Law Commons^™

Constitutional Law-Eminent Domain-Elements Of Fair Value, Hugh B. Muir

Michigan Law Review

Respondent bought the tug MacArthur from the Coast Guard in March, 1942. Exclusive of his own labor, his outlay for purchase and repair of the tug totaled $8,574.78. In October, 1942, the War Shipping Administration, acting under the Merchant Marine Act of 1936, requisitioned the tug and awarded compensation of $9,000. Respondent contested the award, and the Court of Claims found that the fair market value at the time of taking was $15,500. This determination was made without deduction for enhancement of value due to the government's need of vessels, or previous taking of vessels of similar type. The Court …

Constitutional Law-Privilege Against Self-Incrimination-Waiver Under Compulsory Testimony Act, John A. Nordberg

Michigan Law Review

Smith, sole owner and officer of a clothing corporation, appeared before an OPA examiner in response to a subpoena to produce the corporate books. Under the Emergency Price Control Act these records were required to be kept and preserved. Smith said that the records were "destroyed, lost, or misplaced.'' Then, on claiming privilege against self-incrimination, he testified as to activities of the corporation and contents of the absent records. During the interrogation Smith made a long statement in partial summation of his testimony. When he finished, he was asked, ''This is a voluntary statement. You do not claim immunity with …

Corporations--By-Laws--Restrictions On Transfer Of Bank Stock, Hugh B. Muir

Michigan Law Review

Plaintiff received thirty shares of bank stock by bequest. Before she presented the shares to the bank for transfer, the stockholders, by a majority vote (plaintiff dissenting), amended the by-laws so as to limit to certain classes the persons to whom the bank stock could be transferred, whether by transfer inter vivos, will, or descent. A mandamus proceeding was initiated against the bank to compel a transfer of the shares free of the restrictions. On defendants' appeal from a ruling denying a motion to quash an alternative writ, held, affirmed. The restrictions sought to be imposed were not authorized …

Accrual Problems In Tax Accounting, Alfred E. Holland

Michigan Law Review

Quite frequently at the end of a taxable year some uncertainty qualifies the eventual payment or receipt of an obligation. An obligor may refuse to pay the debt for any number of reasons. There may be disagreement as to the amount which is due; the obligation may not appear collectible; or there may be some other contingency which makes eventual receipt or payment appear uncertain at the time. This uncertainty presents a problem to the taxpayer when he closes his books at the end of the year. Should such an uncertain item be entered on the books as income for …

Contributory Infringement And The Combination Patent, Samuel Ewer Eastman

Michigan Law Review

The right of action for contributory infringement of a patent was forged by judicial legislation, and, as limited and subjected to opposing rules of law, has been tempered by that same process. The history is exemplary of the control over society exercisable by the courts according to their own individual economic outlook.

In tracing this history, buying agreements, price-fixing, agreements not to deal in the goods of a competitor, conspiracies to restrain trade through licensing, and other business arrangements subject to scrutiny under the anti-trust laws will be dealt with only incidentally. It is not possible to deal only with …

The Law School 1949-50, E. Blythe Stason

Michigan Law Review

Notwithstanding the fact that the peak of postwar veterans' enrollment is supposed to have subsided, the 1949-50 enrollment in the Law School remains substantially the same as it has been during the past several years. Last year we recorded a total of 1057 students; this year the figure is 1030. The beginning class of 409 students, together with 273 second-year and 328 third-year students, to which must be added 20 graduate students, all add up to the total, 1030. Thirty-three of the total are women, the largest women's enrollment ever recorded in the School. The group of 20 graduate students …

Corporations-Applicability Of General Corporate Dissolution Procedure To Associations Organized Under Building And Loan Act, Howard W. Haftel S.Ed.

Michigan Law Review

Building and loan associations are organizations designed for the general purpose of accumulating by gradual payments of their members a fund to be invested primarily in loans on real estate. At present these organizations almost invariably are corporations for profit. Because of their economic importance these associations have long been regarded as affected with a public interest and therefore subject to a higher degree of regulation than would be sustained in the case of ordinary profit-making corporations. Special legislation is necessary because building and loan associations differ widely from other corporations in financial structure and operation.

Corporations-General Effect Of Statutes Prohibiting Corporate Loans To Directors, Officers And Stockholders, Paul W. Eaton, Jr.

Michigan Law Review

Over the years a number of states have felt that loans by private corporations to their directors and stockholders should be regulated to protect the interests of creditors and, in many cases, stockholders. At present, twenty-two states have statutes which either absolutely prevent such loans or else limit their scope, and this number will probably increase. A typical statute may be found in New Jersey: "No corporation shall loan money to a stockholder or officer thereof. If any such loan be made the officers who make it, or assent thereto, shall be jointly and severally liable, to the extent of …

Libel And Slander-Testamentary Libel, Charles Hansen S.Ed.

Michigan Law Review

Although the right to recover for injury from admittedly defamatory matter would seem to be clear, the law imposes a series of obstacles when the offending statements are embodied in a will. Of the few cases which have arisen in this area, a recent decision, Carver v. Morrow, serves to illustrate the general problem. In this case, plaintiff claimed that portions of testatrix' will defamed him. After the will was probated, he brought an action against testatrix' executors on the ground that publication had been effected by probate, and that therefore a cause of action in libel existed against …

Constitutional Law-Equal Protection-Foreign Corporations-Discriminatory Intangibles Tax, Robert P. Griffin S.Ed.

Michigan Law Review

An Ohio statute required foreign corporations doing business within the state to pay an ad valorem tax on accounts receivable which arose through outstate sales of goods shipped from warehouses within the state, even though the sales were consummated by an agent maintaining his office without the state. Such intangibles were declared by the Ohio statutory formula to have a situs within the state. At the same time, the accounts receivable of Ohio residents and domestic corporations which were derived from outstate sales by agents having their offices without the state were exempt, even though the goods were shipped from …

Courts-Martial--Jurisdiction Over Person Discharged And Re-Enlisted For Offense Committed During Prior Enlistment, J. D. Mcleod S.Ed.

Michigan Law Review

Petitioner, a chief petty officer in the Navy was honorably discharged on March 26, 1946, and re-enlisted on the following day. In 1947, he was tried by court-martial and convicted of cruelty, during his prior period-of service, to persons subject to his orders. The District Court sustained his writ of habeas corpus on the ground that the court-martial had no jurisdiction; the Circuit Court of Appeals reversed. On certiorari to the Supreme Court of the United States, held, the court-martial had no jurisdiction to try petitioner for an offense committed prior to his discharge and re-enlistment. United. States ex …

Future Interests-Rule Against Perpetuities-Application To Duration Of Private Trusts, R. L. Storms

Michigan Law Review

Testator devised the locus to his daughter, V, in fee. Thereafter he executed a codicil whereby the property passed to his son-in-law, in trust, to take possession of the real estate and hold it in trust for V during her life, and "in the event of the death of my daughter . . . rent the same . . . and the said rents so received . . . he shall use for the support, sustenance, education, and benefit of the children of my daughter . . . surviving her." Held: the trust the testator attempted to create …

International Law-Accidents In International Air Transportation-Limitation Of Liability, William C. Gordon S.Ed.

Michigan Law Review

Plaintiff, known professionally as Jane Froman, sought damages of one million dollars for injuries received when defendant's transatlantic plane crashed at Lisbon, Portugal. Before the flight, defendant prepared tickets for plaintiff and other passengers scheduled to entertain troops overseas and delivered them to a USO Camp Shows' employee in charge of arranging transportation for the group. Plaintiff had not expressly authorized the USO employee to receive the ticket in her behalf. She was unaware of the plane's exact destination. Held, a ticket invoking the liability limitations of the Warsaw Convention was delivered as a matter of law. Ross v. …

Taxation--Income Tax--Family Partnerships--Application Of The Tower-Lusthaus Doctrine, Earl R. Boonstra S.Ed.

Michigan Law Review

Respondent and his four sons formed a partnership in 1939. The sons contributed cattle and property purchased from respondent who accepted their notes in return. Subsequently, part of the notes were forgiven and part paid from shares of the firm proceeds. A firm bank account was opened on which all members could draw. It was planned that all the sons would render substantial services to the partnership. However, the plan was disrupted when the two eldest were called to military duty, and the two minor sons continued their education. A partnership return was filed for 1940. The Commissioner determined a …

Torts-Assumption Of Risk-Flying Pucks And The Ice Hockey Spectator, James F. Gordy S.Ed.

Michigan Law Review

Plaintiff and her husband attended an ice hockey game being sponsored by the defendant. Both testified that they knew nothing about the game. They asked for the ''best seats in the house" and were seated in the front row of an unprotected section, immediately adjacent to the ice and behind a low wooden wall. During the progress of the game, plaintiff was struck and injured by a puck driven from the ice. Defendant had furnished screened areas, which were unfilled at the time; he had prominently displayed many large placards warning of the danger of flying pucks and advising of …

Torts-Family Relationship-Child's Right To Recover For Enticement Of Parent From Home, William H. Lowery

Michigan Law Review

Plaintiff, a six year old girl, sued to recover damages alleged to have been sustained as a result of defendant's enticing her mother from the family home. Plaintiff contended that as a child and member of the family she had a legally protected right to maintenance of the family relationship. Defendant answered that no tort had been committed, since no right in the plaintiff was recognized at common law and that to recognize such a right would amount to judicial legislation. From a judgment in favor of plaintiff, defendant appealed. Held, affirmed. Allowing a child a right of action …

Trusts-Addition To Corpus By Will-Nature Of Bequest, Robert H. Frick

Michigan Law Review

Testator created an amendable inter vivos trust which he amended in 1938, 1940, and 1942. By a codicil to his will, executed in 1945, he left his residuary estate to the trustees of the inter vivos trust to be held according to the terms of that trust as amended. On certification from the probate court, held, the bequest to the trustees was valid, and it was not necessary for the trustees to give bond and account to the probate court as required of trustees of testamentary trusts by statute. In re York's Estate, (N. H. 1949) 65 A. …

Trusts-Power To Revoke Through Unrestricted Power To Amend, Alan P. Goldstein S.Ed.

Michigan Law Review

Plaintiff and defendant were the settlors and trustees of a twenty year trust created in 1945. Their wives were the beneficiaries. The settlors retained the unrestricted power to amend the trust, but reserved no power to revoke. In October, 1945 the trust was amended, giving to either trustee the power to terminate the trust at any time, upon notice to the other trustee. In 1947, plaintiff gave notice of revocation to the defendant, and when this notice was ignored, plaintiff petitioned for a decree of termination. A demurrer was sustained, and plaintiff appealed. Held, reversed. ''If the power to …

Wills-An Exception To The Pennsylvania Mortmain Statute, Robert H. Frick

Michigan Law Review

Testatrix and her husband entered into an agreement that the survivor should devise property owned by them as tenants by the entireties to charities of the Catholic Church. Ten years later, testatrix, who had survived her husband, executed a will in accordance with the agreement, and died within thirty days thereafter. The lower court held that the bequest was not invalid under the Pennsylvania statute voiding religious or charitable bequests made within thirty days of death. On appeal, held, affirmed. Where a valid contract to make a will antedates the testator's death by more than the statutory period, the …

Busch: Law And Tactics In Jury Trials, Edson R. Sunderland

Michigan Law Review

A Review of LAW AND TACTICS IN JURY TRIALS. By Francis X. Busch.

Future Interests-Creation Of A Power By Exercise Of General Testamentary Power Held Valid, William R. Hewitt S.Ed.

Michigan Law Review

H in his will created a trust which provided for a life estate for his wife W. The trustee was directed to distribute the corpus of this trust after W's death "to such person or persons as she [W] may limit, nominate, and appoint by her last will and testament." At her death, W's will provided that part of the property over which she had a power of appointment was to continue in trust for S for life, with the power in S to dispose of the corpus absolutely by her last will. S, …

Divorce-Separation For Statutory Period As A Ground Of Divorce Regardless Of Fault, William R. Hewitt S.Ed.

Michigan Law Review

H sued W for a divorce on the statutory grounds that the parties had lived apart without cohabitation for ten years. The facts showed that the separation was caused by the willful abandonment of W by H and that H had lived in adultery after the separation and had not contributed to W's support since the separation. The trial court denied the divorce. On appeal, held, reversed. Where H and W have lived apart for the statutory period without cohabitation, H was entitled to the divorce regardless of the cause of the original separation and regardless of his …

Corporations-Shareholders' Derivative Suits-When Demand On Shareholders Is A Prerequisite To Maintenance Of Suit, Thomas L. Waterbury S.Ed.

Michigan Law Review

A shareholder's derivative suit is an equity proceeding instituted by a shareholder on behalf of himself and all other shareholders to assert corporate rights. Both the corporation and the parties allegedly liable to the corporation are necessary parties. The question to be considered in this comment is, when must the plaintiff shareholder show that he sought redress for the corporation through collective action of the shareholders and failed to secure it? As a preliminary matter, we may ask what sort of collective action the shareholders are expected to take. A few authorities suggest that the shareholders, as a body, bring …

Municipal Tort Liability, Allan F. Smith

Michigan Law Review

Municipal government in the United States is big business. In 1946, the 397 cities having a population of 25,000 or more spent a total of nearly 3 billion dollars for general governmental expenditures. In 1947 the total increased by 17 per cent to $3,477,000,000. Of that amount, 2½ billion were actual operational expenses for such activities as public safety, public health, sanitation, hospitals, local street and highway maintenance, and schools. Since the figures do not include the amounts expended in connection with municipal water works or municipal street railways, they lend weight to the assertion that our municipal governments are …

Insurance-Liability Of Insurer For Judgment In Excess Of Policy Limits, Clinton R. Ashford S.Ed.

Michigan Law Review

A liability insurer has issued a policy, reserving the sole right to effect a settlement, and refuses to settle, within the limits of the policy, a claim against the insured. A judgment in excess of the policy limit is then recovered against the insured. These circumstances present the question whether the insurer may be liable to the insured for the amount of the judgment in excess of the policy limit.

This comment will be limited to consideration of cases involving only the above facts, and no attempt will be made to consider the liability of the insurer for failing to …

Municipal Corporations-Zoning-Abrogation Of Private Restrictive Covenants By Zoning Regulations, Robert Dilts

Michigan Law Review

A recent New Jersey decision raises a question of current importance in view of the acute housing shortages in many metropolitan areas. Can a municipality, acting under its power to establish zoning regulations, authorize the construction of multiple-family dwellings in a particular area and simultaneously abrogate private covenants which restrict the area to single-family dwellings?

Bankruptcy-Corporate Reorganization-Power Of Court To Order Interim Payments While Petition Is Pending Under Chapter X Of Bankruptcy Act, William F. Snyder S.Ed.

Michigan Law Review

A petition for reorganization was filed, pursuant to Chapter X of the Chandler Act, October 3, 1947, which was adjudged on the same day to be in good faith and within the terms of the act. The corporation was clearly solvent, in the sense that its assets exceeded its liabilities, but needed financial adjustment to meet the principal on outstanding income notes due the following June. Thereafter, and before a plan was approved, the court entered an order directing the trustee of the debtor to pay 6% to the holders of the first mortgage bonds as an interim distribution to …

Place Of Trial Of Civil Cases, William Wirt Blume

Michigan Law Review

Places involved in a study of place of trial may be classified in various ways. The most general classification is: (1) Places within one sovereignty, (2) Places in different sovereignties. Where there is choice of place within one sovereignty, the only rational basis for making the choice is convenience-convenience of the parties, jurors, witnesses, and of the court itself. The same is true when the choice is between courts of different sovereignties, but without cooperation between the sovereignties rational choice may not be possible. The purpose of this discussion is to compare choice of place in England before 1800 with …

Administrative Terminology And The Administrative Procedure Act, Bernard Schwartz

Michigan Law Review

The confusion of terminology in our administrative law is a natural result of the manner in which that branch of law has developed. "The use of terms in administrative law exemplifies its most characteristic element-that it did not spring from a single source but has its roots in many places." The administrative process has not evolved according to a fixed plan; "thus far our Administrative Law has largely 'growed' like Topsy." With the haphazard habit characteristic of our political life, individual administrative agencies have been created as and when the need for them arose, without any logical system. The form …

Appeal And Error-Eisler's Flight And The Case And Controversy Question, Albert B. Perlin, Jr. S.Ed.

Michigan Law Review

The United States Supreme Court granted certiorari to review a federal court conviction on a charge of contempt of Congress. Pending determination of the appeal, appellant was released on bail and, after argument on the merits but before a decision had been rendered, he wrongfully fled the country. Subsequently the Attorney General notified the Court that appellant had been apprehended in England at the request of the Secretary of State and that a court of competent jurisdiction there found that appellant was not guilty of an extraditable offense under English law. The Court of its own motion then considered the …