Law Commons^™

Process-Service By Publication In Creditors' Suits

Michigan Law Review

The plaintiff, a citizen of Missouri, recovered a judgment against the defendant, a citizen of New York, in the federal district court, S. D., New York. Execution was issued and returned unsatisfied, and a creditors' bill was brought to subject the surplus of a trust fund in New York, of which the defendant was the cestui, to the satisfaction of the judgment. In the meantime the defendant bad moved to New Jersey, and service of process was had upon her by publication. On a motion to vacate the order allowing service by publication, the court held that the order allowing …

Conflict Of Laws-Bills And Notes-Law Governing Vailidity Of Transfer Of Check By Indorsement

Michigan Law Review

The president of a New York corporation indorsed in blank in the corporate name a check payable to the corporation. He then indorsed the check personally and mailed it to the Banque De Bruxelles, a foreign corporation located in Belgium. The bank in Belgium received it for collection and forwarded it for collection to its correspondent in Washington, D. C. The proceeds were received by the bank in Belgium and credited to the personal account of the president of the New York corporation as directed by him. Later, he withdrew the amount from the bank for his own use. Assignees …

Taxation-Excise Measured By Income From Copyrights

Michigan Law Review

Plaintiff, a New York corporation, brought a bill to enjoin the Attorney-General of New York and others from collecting under a New York statute a tax levied "for the privilege of exercising its franchise in this state in a corporate or organized capacity," and measured by "income from any source," which had been interpreted to include income derived from copyrights, on the ground that the statute, as applied, infringed the federal Constitution. Held, three judges dissenting, that the tax was an excise tax levied for the privilege of doing business in a corporate capacity and that a constitutionally permissible …

Admiralty-Jurisdiction-Workmen's Compensation

Michigan Law Review

The question of what remedies should be available to maritime workers for injuries in the course of their employment has received much attention from the courts during the last fifteen years. This has resulted in some conflicts of the federal maritime jurisdiction with the jurisdiction of the states, and particularly' with the workmen's compensation acts enacted by them. The history of this situation was reviewed in 27 MICH. L. Rev. 191, December, 1928, in a note by G [errit] D [emmink]. In view of three decisions rendered last spring by the United States Supreme Court, it has seemed well to …

Libel And Slander-Words Actionable Per Se

Michigan Law Review

Plaintiff brought a slander action, alleging that the defendant had said "You dirty crook, you are the biggest crook in Bedford Avenue." Apparently the declaration alleged no special damages, and contained no innuendo setting forth circumstances which would enlarge the meaning of the statement complained of. On defendant's motion for a dismissal, on the ground that the complaint did not state a cause of action, held, that the words were actionable per se. Weiner v. Leviton (N. Y. App. Div. 1930) 244 N. Y. S. 176.

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 …

Torts-Negligent Misrepresentation-Duty Arising From Contract To Persons Not Parties

Michigan Law Review

The defendants, accountants, examined the books of the Stern Co., knowing that their balance sheet and 32 certified copies would be exhibited as a basis for future credit, but not knowing of the plaintiff particularly. Through negligence they failed to discover and report insolvency. Relying upon the report showing a solvent concern plaintiff extended credit to the Stem Co. He sued for his loss in two counts, negligence and fraud. Held, defendants had no duty to plaintiff to exercise due care, so he can not recover for negligence in the examination. But defendants might be liable for fraud as …

Trusts - Cancellation - Beneficiaries As Necessary Parties

Michigan Law Review

The plaintiff deeded property to the defendants in trust, for herself for life and on her death to certain named persons. Plaintiff sued the defendants alone for revocation on the ground of fraud and duress. Held, the issue of fraud could not be tried in the absence of the living cestuis. McKnight v. Bank of N. Y. & Trust Co., 254 N. Y. 417, 173 N.E. 568.

Arbitration And Award-Effectof Foreign Arbitration Statute

Michigan Law Review

Plaintiff contracted to furnish and defendant to exhibit a number of motion pictures. The contract included an arbitration agreement in which the parties agreed to submit all disputes arising under the contract to a specified board of arbitration and to abide by its award. The arbitration agreement was to be governed by the laws of New York, by which it would have been valid, irrevocable and specifically enforceable. Defendant breached the contract, refused to submit the dispute to arbitration, and failed to comply with the award when plaintiff did so. Plaintiff then brought suit in Ohio to enforce the award. …

Marriage--Common-Law Marriage After The Removal Of Impediments Existing At The Time Of The Ceremonial Marriage

Michigan Law Review

An action was instituted for the removal of respondent as administrator of the estate of X, on the ground that the respondent was not the legal husband of the intestate. Both respondent and deceased had living spouses at the time they entered into a ceremonial marriage in 1898, but whether or not they knew of the impediments to the validity of their marriage did not appear on the record. In 1924, the last obstacle to their marriage was removed by the death of respondent's first wife. The parties cohabited for thirty years and continued so to do subsequent to. the …

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 …

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 …

Master And Servant-Tests Of Independent Contract

Michigan Law Review

The claimant was employed by a dairy company to sell and deliver milk along a defined route, his "payment being in the form of a commission on each bottle sold. He was required to make daily payments in cash for milk and cream sold, but had the privilege of returning unsold milk or cream at the end of each day. Horses and vehicles were hired from the company at a stated price per day. Claimant was injured by a fall from his wagon while making deliveries. The State Industrial Board held him to be a servant and awarded him workmen's …

Deeds-Side Of Lake As Boundary-Presumption That Grantee Takes To Center

Michigan Law Review

ln a conveyance of land adjoining a lake, the description read in part, "thence running northerly * * * to the Rockland Lake thence westwardly along the south side of the Rockland Lake." Held, that the grantee took to the center of the lake. White v. Knickerbocker Ice Co. et al. (N. Y. 1930) 172 N.E. 452.

Crimes--Acts Done In Commision Of Felony-Common Design

Michigan Law Review

A group of rioting convicts freed the defendants from their cells in Auburn Prison. The defendants joined in a demand on the prison authorities for liberty to leave the prison safely, and in a threat, in case of resistance to their efforts and demands, to kill the warden and seven guards, who had been captured and disarmed and were held as hostages. The prison authorities adopted a ruse. They permitted the convicts to go into the guard room with the captured personnel, where gas bombs were then discharged. Six to a score of shots were fired, all coming, according to …

Libel And Slander-Fair Comment

Michigan Law Review

The plaintiff sued the defendant publisher for an alleged malicious attack on him as the coach of the local high school football team. The newspaper article in question, after reciting several defeats suffered by the local aggregation, declared that the players were not well versed in the fundamentals of the game, that the system of plays furnished them was exceedingly antiquated, and that their latent ability had not been brought out by proper coaching. Held, judgment of non-suit reversed, as the plaintiff can recover on proof of express malice. Hoeppner v. Dunkirk Printing Co. (N. Y. 1930) 172 N.E. …

Jurisdiction For The Purpose Of Imposing Inheritance Taxes, David R. Mason

Michigan Law Review

For nearly half a century so-called inheritance tax laws of the states of the United States have been predicated upon two distinct theories of jurisdiction, many states embodying both theories into their statutes. Recent decisions rendered by the Supreme Court of the United States, however, challenge the constitutionality of such a scheme and indicate the expediency of a review of the extent of state jurisdiction for the purpose of imposing such taxes.

Insurance-Misrepresentations-Insertion Of False Answers By Medical Examiner

Michigan Law Review

If an applicant for life insurance, in answering the many questions put to him by the company's medical representative, tells the truth, but the examiner, in recording the answers, distorts them without the knowledge of the insured, may the beneficiary or the personal representative of the insured show this distortion by parol, and collect on the policy in spite of the presence of false written answers in the application? The New York court of appeals, in the very recent case, Minsker v. John Hancock Mutual Life Insurance Co., 254 N. Y. 333, 173 N.E. 4, answers this question in …

Covenants--Mistake Of Law--Warranty Against

Michigan Law Review

The Municipal Metallic Bed Mfg. Co. leased a building from Dobbs in reliance on his representation that it was not illegal to manufacture in said building, and the lease contained a warranty to that effect, and a promise to indemnify the Bed Co. for any loss sustained in case it should prove illegal to use the building for the purpose intended. It later proved that due to the New York building code the building could not be used for manufacturing, and the Bed. Co. sued for the loss it sustained as a result. Held, plaintiff could recover on the …

Mortgages-Foreclosure-Default In Interest

Michigan Law Review

Plaintiff was a mortgagee of certain real property. A clause in the mortgage provided that the whole amount should become due after default for twenty days in the payment of any installment of interest. Through an arithmetical error of its clerk, the defendant corporation, owner of the equity of redemption, paid $401.87 less than the amount of interest due on one installment. The total interest due was $4621.56. The clerk discovered the error and notified the mortgagee that it would be corrected as soon as the president of the corporation, who alone was authorized to sign checks, returned from Europe. …

Sales-Conditional Sales-Resale By Seller

Michigan Law Review

Plaintiff bought fourteen cabs from defendant on a conditional sate contract, and after paying more than fifty per cent of the purchase price defaulted in his payments. Defendant then retook possession of the cabs and undertook to foreclose plaintiff's interest therein by a resale at public auction, as required by the Uniform Conditional Sales Act, in force in the jurisdiction. The specific requirements of the Act relative to notice of the sale were complied with, but the notices did not state where the cabs were being kept, and at the time of the sale they were in a garage miles …

Limitation Of Actions-Effect Of Fraudulent Concealment

Michigan Law Review

Plaintiff sued in equity for a money judgment on defendant's promissory notes. Defendant had fraudulently represented that her husband's estate was liable on these notes, inducing plaintiff to sue the estate and thus delay for more than six years in starting suit against defendant. Plaintiff had sued defendant at law on the notes, defendant had pleaded the statute of limitations, and plaintiff had discontinued. Held, that plaintiff could recover a money judgment in equity, since the remedy at law was barred by the statute of limitations. Dodds v. McColgan (N. Y. App. Div., 1930) 241 N. Y. S. 584.

Trusts-Apportionment Of Extraordinary Dividend From Sale Of Property By Realty Company Between Life Tenant And Remainderman

Michigan Law Review

After death of the testator, leaving his wife shares in a realty company as part of the residue of his estate in trust to receive the rents, profits, and income of the same for her natural life, the company sold the greater portion of its property and declared a cash dividend of 100 per cent. Held, that it belonged to the remainderman and not the life beneficiary. In re Jackson's Will, 239 N. Y. S. 362.

Trusts-Degree Of Duty To Which A Trust Is Bound

Michigan Law Review

In an accounting proceeding certain objectors sought to surcharge the Fulton Trust Company of New York, as testamentary trustee, for loss in the trust fund due to the retention of securities taken over from the executors at the time the trust was set up, seven years previous to the accounting. The securities, consisting of stocks in sugar companies, had greatly decreased in value. The trustee was not charged with having acted in bad faith, but with negligence in having retained the securities, although authorized to do so by the will. Held, that much more was expected from a trust …

Corporations-Basis For Preemptive Rights

Michigan Law Review

Defendant corporation's authorized capital stock consisted of 800 shares of common stock, 76 shares of which remained unissued. Over the objection of the plaintiff, the directors of the corporation authorized the issue of 50 shares of the 76 to a salesman in satisfaction of a debt due him from the corporation, the remaining 26 shares to one of the directors for cash with which to meet corporate indebtedness. No contest for corporate control was afoot. No opportunity was given to the shareholders generally to purchase such shares. Later the faction of the individual defendants to whom said 26 shares had …

Garnishment-Foreign-Double Liability

Michigan Law Review

Plaintiff, a resident of New York, obtained a judgment in Connecticut against El Saieh, a resident of Haiti, the court in that action obtaining jurisdiction by garnishment of a debt owed El Saieh by defendant, a Connecticut corporation, which was served with garnishment process, and admitted an obligation to El Saieh based on a policy of fire insurance issued through its agency in Haiti on a stock of goods located there. Plaintiff then sought to enforce the judgment against the defendant garnishee, which set up a defense of double liability, contending that under the laws of Haiti it was absolutely …

Liability Of Landowner To Pedestrians-Negligence-Independent Contractor

Michigan Law Review

Two recent cases present interesting situations involving the liability of a landowner for injuries to pedestrians occasioned by falling street signs.

A Rational Theory For Joinder Of Causes Of Action And Defences, And For The Use Of Counterclaims, William Wirt Blume

Michigan Law Review

In discussing, first, the joinder of actions it will be convenient to consider three groups or classes of cases:

Class I : Where one plaintiff (or joint plaintiffs) unites in a single proceeding two or more causes of action against one defendant (or joint defendants).

Class 2: "Where two or more plaintiffs, each having a cause of action against the same party (or parties), unite their causes of action in one proceeding.

Class 3: Where one plaintiff (or joint plaintiffs) having several causes of action, each against a different party, unites them in one proceeding.

In considering each group or …

Constitutional Law-Regulation Of Resale Of Tickets Of Admission To Places Of Entertainment

Michigan Law Review

An addition has been made to a series of cases indicating that the United States Supreme Court is turning away from a tendency to sustain state legislation, especially where the factual basis constituting the inducement of the enactment involves debatable factors. in a five to four decision that gives the unscrupulous ticket scalpers free rein to shear all the fleece from the theatre going lambs of greater New York, the Supreme Court has held to be in violation of the Fourteenth-Amendment a New York statute limiting the resale price of tickets of admission to places of entertainment to fifty cents …

Crimes-Improper Conduct Of Prosecuting Attorneys

Michigan Law Review

In a recent New York case, People v. Klvana (N'. Y. 1926) 150 N. E. 523, Hiscock, C. J. in commenting on the evidence was induced to remark, "We are aided in this analysis by the perfectly fair attitude of the district attorney who with a commendable conception of his duties presents this case to us neither attempting to exaggerate its strong points nor trying to obscure its weaknesses." That sort of remark is refreshing. It gives renewed faith in the honesty of the administration of our criminal laws and shows that the fundamental theory that it is as much …