Law Commons^™

Attorneys - Disbarment - Statute Of Limitations

Michigan Law Review

An attorney guilty of professional misconduct interposed as a defense the statute of limitations, which required that no proceeding to disbar or suspend an attorney be instituted except within two years after the commission of the offense or within one year after the discovery thereof. The court held the statute unconstitutional as an attempted projection of legislative power into the judicial department; the effect of the statute being to dictate to the court what evidence it might consider. In re Tracy, (Minn. 1936) 266 N. W. 88.

Conflict Of Laws -Enforceability Of Tax Judgment In Courts Of A Sister State - Full Faith And Credit

Michigan Law Review

A court of competent jurisdiction in Wisconsin gave the plaintiff a judgment against the defendants an Illinois corporation, for truces levied by Wisconsin upon income earned in that state. A federal district court in Illinois, relying on a theory that one state should not undertake to enforce the revenue laws of a sister state, dismissed an action on the judgment instituted by the plaintiff. The plaintiff appealed. Held, principles of comity and the "full faith and credit" clause of the Federal Constitution require that the action be entertained. Milwaukee County v. M. E. White Co., 296 U.S. 268, …

Constitutional Law - Due Process - Bank Receiving Deposits During Insolvency

Michigan Law Review

An Ohio statute provided that an officer of a bank who received a deposit therein "when he has knowledge that it is insolvent" shall be subject to criminal liability. The defendant, a director of a state bank, was indicted under the statute for receiving deposits therein knowing the bank to be insolvent. The court of appeals reversed a decision of the common pleas court dismissing the defendant. On appeal the defendant contended that the statute violated the due process clause of the Fourteenth Amendment of the Federal Constitution in that the use of the word "insolvent," without providing a definition …

Contracts - Indefiniteness - Effect Of Buyer's Right To Require Alternative Performance

Michigan Law Review

A buyer, who had agreed to take a certain number of gallons of oil within a viscosity range comprising seven weights, each weight being listed at a different price, repudiated his contract without having specified any of the seven types. In a suit by the seller to recover for breach of contract, held, as the indefiniteness of the agreement precluded any damages save those based on speculative, average, or other arbitrary price, it was not enforcible and plaintiff could not recover for defendant's refusal to accept oil. Wilhelm Lubrication Co. v. Brattrud, (Minn. 1936) 268 N. W. 634.1

Criminal Law And Procedure - Fraudulent Deprivation Of Possessory Lien As Larceny

Michigan Law Review

Defendant engaged a furrier to repair her fur coat. After the repairs were completed, she obtained possession of the coat on the pretense of trying it on and refused to return it or to pay for the work done. She was charged with grand larceny, the theory of the prosecution being that she feloniously deprived the furrier of his property (his repairmen's lien). Held, conviction affirmed. The court seemed to say that the value of the coat rather than the amount of the lien determined the degree of the larceny. State v. Cohen, (Minn. 1935) 263 N. W. …

Criminal Law And Procedure - Non-Unanimous Verdicts - Constitutionality

Michigan Law Review

An amendment to section 11, article 1 of the constitution of the state of Oregon permitted the concurrence of ten of the twelve jurors to control in criminal trials except in cases of murder in the first degree. It was claimed that this amendment discriminated against persons charged with second degree murder and in favor of those on trial for first degree murder, since in the latter case the jury could recommend life imprisonment which was the punishment prescribed in the former. The court held that there was no violation of the Fourteenth Amendment of the Federal Constitution. State v. …

Election Of Remedies - As Between Conversion And Replevin - Measure Of Recovery

Michigan Law Review

Through fraud, defendant received from plaintiff certain shares of stock together with other securities to secure a loan of $300,000 to the plaintiff. Defendant wrongfully hypothecated this stock. Plaintiff, after learning of the conversion, sued for the specific stock in replevin. During the course of the action he changed his demand to one in damages for conversion. The court held that plaintiff may not change the theory of his cause of action from replevin to conversion. Satterwhite v. Harriman Nat. Bank & Trust Co., (D. C. N. Y. 1935) 13 F. Supp. 493.

Eminent Domain - Slum Clearance And Low-Cost Housing Program As Public Use

Michigan Law Review

A New York statute set up a public corporation with power to investigate and study housing conditions in the city, and to plan and carry out projects for the clearance of slums and the providing of housing accommodations for persons of low income. The corporation sought to condemn certain property owned by the defendant, who resisted the proceeding on the ground that the taking was not for a public use and therefore violative of the Fourteenth Amendment and a similar provision in the state constitution. Held, that the taking was for a public benefit and that therefore the constitutional …

Interstate Commerce - Jurisdiction Of Interstate Commerce Commission - "Tacking" Of Intrastate Hauls

Michigan Law Review

The coal company shipped coal from its mines in Pennsylvania by means of its own private railway, river barges, and tugs to a point in Ohio where the coal was unloaded, washed, freed from impurities, and sorted into appropriate sizes. Thereafter it was delivered by the company to a common carrier in Ohio for transportation to points within the state to .fill orders often not received until after the coal left the mines. Held, the haul by the common carrier in Ohio is not subject to the jurisdiction of the Interstate Commerce Commission and is intrastate commerce which may …

Taxation - Exemption Of Federal Instrumentality From State Gasoline Tax

Michigan Law Review

An Alabama statute provided that "Every distributor, refiner, retail dealer or storer of gasoline . . . shall pay an excise tax . . . upon the selling, distributing, storing or withdrawing from storage in this State for any use, gasoline . . . ." The plaintiff, a private corporation, sold gasoline to the United States for use in performing governmental functions without reporting it for taxation. When the state demanded payment, the plaintiff brought this suit to restrain collection. Held (Justices Cardozo and Brandeis dissenting), the operation of the statute violates the constitutional principle safeguarding the federal government against …

Taxation - Exemptions - Municipally-Owned Property

Michigan Law Review

In settlement for collateral notes given to secure its deposits in a bank which became insolvent, a municipality had conveyed to it an office building, located in a county other than the one in which said municipality was situated. The city thereafter rented the offices to tenants operating private businesses. The county in which the building was located subjected it to an ad valorem tax. Contesting the right to its collection, the city failed to pay the assessed taxes, for a period of four years. Held, the property, although municipally-owned, not being held or used for any governmental or …

Taxation - Overvaluation As Deprivation Of Due Process

Michigan Law Review

From 1929 through 1933 the valuation placed by the North Dakota Board of Equalization upon the property of the Great Northern Railway within the state declined less than six per cent. Relying upon evidence as to the value of its property in North Dakota as well as the common knowledge that the decline in values had been many times six per cent during this period, the Railway claimed that it had been deprived of its property in contravention of the due process clause of the Fourteenth Amendment. Its contention was confined to the charge of overvaluation; discrimination, either in rates …

Revenue Financing Of Public Enterprises, E. H. Foley Jr.

Michigan Law Review

Courts have been slow to take judicial notice of the growing needs of local communities. Legislatures have restrained municipal corporations from engaging in business enterprises upon the assumption that the object was mere hope of gain, that the investment of municipal funds in such enterprises was simply a speculation, or that the effect was to divert municipal corporations from their legitimate ends and to poach upon the preserves of private enterprise. Novel municipal undertakings have been feared as an entering wedge of state socialism or governmental paternalism. Even when the instrumentality of private adventure was disposed to leave a need …

Corporations - Statutes Declaring Watered Stock Void - Effect Upon The Stockholder's Liability To Creditors

Michigan Law Review

Prior to the present era of "blue sky" laws providing for the careful scrutiny by the state of the issuance of stock, the evil of watered stock was sought to be curbed by constitutional and statutory provisions of a prohibitory and often penal nature. These statutes and constitutional provisions very generally take one of two forms.

The Colorado and the Arizona provisions are typical. In practical effect the two types of provisions are indistinguishable. The phrase "bona fide subscribers" in the Arizona form is construed to mean one who actually turns something of value over to the corporation in lieu …

Constitutional Law - Impairment Of Obligation Of Contracts Change In Statutory Regulations For Withdrawal And Payment Of Building And Loan Association Members

Michigan Law Review

Plaintiff became a member stockholder of the defendant building and loan association under a general Louisiana statute authorizing such corporations. This law provided for withdrawal of members, setting up a fund for payment to be made in order of notice of intent to withdraw. Plaintiff placed his name on the list, but before payment the statute in question was enacted and payment was refused. This statute abolished the liquidation fund and changed the order of withdrawal to a payment of 25 per cent of the claim at the head of the list, the claimant's name to be then placed at …

Constitutional Law - Race Segregation Ordinance - Effect Of Military Order Of Governor Issued For Same Purpose

Michigan Law Review

A "segregation ordinance" of Oklahoma City, prospective in nature, made it unlawful for any negro to occupy as a residence any house or building located in a block wherein a majority of the buildings used were occupied by white persons. The initial step in the segregation of races in the city occurred when the Governor issued a military order for the separation of the races, because it appeared that riot and bloodshed were imminent; such order to remain in effect until an ordinance was passed in lieu of the order. Held, the ordinance was an invalid exercise of the …

Insurance - Remainderman's Share In Proceeds Of Life Tenant's Policy

Michigan Law Review

Buildings insured by the life tenant for their full value were totally destroyed and the insurance money paid over to the life tenant. The remainderman brought suit under a statute requiring the giving of security for the protection of the remaindermen by those having limited interests in personal property. Held, the remainderman has no interest in the proceeds of the policy and cannot compel the life tenant to render security. In re Gorman's Estate, (Pa. 1936) 184 A. 86.

Interstate Commerce - Taxation Of Motor Vehicles In Interstate Transportation For Sale

Michigan Law Review

A New Mexico statute exacts a flat permit fee for the privilege of transporting motor vehicles, on their own wheels, over the highways of the state, for purpose of sale within or without the state. Held, this does not impose an unconstitutional burden on interstate commerce nor does it discriminate against a citizen of another state engaged in transporting automobiles on their own wheels, in processions or caravans, for sale outside of New Mexico. Morf v. Bingaman, (U.S. 1936) 56 S. Ct. 756.

Municipal Corporations - Liability To Riparian Owners For Pollution Of Stream

Michigan Law Review

A stream into which the plaintiff in error dumped its sewage flowed through the lands of defendant in error. Odors from the stream, deposits of foreign substances on the banks, and the pollution of the waters about the farm of the defendant in error constituted a nuisance. Held, the city is liable to one suffering from the nuisance, irrespective of whether it is exercising a governmental function in the installation of the sewer system. Oklahoma City v. Tyetenicz, 175 Okla. 228, 52 P. (2d) 849 (1935).

Public Utilities - Judicial Review Of The Rate Base

Michigan Law Review

The Secretary of Agriculture made an order fixing the rates chargeable by the appellant, the rate base being determined by the cost of reproduction new less depreciation. The district court held that, since by congressional act the findings of fact of the Secretary were made conclusive, the court could not make an independent determination of the value but was bound to take the Secretary's valuation if there was substantial evidence to support it. However, the court then went on to review the evidence before the Secretary and concluded that the appellant had failed to show that the valuation was "clearly …

Quasi-Contract As An Alternative Remedy For Inducing Breach Of Tort

Michigan Law Review

In an action for money had and received, plaintiff alleged that the International Railroad Company owed plaintiff $40,000 as compensation for services rendered under an existing and valid contract of employment; that with knowledge of this fact defendant corporation, representing that it, and not plaintiff, was entitled to this sum, fraudulently conspired with International Railway Company that this sum be paid defendant instead of plaintiff, and that said amount was paid defendant, resulting in unjust enrichment under circumstances in which the law implies a promise on defendant's part to pay said sum to plaintiff. In reversing a judgment sustaining a …

Taxation - Constitutionality Of Statute Permitting Rebate On Payment Of Delinquent Taxes

Michigan Law Review

Defendant county demurred to plaintiff's claim for taxes paid under protest, arguing that ,the statute upon which plaintiff relied, one giving taxpayers the right to pay off delinquent taxes without interest and with a five per cent reduction in principal, was unconstitutional. The demurrer was overruled and defendant appealed. Held, that while the court feels that the law is entirely valid, the county is not entitled to raise an objection to it. Vance Lumber Co. v. King County, 184 Wash. 402, 51 P. (2d) 623 (1935).

Waters And Watercourses - Riparian Rights In Streams Flowing Through Several States

Michigan Law Review

A special master appointed by the Court after the filing of a bill by the state of Washington praying an injunction against the state of Oregon found that inhabitants of Oregon had been diverting water from the Walla Walla River, a non-navigable stream, by means of a dam for over fifty years for use in irrigating their lands which would otherwise be arid and had been for a long time pumping some nine thousand acre feet of water per annum from wells bored on their lands. The state of Washington claimed this diversion materially injured an irrigation project known as …

Wills - Class Gift To Persons Named

Michigan Law Review

By the terms of his father's will, the plaintiff was made beneficiary of a trust fund which the testator directed "shall be and is in full of all claim . . . which he is to have out of my estate." Specific bequests were given to two of the testator's sons. The residue was devised and bequeathed "in equal parts to my following named children" (the seven brothers and sisters of the plaintiff being named as legatees). One son who was named both as a specific and residuary legatee predeceased the testator. The plaintiff contended that the bequest to that …

Constitutional Law-Validity Of State Statute Forbidding Sale Of Prison-Made Goods Manufactured In Other States-Validity Of Federal Statute Permitting State Control Of Goods In Interstate Commerce

Michigan Law Review

Defendant was prosecuted in an Ohio court for selling in original packages goods shipped to him from an Alabama prison in which they were manufactured. The prosecution was under an Ohio statute prohibiting sale on the open market of goods, wares, or merchandise manufactured or mined wholly or in part in any other state by convicts or prisoners except those on parole or probation. Other Ohio statutes impose a like prohibition on the sale of convict-made goods manufactured in Ohio. The federal Hawes-Cooper Act provides that all goods, wares, and merchandise manufactured, produced, or mined wholly or in part by …

Practical Results Of Federal Equity Rule 75 (B) As To Restatement Of Testimony In Narrative Form, Marion L. Severn

Michigan Law Review

During the twenty-four years since the adoption of the narrative form for records on appeal in the federal courts under Equity Rule 75 (b), there have been some printed comments and criticisms of the rule as well as informal and unrecorded discussion by the bench and bar. The more recent comments on the working out of the rule vary little from the prophecies made soon after its adoption. There is not much of value that can be added to the theoretical discussions of the rule either by its proponents or its opponents. But there remain certain highly important practical questions: …

Municipal Corporations-Power Of Congress To Pass Act For Readjustment Of Municipal Debts

Michigan Law Review

In 1934, Congress amended the National Bankruptcy Act so as to authorize any municipality or other political subdivision of any state to effect a readjustment of its debts by proceedings in courts of bankruptcy. A water district in Texas petitioned the United States District Court asking for a readjustment of its obligations. After the dismissal of the proceedings in the District Court, but before the reversal of the decision by the Court of Appeals, the state legislature of Texas passed an act empowering municipalities and other political subdivisions to proceed under the federal statute. Held, that the municipal debt …

Trade Marks - Extent Of User Essential To Right To Priority

Michigan Law Review

Two promoters conceived the idea of a corporation to manufacture beer, the beer to be labeled "Old South Brew." While the process of incorporation was proceeding the promoters arranged with the Eastern Beverage Corporation of New Jersey to make a beer labeled "Old South Brew," to be shipped, and which was shipped, only to customers of the promoters. The promoters then extensively advertised this product and the fact that the same beer was to be made by their own corporation. The corporation, known as the "Old South Brewing Co., Inc." was chartered, but to the date of trial had not …

Uniform Corporation Laws Through Interstate Compacts And Federal Legislation, Robert S. Stevens

Michigan Law Review

It is the purpose of the present article to suggest that another means of accomplishing the end exists in the possibility of an interstate compact for uniform corporate legislation, coupled with supplementary federal legislation appropriate to make the interstate compact effective.

Trusts-Restated And Rewritten, Harry W. Vanneman

Michigan Law Review

Two books were published during the past year which are of the greatest importance to those of the legal profession who are interested in the law of trusts. Professor Bogert's seven volumes appeared first, followed shortly by The Restatement of the Law of Trusts by the American Law Institute, of which Professor Scott, of the Harvard Law School, was the reporter. Professor Bogert, of the University of Chicago Law School, was a member of the Institute's Committee on Trusts. Since 1927, therefore, when the Institute began work on the Restatement of Trusts, Professor Bogert apparently has been working …