy of a Virginia corporation whose petition for reorganization under chapter X of the Bankruptcy Act was approved by a Virginia federal district court in 1942. Plaintiff filed this action in a New York federal district court under section 11 (e) of the Bankruptcy Act against defendant, the principal stockholder, and others for breach of fiduciary duty. The alleged breaches of duty occurred in 1927 and 1929. The defendant pleaded the New York statute of limitations and contended that it should be applied as interpreted by New York decisions, which hold that the statute begins …

Civil Procedure-Right Of Impleader Under Michigan Contribution Statute, W. J. Roper

Michigan Law Review

Plaintiff, a resident of Michigan, brought a negligence action against defendant, an Illinois corporation, for personal injury in the Federal District Court for the Eastern District of Michigan. The defendant moved to implead a citizen of Michigan and a Michigan corporation as third party defendants on the theory that under the Michigan Contribution Statute as concurrent tortfeasors they would be liable to him for part of the judgment in the event that plaintiff recovered in the suit. The court granted the motion and the defendant filed its third party complaint. Plaintiff then moved to dismiss the third party complaint. Held …

Workmen's Compensation-Injury In Fight As Arising Out Of And In The Course Of The Employment, Philip G. Meengs

Michigan Law Review

Deceased was employed by defendant as an engineer and, while waiting to relieve the engineer then on duty, began to quarrel with him as to the manner in which a subordinate was doing his work. Words led to blows, and after a short fight, deceased collapsed and died of emotional trauma of the heart. There were no other witnesses, but the survivor claimed deceased struck the first blow. From an award given by the Workmen's Compensation Board, defendant and its insurer appealed. Held, affirmed. The death arose "out of and in the course of the employment." Commissioner of Taxation …

Conflict Of Laws-Domicile Of Child Living With Mother, Charles E. Becraft S.Ed.

Michigan Law Review

Plaintiff and defendant, husband and wife, were domiciled in New York. Because of temporary unemployment, plaintiff took his wife and minor child to Connecticut. He later returned to New York and resided in the apartment the family had formerly occupied. The wife and child did not return to New York, and the court found that she had at all times intended to remain in Connecticut and establish a domicile there. Plaintiff at all times intended to make New York his permanent residence. When defendant would not return to New York, plaintiff brought action for separation in a New York court, …

Torts-Right Of Privacy-Invasion Of Privacy Through Fictional Works, Ira M. Price, Ii

Michigan Law Review

The New York Civil Rights Law prohibits the use of a person's name, portrait, or picture without his consent in writing, for advertising or trade purposes, under penalty of civil and criminal liability. Plaintiff, senior civil affairs officer of the American Military Government in the town of Licata, Sicily, during its occupation by Allied Armies of World War II, brought suit under the statute against the author of the book "A Bell for Adana," and others, alleging that he occupied the position of the book's and play's principal character, "Major Victor Jappolo" in the fictitiously named town of Adano; and …

The Function Of Will Contests, Lewis M. Simes

Michigan Law Review

To anyone steeped in the doctrines of the common law there is something anomalous about the will contest. First, the will is duly admitted to probate in a proceeding which is almost universally conceded to be judicial. Then at a subsequent time a so-called contest is brought by the heir, in which the precise proposition determined on the probate is retried. In most jurisdictions the heir is not bound to make any sort of a showing to entitle him to contest. He need not allege newly discovered evidence. He need not submit any evidence of · fraud or mistake. Indeed, …

Is The Business Of Insurance Commerce? A Re-Examination In The Light Of Modern Times, Nathan R. Berke

Michigan Law Review

A question of considerable import which has arisen time and again in recent years, particularly since the enactment of the various federal regulatory acts within the past decade, is whether the business of insurance is commerce. Although not a new question, and by no means unanswered by the courts, it has been a subject of recent reconsideration and in all probability will be reviewed by the United States Supreme Court.

Constitutional Law - Due Process Limitations On Statutes Regulating Extrastate Contracts, Michigan Law Review

Michigan Law Review

Plaintiffs, reciprocal insurance associations which insure against fire and related risks, and whose attorneys-in-fact are located in Illinois, brought a declaratory judgment action in New York state courts for a determination of the applicability to them of the New York law requiring that such co-operative insurance associations obtain a license, or be prohibited from doing "any act which effects, aids or promotes the doing of an insurance business" in New York. As a condition of the license, submission to the New York regulations is required. The activities of the associations within the state of New York include investigation by engineers …

Bankruptcy - Effect Of Discharge - Suspension Of Driver's License For Non-Payment Of Judgment As Conflicting With The Bankruptcy Act, Walter Muller

Michigan Law Review

Under section 94-b of the New York Vehicle and Traffic Law, as amended in 1936 and 1939, if a judgment entered against a driver for 'damages for injury to person or property remains unpaid for fifteen days, the clerk of the court where the judgment was entered must (but only upon written demand of the judgment creditor) forward a copy thereof to the commissioner of motor vehicles, whose duty it then becomes to suspend the driving license of such judgment debtor; further, section 94-c provides (a) that such suspension shall continue for such part of three years as the judgment …

Instalment Payment Of Judgments, Frederick Woodbridge

Michigan Law Review

This article is concerned primarily with a discussion of satisfaction of judgments by instalment payments where the judgment debtor is the typical American wage earner. It is based upon an analysis of the applicable statutes, the experience recorded in decided cases, interviews with numerous judges administering the statutes, and observations in certain of the courts where that method is used.

Criminal Law And Procedure - Extradition Of A Juvenile Delinquent, Felicia I. Hmiel

Michigan Law Review

The state of Georgia, by an acting justice of peace of a county, charged a thirteen-year-old boy with the crime of assault with intent to murder. Under the Georgia Criminal Code the offense was punishable by imprisonment in the penitentiary for a term of two to ten years. The boy was found in the state of New York, whereupon the governor of Georgia sent a requisition for extradition to the governor of New York. The boy defendant brought a habeas corpus proceeding in a New York court to obtain release from custody under the extradition warrant. Held, the defendant …

Municipal Corporations - Constitutional Limitations On Amount Of Debts - Obligations Of Other Public Corporations As Debts Of City, Michigan Law Review

Michigan Law Review

The city of Troy, New York, had obtained federal aid for a Public Works Administration project involving the erection of a new high school building, conditioned upon the city's supplying $786,000 as its share of the cost. The constitutional debt limitation did not permit the city to borrow this amount. The legislature came to the aid of the city and enacted a law providing that the bonds should be issued as "general obligations" of the city school district by the district's board of education. The act expressly stated that the bonds should not be considered as part of the debt …

Municipal Corporations - Constitutional Home Rule, Charles M. Kneier

Michigan Law Review

The home rule provision of the New York. constitution provides that as to the "property, affairs or government of cities," the legislature may pass special or local laws only on message from the governor declaring that emergency exists, and the concurrent action of two-thirds of the members of each house of the legislature is necessary in such cases. In 1936 the legislature passed an act providing for the establishment of the three platoon system for fire departments in all cities of over 1,000,000 population. The act provided for a referendum vote on the question in such cities. A mandamus action …

Constitutional Law - Minimum Wage Decision - Future Of Legislation By States

Michigan Law Review

The shadow of a thirteen-year old decision which many had hoped was laid forever again fell upon the field of minimum wage legislation as the Supreme Court invalidated the New York minimum wage law for women. With this holding, which came as a surprise to many, the issue of the constitutionality of minimum wage legislation was again thrust into the limelight, and with the two great political parties wrestling with the problem of party programs, the decision may have political repercussions, of a force as yet incalculable. Before considering the future of minimum wage legislation, let us take a brief …

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.

Bankruptcy-Debtor Proceedings-Power Of Court To Enjoin State Court Actions

Michigan Law Review

A debtor proceeding was initiated in a Florida federal court and an ancillary proceeding was begun in a New York federal court. The latter court enjoined petitioner, who had obtained a tort judgment against the debtor in a New York state court, which judgment had been affirmed by the Appellate Division, from arguing the case as appellee in the New York Court of Appeals and from continuing to prosecute an action commenced by him (petitioner) against the sureties on an appeal bond filed by the debtor pending the appeal to the Appellate Division. Shares of stock had been pledged by …

Mortgages - Assignment Of Rents And Profits - Michigan Statute

Michigan Law Review

There may be times when legislative action is so obviously dependent upon contemporary circumstances, or when its roots lie so near the chronological surface, that no study of background is possible or necessary. Such is not the case, however, with anything relating to mortgage law; it is too deeply imbedded in our legal system. And though its history be familiar it is felt that a brief review will not be out of place in considering a comparatively recent Michigan statute authorizing the assignment of rents and profits.

Divorce - Domicil - Recognition Of Foreign Decrees, Florence K. Frankel

Michigan Law Review

The New York Court of Appeals has re-emphasized some well-established principles of divorce jurisdiction in the recent case of Fischer v. Fischer. In a suit involving the validity of a second marriage, W proved a Nevada divorce from her first husband, a citizen of New York, who had been served in New York but had not appeared to defend the litigation. The court denied recognition to the Nevada decree because W's residence in Nevada, while it conformed with the statutory requirements of that forum, was proved to have been acquired solely for the purpose of securing a divorce. The …

Equity-Power To Reform-Effect Of Statute Of Frauds

Michigan Law Review

The plaintiff made an oral contract to sell certain shares of stock to the defendant at a price of $1,160 a share, as a result of a telephone conversation. On the same day the plaintiff sent the defendant a written confirmation of the sale, in which the price of $1,060 a share was inserted by mistake. The New York Statute of Frauds makes such a contract unenforceable unless a note or memorandum thereof be in writing. Held, that although the parties intended to make a memorandum of the oral contract which they had made, the memorandum was of a …

Negligence-Spread Of Fire-"New York Rule."

Michigan Law Review

The properties of plaintiff and defendant were separated by a city street. While filling a gasoline tank on his premises defendant allowed the tank to overflow, the escaping gasoline ignited, the fire spread to a warehouse on defendant's property and thence, across the street, to plaintiff's buildings. Held, that the negligence of the defendant was the proximate cause of the injury to the plaintiff, within the so-called "New York Rule" of limited liability in such cases, inasmuch as the titles of the two parties ran to the center of the street. Homac Corporation v. Sun Oil Co., 244 …

Trusts-Right Of Trustee To Reimbursement For Tort Liability

Michigan Law Review

The recent New York case, In re Lathers presents the question seldom before raised whether a trustee may be reimbursed from the trust estate for tort liability to a third person through his negligence in management of the estate. In that case, as a result of fire in an apartment building of the trust property, the trustee suffered judgments for $62,000 plus costs. The rooms of one apartment, rented by the trustee's agent, had been closed off by the lessee to form several small apartments. For the one subleased to the tort creditor, access to fire escapes, adequate normally, was …

Public Utilities-Power Of Commissoin To Change Rates Set In Franchise Granted By Legislature

Michigan Law Review

The Dry Dock Company was given franchises by the legislature to operate street railways in New York City, by Laws 1860, c. 512, and Laws 1866, cc. 866, 868, 883. These special laws fixed a five-cent maximum fare. Much later, the Public Service Commission Law (Cons. laws, c. 48) was enacted. Sec. 29 of this provided that, "unless the commission otherwise orders, no change shall be made in any rate * * * which shall have been filed and published by a common carrier * * * except after 30 days' notice to the commission * * * and all …

Extension Of Judicial Review In New York, Edward S. Corwin

Michigan Law Review

There are several reasons why it should be worth while to investigate the operation of the most unique of American governmental institutions in the most important state of the Union. For one thing, in the person of Chancellor KZN" New York furnished one of the founders of American Constitutional Law, while at the same time it was KzNT's fame that early gave New York decisions the importance they still retain in great part in the field of citation and precedent. Again it was YNT'S influence that inclined the fresh shoot of constitutional jurisprudence in New York in a conservative direction, …