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Cooperative Associations And The Public, John Hanna Dec 1930

Cooperative Associations And The Public, John Hanna

Michigan Law Review

The American Institute of Cooperation at its first summer meeting in Philadelphia in 1925, devoted many hours to a consideration of the definition of agricultural cooperation. Even at that time cooperative associations had been described, if not defined, by federal legislation. The Bureau of Internal Revenue, the War Finance Corporation and the Intermediate Credit Banks, had also been compelled on numerous occasions to decide whether or not a particular association was entitled to the privileges accorded cooperatives. A determination of the nature of a cooperative was implied in the standard marketing acts adopted in nearly all of the American states. …


Claims Against The Creditor As Defenses To The Surety, H. W. Arant Dec 1930

Claims Against The Creditor As Defenses To The Surety, H. W. Arant

Michigan Law Review

In the absence of statutory provision, where the surety is sued alone, the generally accepted view is that he can not show the existence of a claim in favor of his principal against the creditor for the purpose of preventing or decreasing the creditor's recovery against him. The view has frequently been applied where the surety, sued alone, sought to set up the creditor's breach of warranty as a defense. It recognizes that such a breach of warranty gives rise to a cause of action against the creditor that belongs solely to the principal debtor. It also recognizes the possibility …


Bankruptcy-Voluntary Petition By Incompetent On Court Order Dec 1930

Bankruptcy-Voluntary Petition By Incompetent On Court Order

Michigan Law Review

A state court adjudged B to be insane, committed him to an asylum, appointed G as guardian of his estate, and later authorized G to file a voluntary petition in bankruptcy on behalf of B. Such a petition was filed by G, the schedule of liabilities showing debts contracted before B was adjudicated insane. The federal district court adjudicated B a bankrupt and appointed a trustee in bankruptcy, who sued C to recover an alleged preference paid to C by B. C then sought to set aside the adjudication of bankruptcy on the ground that an insane person could not …


Carriers-Counterclaim-Shipper's Counterclaim In Carrier's Action For Freight, As Illegal Discrimination Dec 1930

Carriers-Counterclaim-Shipper's Counterclaim In Carrier's Action For Freight, As Illegal Discrimination

Michigan Law Review

To the railroad's action to recover unpaid freight, the shipper set up as a counterclaim his loss (an amount greater than the freight) from damage to that shipment due to the plaintiff's negligence. The United States district court for the southern district of California held for the defendant, that this might be done. Upon appeal, the circuit court of appeals for the ninth circuit certified the question: Where a carrier brings an action at law to recover freight charges-in a district where state law provides that if a defendant fails to set up a counterclaim arising out of the transaction …


Constitutional Law-Crimes-Waiver Of Jury Dec 1930

Constitutional Law-Crimes-Waiver Of Jury

Michigan Law Review

The accused, on trial for a felony, was permitted by the trial judge to waive a jury. The trial before the judge alone resulted in an acquittal. The state's attorney petitioned for a writ of mandamus to expunge from the record the orders to dispose of the cause without a jury and for discharge of the accused, on the ground that the court had no jurisdiction to hear and determine the cause. Held, writ of mandamus denied. People ex rel. Swanson v. Fisher (Ill., 1930) 172 N.E. 722.


Bills And Notes -- Principal And Agent--Payment To Agent Of Drawer Upon Indorsement Forged By The Agent Dec 1930

Bills And Notes -- Principal And Agent--Payment To Agent Of Drawer Upon Indorsement Forged By The Agent

Michigan Law Review

A was an agent of P for the purpose of securing applications for loans and disbursing the money to the borrowers. The custom was for P, after approving the application, to send to A a check drawn on D bank, payable to the joint order of A and the borrower. It was also the custom for A, in following out the course of dealing outlined by P, to secure the borrower's indorsement, add his own, deposit the check to an agency account in X bank, and then pay out the money to the borrower by personal checks on his agency …


Bills And Notes-Checks-Right Against Drawer-Presentation For Payment Within Reasonable Time Dec 1930

Bills And Notes-Checks-Right Against Drawer-Presentation For Payment Within Reasonable Time

Michigan Law Review

Defendant delivered a check on an Austin bank to the plaintiff at his farm, seven and one-half miles from Austin. On the fourth business day following, plaintiff deposited the check to his account with another Austin bank. Before the latter could collect, the drawee bank failed. From the date of the check to the drawee's failure, defendant had sufficient funds on deposit to pay the check. The plaintiff, on the three business days after receipt of the check, stacked corn fodder. His home was located on a good gravel road leading to Austin; and he owned an automobile. Held, …


Evidence--Physician-Patient Privilege--Express And Implied Waiver Dec 1930

Evidence--Physician-Patient Privilege--Express And Implied Waiver

Michigan Law Review

Defendant's intestate applied for insurance with "plaintiff, expressly waiving, for himself and beneficiaries, the privilege of excluding testimony of physicians who had then attended him or might do so later. The policy lapsed, but the insured, falsely representing that he was in good health and had consulted no doctor for any cause, secured a reinstatement. He died six months later. Plaintiff sued for cancellation, and defendant objected to the testimony of physicians who had been consulted before and after the reinstatement. Held, the testimony was admissible, since the privilege was waived; also the mere fact that there were consultations …


Constitutional Law-Due Process-Statutory Interpretation As Judicial Legislation Dec 1930

Constitutional Law-Due Process-Statutory Interpretation As Judicial Legislation

Michigan Law Review

Plaintiff brought suit in Missouri to enjoin collection of taxes alleged to be discriminatory, basing his claim for equitable relief on the absence of any other remedy. The supreme court of Missouri dismissed the bill, without hearing on the substantive question, on the ground that there existed, under a state statute, an adequate remedy in appeal to the state tax commission. Previously the court had denied, in several cases, that the statute gave such a right, and had allowed equitable relief in one case on that ground. When the decision in the principal case was rendered, it was too late …


Torts-Negligence-Bailee's Negligence As A Bar To An Action By The Bailor Against A Third Party Dec 1930

Torts-Negligence-Bailee's Negligence As A Bar To An Action By The Bailor Against A Third Party

Michigan Law Review

The plaintiff's son borrowed the plaintiff's automobile for an evening's pleasure trip in which the plaintiff had no interest. While on this trip, the automobile was damaged as a result of the negligence of the defendant and the driver of the plaintiff's automobile. Held, the relation of the plaintiff to his son was that of bailor and bailee, but that the negligence of the bailee could not be imputed to the bailor so as to bar recovery for the damage to the automobile in an action against the negligent defendant. Robinson v. Waffen (Me. 1930) 151 Atl. 10.


Torts--Joint Tort-Feasors-Release Or Covenant Not To Sue Dec 1930

Torts--Joint Tort-Feasors-Release Or Covenant Not To Sue

Michigan Law Review

Plaintiff was injured while she was a passenger in a taxicab as a result of a collision of the cab with a motor truck. After starting a suit against the taxicab company, plaintiff signed a written agreement, whereby, in consideration of the payment to the plaintiff of $1,032.40 by the cab company, plaintiff agreed not to prosecute any suit pending, nor to file any suit against the cab company for any damage growing out of the collision, and to pay all costs in the said pending suit. The agreement also declared that the promise of the plaintiff should in no …


Partnership-Dissolution By Death Of Partner Dec 1930

Partnership-Dissolution By Death Of Partner

Michigan Law Review

Suit was brought by holders of certificates of deposit against the defendants as partners in an insolvent private bank. At the trial plaintiffs amended their petition by alleging that though defendants called themselves a partnership, they were in law and fact a joint stock company. But they failed to strike out the first allegation. The articles of agreement provided for a manager and a financing committee and for transferable stock, but transferable only to those whom the committee might admit. Several of the shareholders were deceased previous to the time the liability was incurred by the manager, and the status …


The Supreme Court's Construction Of The Self-Incrimination Clause, Edward S. Corwin Dec 1930

The Supreme Court's Construction Of The Self-Incrimination Clause, Edward S. Corwin

Michigan Law Review

The second pivotal decision of the court in construction of the self-incrimination clause is that in Counselman v. Hitchcock, decided in 1892. An advantageous approach to it is furnished by certain earlier state and federal court decisions applying the common law regarding the privilege of witnesses.


Receivers-Penalties On Taxes Dec 1930

Receivers-Penalties On Taxes

Michigan Law Review

The recent case of McCormick v. Puritan Coal Mining Co. presents the question whether penalties and interest continue to accrue on delinquent taxes after the date of the appointment of a receiver. The court determined the question in the negative, supporting its decision by authorities which hold that interest does not ordinarily accrue on the debts of an insolvent after the date of the appointment of a receiver. The decision is directly contrary to the established rule that tax penalties and interest continue to accrue, notwithstanding the property has passed into the hands of a receiver.


Banks And Banking--Damages--Liability Of Bank To Depositor For Wrongful Dishonor Of Check Dec 1930

Banks And Banking--Damages--Liability Of Bank To Depositor For Wrongful Dishonor Of Check

Michigan Law Review

In an action by a creditor against his debtor for the non-payment of the debt, the ordinary measure of damages for non-performance of the contract is the sum of money itself with interest at the legal rate from the time it was due. Tradition has it that the relation between bank and depositor is that of debtor and creditor. Clearly, it is a contractual relationship. The contract, however, is not merely to pay the creditor but also to pay, on his behalf, such third persons as he may designate. It is not an adequate description to say, merely, that the …


Constitutional Law -Elections - Constitutionality Of The Corrupt Practices Act-The Kohler Case Dec 1930

Constitutional Law -Elections - Constitutionality Of The Corrupt Practices Act-The Kohler Case

Michigan Law Review

The relator brought an action to test the right of the defendant Kohler to the office of governor of the state of Wisconsin, asserting that his election was invalid for violation of the Corrupt Practices Act, particularly in that he had expended more than $100,000 for political purposes in violation of the provision of the act limiting such expenditures for candidates for governor to $4,000. The defendant demurred to the petition, asserting that the Corrupt Practices Act is void and unconstitutional as applied to the governor because (1) the statute seeks to prescribe either qualifications for the office of governor …


Divorce - Recrimination As A Defense Dec 1930

Divorce - Recrimination As A Defense

Michigan Law Review

If both parties have a right to divorce, neither party has. This judicial pronouncement, paradoxical and puzzling as it must seem, at least to the lay mind, nevertheless embodies the kernel of the doctrine of recrimination as it is applied in divorce cases by modem courts. One party seeks divorce and proves beyond doubt that he or she is entitled to relief. But, if it is found that the complaining party too, is guilty of conduct for which a divorce may be granted, the court turns a deaf ear to both. For, in the oft quoted words of Chancellor Wallworth, …


Aliens-Naturalization-Doctrine Of The Schwimmer Case Dec 1930

Aliens-Naturalization-Doctrine Of The Schwimmer Case

Michigan Law Review

Applicant, a minister's daughter, and a nurse during the world war, refused to take the oath prescribed by the Commissioner of Naturalization, since her religious scruples forbade her personally bearing arms. Another applicant, a professor of divinity at Yale University, and a chaplain in the Canadian army during the war, stated that, in view of religious convictions he was not willing to bear arms, unless in his own opinion war was ,necessary and in the best interests of humanity. The district courts denied both applications. On appeal, the circuit court of appeals for the second circuit reversed both decisions. Held …


Aviation-Trespass-Nuisance Dec 1930

Aviation-Trespass-Nuisance

Michigan Law Review

Land-owners sought to enjoin flight over their property as a trespass and nuisance; and to enjoin as a nuisance the use of the adjoining field as a base from which to make such flights. Held, injunction denied because of insufficient evidence of injury. Flight at 500 feet or more was impliedly authorized by the statute forbidding flight lit less than that attitude over buildings or persons. Mass. Acts, 1922, ch. 534, sec. 1 sub-sec. 55. As to occasional flights over unoccupied brush land at a height of about 100 feet in landing or taking off, injunctive relief was denied …


Corporations-Dissolution-Distribution Of Assets Between Preferred And Common Stockholders Dec 1930

Corporations-Dissolution-Distribution Of Assets Between Preferred And Common Stockholders

Michigan Law Review

The Commonwealth Hotel Construction Co. became insolvent, and, after the creditors had been paid in full, the preferred and common stockholders disagreed to the distribution of the remaining assets. The articles of incorporation provided that the holders of preferred stock should be entitled to dividends at the rate of seven per centum per annum which should be cumulative "so that, if dividends for any past dividend period at the rate of seven per centum per annum shall not have been paid thereon or set apart therefor, the deficiency shall be fully paid or set apart, but without interest, before any …


Master And Servant-Parent And Child-Liability Of Master When Servant Negligently Injures His Own Son Dec 1930

Master And Servant-Parent And Child-Liability Of Master When Servant Negligently Injures His Own Son

Michigan Law Review

Plaintiff was injured through the negligence of his father who was employed by the defendant. The parent was acting within the scope of his employment at the time of the injury. Held, plaintiff could recover from his father's employer, even though the child could not have sued his father. Chase v. New Haven Waste Material Corporation (Conn. 1930) 150 Atl. 107.


Corporations-Dissolution-Distributi0n Of Assets Between Holders Of Fully And Partially Paid Stock Dec 1930

Corporations-Dissolution-Distributi0n Of Assets Between Holders Of Fully And Partially Paid Stock

Michigan Law Review

On the insolvency of the Commonwealth Hotel Construction Co. and after, the creditors had been paid in full, there were assets on hand for distribution among the stockholders. The holders of partially paid stock requested that the assets be distributed in proportion to the amounts which the various stockholders had paid in. This in effect meant that the losses were to be proportional to the amounts paid in, instead of being proportional to the amounts which the stockholders had contracted to pay, and was resisted by the holders of fully paid stock as being inequitable. The chancellor (after holding in …


Negligence-Res Ipsa Loquitur-Presumption Of Management From Ownership-Unattended Automobile Dec 1930

Negligence-Res Ipsa Loquitur-Presumption Of Management From Ownership-Unattended Automobile

Michigan Law Review

After the sound of a crash, the defendant's motortruck was found on the plaintiff's porch. Held, the doctrine of res ipsa loquitur was applicable.


Corporations-Book Value Dec 1930

Corporations-Book Value

Michigan Law Review

A owned 500 shares of preferred stock which was subject to redemption, by the terms of the certificate of incorporation, at, the "book value of the stock as shown by the last annual statement of assets and liabilities of the company submitted to and approved by the board of directors." The board voted to redeem at a price which by reference to the statement was fixed at $323.21 per share. A's bill alleged among other things that this was an artificial and undervalued estimate; that the directors had fraudulently approved the statement for their benefit as common stockholders; that the …


Crimes-Reasonable Doubt-Necessity Of Defining-Definition Dec 1930

Crimes-Reasonable Doubt-Necessity Of Defining-Definition

Michigan Law Review

In a criminal case, the defendant requested an instruction defining the term "reasonable doubt." The court refused the request and the defendant excepted. Held, the instruction should have been given. State v. Vukich (Wash. 1930) 290 Pac. 992.


Marriage-Validity Of Marriage Terminable At Will Of The Parties Under Soviet Law Dec 1930

Marriage-Validity Of Marriage Terminable At Will Of The Parties Under Soviet Law

Michigan Law Review

Petitioner married the respondent in Moscow, in 1924, the parties being the domiciled in the Soviet Union. By Soviet law a divorce could be secured upon the registration of both parties of their desire to terminate the marriage, or upon the application of one of them to a court which had no discretion but to dissolve the union. The petitioner filed a bill for separation in England, and an issue was directed in the lower court to determine whether the parties had ever been husband and wife. The court held the marriage invalid, but on appeal it was held the …


Pleading-Counterclaim-Shipper's Counterclaim In Carrier's Action For Freight No Violation Of Interstate Commerce Act Dec 1930

Pleading-Counterclaim-Shipper's Counterclaim In Carrier's Action For Freight No Violation Of Interstate Commerce Act

Michigan Law Review

See note, supra, on Chicago and N. W. Ry. v. Lindell, 281 U. S. 14, 50 Sup. Ct. 2co, 74 L. ed. (Adv, Op. 272), at page 245 of this number.


Parent And Child-Legitimation-Statutory Construction Dec 1930

Parent And Child-Legitimation-Statutory Construction

Michigan Law Review

J W, a resident of Oklahoma, died leaving an estate consisting of property entirely within that state. Plaintiff, an illegitimate child of J W, claimed as heir. Plaintiff was born in Kansas where both her parents were then domiciled. J W while still a resident of Kansas recognized plaintiff as his daughter. Plaintiff claimed that by virtue of this recognition and a Kansas statute allowing illegitimates to inherit from the father whenever he had recognized them as his children, that she had been legitimated in Kansas and was therefore entitled to a share of J W's estate. Held, that …


Quasi-Contracts--Duress--Economic Pressure-Adequacy Of Legal Remedies Dec 1930

Quasi-Contracts--Duress--Economic Pressure-Adequacy Of Legal Remedies

Michigan Law Review

The plaintiff deposited funds with the defendant, a stock-broker, as security for his margin account. The defendant without authority sold short on the plaintiff's account a large number of shares of stock and threatened to use the plaintiff's deposits to cover the sale unless the plaintiff would authorize a purchase for that purpose. The plaintiff under protest authorized the defendant to purchase the stock, which in the meanwhile had increased in value. The plaintiff then brought suit to recover the difference between the sale and the re-purchase prices plus the defendant's commissions and transfer taxes. Held, on demurrer that …


Torts-Inducing Breach Of Contract Dec 1930

Torts-Inducing Breach Of Contract

Michigan Law Review

A contracted to build a dwelling for B, a negro. C, learning that A was building the structure for B, called on B and gave B to understand that the neighborhood would not permit B to use the building after completion. There were no direct threats, nor was there any violence, nor was B requested to cancel the contract. A sues C for inducing the breach which follows C's conversation with B. Held, A was entitled to damages even though C bore no malice toward A and did not intend to cause damage to A. Carson v. Stephens (La. …