Law Commons^™

Fraudulent Conveyances - Contingent Creditors - Bank Stockholders' Double Liability, Charles V. Beck Jr.

Michigan Law Review

A holder of bank stock conveyed real estate to her daughter in consideration of love and affection, leaving the grantor with no other assets than the bank stock. At the time, the bank stock had a market value of eleven dollars a share, and the bank was advertising for depositors; there was nothing in the record to indicate insolvency. About two years later the bank closed, and the superintendent of banks assessed the stockholders the amount of their statutory double liability. When the transfer was discovered the superintendent brought action to set aside the conveyance as fraudulent to the creditors …

Fraudulent Conveyances - Right Of Creditor Whose Cause Of Action Accrued After The Debtor's Voluntary Conveyance, Reed T. Phalan

Michigan Law Review

On the morning following the accident in which plaintiff's husband was struck and fatally injured by an auto owned and driven by defendant John Manning, the latter conveyed to his sister, Anna, his undivided one-half interest in certain realty, thereby making himself insolvent. About two and one-half weeks later, plaintiff's husband died as a result of the accident, and plaintiff brought suit on behalf of herself and her daughter to recover damages for the wrongful death of her husband. Plaintiff recovered judgment, and then filed the present action to set aside the conveyance. The court so decreed, and defendants John …

Labor Law - Back Pay - Requirement Of Deduction For Reimbursement Of Governmental Relief Agencies, Rex B. Martin

Michigan Law Review

Having found that the petitioner, by discharging employees for union activities, had engaged in an unfair labor practice, the National Labor Relations Board ordered the employees' reinstatement with back pay, less monies received during the period of discharge for work performed upon federal, state, county, municipal or other work-relief projects, and the payment of this amount received to the appropriate fiscal agencies of the government or governments which. supplied the funds for the work-relief projects. The Circuit Court of Appeals for the Third Circuit directed enforcement of the board's order. On petition for a writ of certiorari to that court, …

Landlord And Tenant - Necessity For Consideration For Lease, James A. Lee

Michigan Law Review

In an action to cancel a five-year lease, it appeared that the lessee had agreed to pay as rent an amount equal to one cent a gallon on each gallon of gasoline delivered, by it, on the leased premises. Held, that the lease was valid, as it created a bilateral contract supported by consideration on both sides, since according to the court's construction of the lease the lessee had impliedly promised to use the premises as an automobile filling and service station for the stipulated period and so would necessarily be required to deliver gasoline there. Jackson v. Pepper …

Constitutional Interpretation And Judicial Self-Restraint, Vincent M. Barnett Jr.

Michigan Law Review

The newly reconstituted Supreme Court of the United States has become the center of an earnest controversy with respect to the true role of the Court in constitutional interpretation. The general controversy is, of course, far from new. What makes it of more than ordinary significance is that the Court itself is revealing a tendency substantially to alter the extent, if not the nature, of judicial review. This tendency has not yet become clearly dominant, but it is apparent enough to shake the implicit faith in the Court of many of those to whom, before 1937, any criticism of the …

Railroads - Reorganization - Validity Of Conditioning Approval Of A Consolidation By Reference To Proper Treatment Of Employees, Kenneth J. Nordstrom

Michigan Law Review

A railroad made application to the Interstate Commerce Commission to obtain authorization to lease the lines of another railroad. The relevant federal statute provided that the commission should authorize consolidations and leases subject to such terms and conditions as it should find just and reasonable and as would promote the public interest. Accordingly, the commission conditioned approval of the lease by requiring that employees dismissed as a result of the lease be paid monthly allowances for fixed periods, or until securing re-employment; that those not dismissed be protected against any decrease in wages for five years, and reimbursed for expenses …

Negligence - Application Of Res Ipsa Loquitur Doctrine, Edmond F. De Vine

Michigan Law Review

Plaintiff was passing under defendant's elevated railway structure when a small particle of steel coming therefrom dropped into his eye. In his suit for damages plaintiff relied on the application of the doctrine of res ipsa loquitur to make out a prima facie case for him. Held, the rule of res ipsa loquitur cannot apply to help plaintiff on such facts. Riles v. Murray, (N. Y. Cty. Ct. 1939) 12 N. Y. S. (2d) 648.

Searches And Seizures - Constitutionality Of Statute Providing For Issuance Of Search Warrant On Affidavit On Information And Belief, William C. Wetherbee

Michigan Law Review

Plaintiff demanded a writ of prohibition against the defendant, a justice of the peace, to prevent his proceeding to determine ownership of trademarked milk bottles seized from plaintiff's milk truck under a search warrant. A statute required the issuance of a search warrant when any person made affidavit that he had reason to believe and did believe that trademarked receptacles were being wrongfully held. Held, writ of prohibition granted since the statute was unconstitutional in requiring the issuance of a search warrant without a showing of facts constituting probable cause, and in allowing the affiant instead of the judicial …

Rescission - Constructive Trusts - Tracing Misappropriated Funds, Eugene T. Kinder

Michigan Law Review

Defendant, president of plaintiff corporation, misappropriated over $1,000,000 in corporate funds, investing $79,000 thereof in government bonds. With the proceeds from these bonds, defendant set up two corporations, all the capital stock of which was owned by defendant's son and was purchased with plaintiff's money. One Greenslade was hired by defendant, and paid with a part of the misappropriated funds, to experiment with locomotive staybolt testing devices. As a result of the experimentation, Greenslade invented and patented several devices, transferring ownership thereof to one of the two corporations. In a prior action, brought without knowledge of the disposition of the …

Torts - Assumed Risk In Bleachers Of Baseball Park Where There Is No Choice Of Protected Seats, Jerome J. Dick

Michigan Law Review

Plaintiff sued for injuries sustained when struck by a foul ball at a baseball game while seated in the unprotected bleachers of the municipal baseball park. Held, the fact that there was no choice of protected seats in the ball park would not justify the recovery against the defendant, for the plaintiff, while seated in these unprotected bleachers, assumed this risk which was reasonably incidental to the game of baseball. Adonnino v. Village of Mount Morris, 171 Misc. 383, 12 N. Y. S. (2d) 658 (1939).

The Present Status Of The Sherman Act, Robert W. Harbeson

Michigan Law Review

Two circumstances may be advanced by way of justification for the present addition to the voluminous literature dealing with the Sherman Anti-Trust Act. First, the Supreme Court has in recent months handed down two decisions involving the application of the Sherman Act to the oil industry, which are of great importance both because of their sweeping application to marketing practices in that industry and because of the directness with which they raise certain issues of economic theory and policy. Second, the fiftieth anniversary of the Sherman Act on July 2, 1940 provides an appropriate occasion for a review of the …

The Premises Of The Judgment As Res Judicata In Continental And Anglo-American Law, Robert Wyness Millar

Michigan Law Review

The newly reconstituted Supreme Court of the United States has become the center of an earnest controversy with respect to the true role of the Court in constitutional interpretation. The general controversy is, of course, far from new. What makes it of more than ordinary significance is that the Court itself is revealing a tendency substantially to alter the extent, if not the nature, of judicial review. This tendency has not yet become clearly dominant, but it is apparent enough to shake the implicit faith in the Court of many of those to whom, before 1937, any criticism of the …

Wigmore On Evidence-A Review, John E. Tracy

Michigan Law Review

In 1887 John Henry Wigmore graduated from Harvard Law School. Only four years later, in 1891, there came from his pen an article in the Harvard Law Review entitled "Nemo Tenetur Seipsum Prodere," which showed to the profession that there had arrived at the bar a writer who was not only a deep student of legal history and knew his law of evidence, but who had no hesitation in smashing images, regardless of how sacredly they had theretofore been worshiped.

Constitutional Law - Due Process - Use Of Involuntary Confessions In Criminal Cases, Reed T. Phalan

Michigan Law Review

The practice of wringing confessions from the lips of persons accused of crime forms a substantial blot on the history of the medieval administration of criminal law. Never legalized in England, the practice early earned the condemnation of writers and criticism of courts. From a recognition of human rights and a perception of the unreliability of statements extorted by violence, evolved the general rule, now long recognized in England and the United States, that the accused's involuntary confession is inadmissible in evidence against him. Recently this rule of evidence has been implemented by the recognition of the United States Supreme …

Federal Courts - Jurisdiction Over Violations Of Civil Liberties By State Governments And By Private Individuals, Eugene Gressman

Michigan Law Review

The long-term security of civil liberties in the United States must in the end depend upon the spirit and attitude of the public. Many violations of these rights never reach the stage of justiciable issues. But even when they do, public sentiment is often reflected in the courts. Especially is this true in the state courts, which are often too near local prejudices and entrenched mores to withstand their effect. This situation was recognized as long ago as the Reconstruction Era, when the various civil rights acts provided for federal protection of civil liberties. Apparently it was felt that from …

Railroads -- Extent Of Title Acquired By Railroad By Adverse Possession Of Land Used As Right-Of-Way - Effect On Mineral Rights, Roy L. Rogers

Michigan Law Review

In a recent Michigan case it appeared that for more than the statutory period of limitation the plaintiff railroad had maintained a right-of-way over land to which the defendant held the record title. A decree quieting title in fee simple absolute in the plaintiff railroad was sought in order to determine the ownership of the oil and gas underlying the right-of-way. The court held that the railroad acquired by adverse user of the right-of-way no title to the oil and gas or other minerals beneath the surface of the land.

Taxation - Inheritance And Estate Taxes - Powers Of Appointment, William L. Howland

Michigan Law Review

From time immemorial, problems arising from the creation and exercise of powers of appointment have proven enigmatic to the judiciary. These problems are not decadent but still possess an abundance of vitality. The increased complexity of statutes imposing death taxes has tended to foment litigation. These two fertile sources of intricate problems, in combination, have borne the apprehended fruits. The taxation of powers of appointment has created problems of infinite variety, harassing alike the attorney, the judge and the legislator. The questions involved are not simply of academic or theoretical importance. Under our modern death tax statutes the questions are …

Automobiles - Husband's Liability For Wife's Negligence While Driving Family Auto - "Family Errand" And "Family Purpose" Doctrines - Illinois Rule, Michigan Law Review

Michigan Law Review

Plaintiff's automobile was damaged by collision with an automobile belonging to the defendant while being driven by defendant's wife who was on an errand to purchase a twenty-five cent Hallowe'en party dress for her daughter. The accident was caused by the negligence of the defendant's wife. The defendant, his wife, and their child were living together, and the wife's sole income was derived from her husband, and from this she was to provide clothing and meet other expenses for the child. The circuit court gave judgment of damages to the plaintiff and the defendant appeals. Held, the plaintiff could …

Bankruptcy - Corporate Reorganization - Limitation On The Right To Appeal From An Order For The Allowance Of Compensation In A Corporate Reorganization Under The Chandler Act, Michigan Law Review

Michigan Law Review

A petition for reorganization was approved by the district court, and members of a bondholders' committee were granted an allowance for services. As the award was much less than the amount sought, the committee asked leave to appeal of the circuit court of appeals. Leave was granted and the allowance increased. In the Supreme Court the petitioner claimed that the circuit court of appeals had no jurisdiction on the theory that the committee was confined to an appeal as of right, which could only be taken by filing notice of appeal in the district court. Held, the circuit court …

Corporations - Liability Of Officer For Profits Made Out Of His Office, James D. Ritchie

Michigan Law Review

X, in order to obtain funds with which to bid at a government sale of steel in 1919, offered defendant, president of the Y Bank, a one-half interest in the venture. Subsequently, defendant caused the bank to make large loans to the corporation organized to handle the steel transaction. The loans were approved by the bank's loan committee on defendant's recommendation and were repaid in due time. Within the next three years defendant received from the steel enterprise $75,000 in "salary," $73,125 in dividends, and, finally, $200,000 for the sale of his stock. Upon the directors' refusal to sue, …

Constitutional Law-Delegation Of Legislative Power - Utah Milk Control Act, Edward S. Biggar

Michigan Law Review

The Utah Milk Control Act declared the necessity of stabilizing the production and distribution of market milk, for the purpose of insuring "a continuous and adequate supply of pure, wholesome milk." The state board of agriculture was authorized to fix prices and regulate the surplus of milk in particular marketing areas. Provision was made for public hearings to precede the board's issuance of regulatory orders. In fixing prices, the board was directed to consider the cost of "producing, handling, pasteurizing, and distributing" the milk to be sold. There was no requirement that the orders promulgated contain any specific provisions. Pursuant …

Deeds - Exceptions And Reservations - Use Of Extrinsic Evidence To Interpret Uncertain Exceptions - Exception To Grant Described In Document To Be Drawn, Michigan Law Review

Michigan Law Review

In anticipation of becoming the owner of a tract of land, S agreed to convey to a water company that portion of the land which the company would require for its reservoir. On acquiring the land, S conveyed the tract to F "except about 25/100 acres on the westerly side to be deeded to the Centralia Water Works Co." Ten days later, S conveyed to the water company "all that part . . . that is now or shall hereafter be, covered by water in the reservoir of said . . . company to high water mark in flood time …

Costs - Assessment Of Court Costs Against An Agency Of The Federal Government, Walter Muller

Michigan Law Review

A complaint against defendant, filed in equity by the Reconstruction Finance Corporation, was dismissed without costs, the lower federal court being of opinion that it had no power to impose costs upon a governmental agency. The rule of court which bears on this point says, "costs against the United States, its officers, and agencies shall be imposed only to the extent permitted by law." Held, on appeal to the circuit court of appeals, the district court did have power to assess costs against the Reconstruction Finance Corporation. Reconstruction Finance Corp. v. J. G. Menihan Corp., (C. C. A. …

Federal Courts - Deposition-Discovery Practice - Rule 26 And Hearsay Evidence, Jamille G. Jamra

Michigan Law Review

In an action for personal injuries suffered in defendant's store, plaintiff moved for an order requiring one Jackson to answer certain questions propounded to him at the taking of his deposition. Jackson, an investigator for defendant's insurer, had ascertained certain facts from witnesses to the accident. The questions, to which Jackson objected on the ground of privilege, sought to elicit the number and names of persons who he learned were present at the accident. Held, the motion should be denied on the ground that the evidence sought was hearsay. Poppino v. Jones Store Co., (D. C. Mo. 1940) …

Municipal Corporations - Labor Law - Conflict Of Municipal Ordinance With State Statute, Kenneth J. Nordstrom

Michigan Law Review

Defendant, a member of a machinist's union, was indicted for violation of a city ordinance which prohibited peaceful picketing except by employees employed three months or more at a place of business and who had been so employed within sixty days of the commencement of the picketing. A state statute modeled on the Norris-LaGuardia Act authorized the giving of publicity of labor disputes and forbade the issuing of injunctions for designated types of labor controversies. Held, that the ordinance was void and that the defendant was entitled to picket peacefully a company which had never employed him, but which …

Constitutional Law - Due Process - Freedom Of Religion And Conscience - Compulsory Flag Salute, William F. Andersen

Michigan Law Review

The minor plaintiffs, aged twelve and thirteen, had been excluded from the public school because of repeated refusal to salute the national flag and recite the pledge of allegiance in accordance with an authorized order of the school board. They sought an injunction in the federal district court against such prohibition, alleging that the order violated the Fourteenth Amendment as an infringement on the free exercise of religion in that their beliefs forbade the revering of anything but God. The injunction was granted and the decree was affirmed by the circuit court of appeals. A writ of certiorari was granted …

Measures Of Land Value For Utility Regulation, Lrston R. Barnes

Michigan Law Review

The appraisal of the land of utility corporations presents problems that are not encountered in the valuation of other utility properties. The basic principles and methods of appraisal applicable to other properties are considered inappropriate for the valuation of lands, and certain inconsistencies between the treatment of land and other properties suggest embarrassing questions as to the principles which should guide the regulation of utility rates. Two concrete problems may serve to provide orientation for the discussion which follows: What elements of cost imposed on utilities in the acquisition of real estate are entitled to consideration in establishing rates? To …

Taxation - Income Tax - Interest On Condemnation Award As Capital Gain, John L. Rubsam

Michigan Law Review

Petitioner's land was condemned by the city of New York and as compensation he was awarded a certain sum representing the value of the land and, in addition, a sum classified as "interest" to indemnify the petitioner for delay in payment of the award. The award so classified as "interest" was taxed as "ordinary income" by the commissioner of internal revenue. It was petitioner's contention that such sum denominated as "interest" should have been classed as a "capital gain" and not as "ordinary income." From an order of the board of tax appeals holding this sum "ordinary income," petitioner appealed. …

Some Problems Arising Out Of Deposits To Pay Principal And Interest On Bonds, Paul P. Lipton

Michigan Law Review

Since Lawrence v. Fox contracts students have been puzzled by the numerous and varying relations that may arise when A, the debtor, delivers money to B to pay C, his creditor. Equally puzzling and much more complicated are the rights and relations of the obligor, trustee and bondholders with respect to sums deposited with the trustee to pay principal and interest on bonds.

The insolvency during recent years of many large trust companies that had been named as trustees in indentures securing corporate bonds, having on hand at the time of their failure large sums of money which …

Constitutional Law - Labor Law - Peaceful Picketing Guaranteed By Due Process Clause Of Fourteenth Amendment, Eugene T. Kinder

Michigan Law Review

In the recent Thornhill and Carlson decisions the Supreme Court of the United States declared an Alabama statute and a California county ordinance prohibiting all picketing, peaceful or otherwise, unconstitutional on the ground that such broad legislation deprived employees and union members of their right of free speech, guaranteed by the due process clause of the Fourteenth Amendment to the Constitution of the United States. In holding that employees and workers have a constitutional right to publicize the facts of a labor dispute, the Court was but taking another step in its recent crusade for the preservation of civil liberties. …