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Administrative Law-Judicial Review-Federal Equity "Powers Nov 1934

Administrative Law-Judicial Review-Federal Equity "Powers

Michigan Law Review

Plaintiff's testator, a resident of New York, died there and at the time of his death owned certain oil paintings on temporary loan to an Art Museum in Pennsylvania, on which the State of Pennsylvania levied an inheritance tax. Plaintiff, executor under a will disposing of the pictures, filed a bill in the Federal District Court for Eastern Pennsylvania to enjoin the defendants, tax officials of Pennsylvania, from attempting to impose or collect the inheritance tax. The bill alleged diversity of citizenship and the requisite jurisdictional amount, and further that the imposition of the tax violated the Fourteenth Amendment, depriving …


Constitutional Law - New Deal Legislation - Gold Hoarding Statute Nov 1934

Constitutional Law - New Deal Legislation - Gold Hoarding Statute

Michigan Law Review

Two cases involving acts of Congress passed in March 1933 to prevent the hoarding of gold' were denied a review by the United States Supreme Court on October 8. Both of these cases involved the same facts. Plaintiff had delivered certain gold bars to a bank for safe-keeping. Later the bank notified him that, pursuant to an executive order by the President of the United States, it would have to surrender the gold. Immediately the plaintiff demanded the return of the bullion, which demand was refused, and he filed bills for specific performance of the bailment contract against the bank …


Criminal Law And Procedure - Instruction As To The Reasonable Doubt Of Each Juror Nov 1934

Criminal Law And Procedure - Instruction As To The Reasonable Doubt Of Each Juror

Michigan Law Review

The accused in a criminal prosecution requested, in addition to a general charge on reasonable doubt, an instruction stating, "The court instructs the jury that if after the consideration of the whole case, any juror entertains a reasonable doubt of the defendant's guilt it is the duty of such juror so entertaining such doubt, not to vote for a verdict of guilty, or be influenced in so voting for the single reason that a majority of the jury might be in favor of a verdict of guilty:" This instruction was refused and the defendant appealed from his conviction. Held, …


Innkeepers - Statutory Limitation Of Liability - Necessity Of Strict Compliance As A Condition Precedent To Exemption Nov 1934

Innkeepers - Statutory Limitation Of Liability - Necessity Of Strict Compliance As A Condition Precedent To Exemption

Michigan Law Review

The plaintiff was a guest at a hotel owned by the defendant, and during that period a valuable diamond ring was stolen from his room, without negligence on the part of the defendant. In a suit to recover the value of the ring, the defendant set up a defense by way of the statute exempting innkeepers from liability upon "posting a notice in three or more public and conspicuous places in the office, elevators, or public rooms, or in the public parlors of such hotel" to the effect that the innkeeper would not be liable for any stolen property not …


Limitation Of Actions-Husband And Wife-Suspension Of The Statute Of Limitations During Coverture Nov 1934

Limitation Of Actions-Husband And Wife-Suspension Of The Statute Of Limitations During Coverture

Michigan Law Review

Plaintiff sued in equity to recover for services rendered to her deceased husband for a period of six years prior to her marriage to him. Defendant, the executor of decedent, contended that she could not recover the portion of her claim which represented wages earned more than six years before a claim w.as filed with the estate. Held, the statute of limitations does not run on the claim of one spouse. against the other during the continuance of the marital state, irrespective of whether the claim arose before or during coverture. Therefore, plaintiff could now recover for the six …


Practice And Procedure - Direction Of Verdict - Scintilla Rule Nov 1934

Practice And Procedure - Direction Of Verdict - Scintilla Rule

Michigan Law Review

In an action to recover from the defendant gas company damage to the plaintiff's building caused by a gas explosion resulting from a defective pipe, the plaintiff's only evidence to prove the defendant's duty to repair it was that the pipe was used exclusively for the conveyance of the defendant's gas, and that the meters to which the pipe was connected were owned and controlled by the defendant. The trial court, by virtue of the scintilla rule, submitted the case to the jury which rendered a verdict for the plaintiff. Held, the scintilla rule no longer prevails in Ohio, …


Practice And Procedure - Seventh Amendment- Power Of Federal Court To Increase Inadequate Verdict Nov 1934

Practice And Procedure - Seventh Amendment- Power Of Federal Court To Increase Inadequate Verdict

Michigan Law Review

A jury in a federal court awarded the plaintiff $500 for injuries received in an automobile accident. The plaintiff thereupon moved for a new trial on the · ground of inadequate damages. The trial judge, having obtained the consent of the defendant to entry of judgment for $1,500, denied the motion. Plaintiff appealed. Held, (Morton, C. J., dissenting) such procedure operates as a violation of the Seventh Amendment, and the only course open to a federal court in a case where damages are inadequate is to grant a new trial. Schiedt v. Dimick, (C. C. A. ·1st, 1934) …


Trusts - Change Of Circumstances As Basis For Variation Of Trust Instrument Nov 1934

Trusts - Change Of Circumstances As Basis For Variation Of Trust Instrument

Michigan Law Review

The testator left his estate to trustees with directions to pay the income to his widow and three sons in equal shares, the principal to vest in the sons upon his widow's marriage or death. The widow in addition was given the use of the family homestead or the use of a new home not to exceed the price of $25,000. The homestead, valued at $200,000, became undesirable for residential purposes due to the growth of the business center of the city. The widow petitioned the court to direct the trustees to pay her $15,000 a year from the trust …


University Of Michigan Law School Grading Regulations, University Of Michigan Law School Jun 1934

University Of Michigan Law School Grading Regulations, University Of Michigan Law School

Miscellaneous Law School History & Publications

Outline of University of Michigan Law School grading regulations


Physicians And Surgeons-When Physician Obliged To Disclose Information Gained Through Doctor-Patient Relation Jun 1934

Physicians And Surgeons-When Physician Obliged To Disclose Information Gained Through Doctor-Patient Relation

Michigan Law Review

In April of this year a Minnesota physician, Dr. Clayton E. May, treated for gunshot wounds a certain undesirable person, John Dillinger, very much in demand by the police. He further neglected to inform the police concerning his ministrations, and as a result, was tried in a federal court on a charge of harboring a fugitive wanted under a federal warrant, found guilty, and sentenced to serve two years in a penitentiary and to pay a fine of $1,000. Said a prominent English medical journal in commenting on the case: " . . . colleagues in every country will applaud …


Public Utilities-Rate Base-Allowance For Depreciation Jun 1934

Public Utilities-Rate Base-Allowance For Depreciation

Michigan Law Review

Plaintiff toll bridge company appealed from an order of the Pennsylvania Public Service Commission which set a value for rate-making purposes on their bridge property, constructed in 1924-25, identical to the original valuation order of 1926, for the rate-base as of February 2, 1932. The order allowed a depreciation deduction annually which, with 4 per cent simple interest, would amount to enough to replace the bridge at the end of its estimated period of usefulness. The company claimed the order was confiscatory, as based solely on original cost, without taking into account current cost of reproduction; and that interest should …


Actions-Declaratory Judgments-Jurisdiction To Grant Jun 1934

Actions-Declaratory Judgments-Jurisdiction To Grant

Michigan Law Review

A will was duly probated in the county court. By it the plaintiff and defendant were appointed guardians of the testator's minor children. The guardians did not get along together, and could not agree as to how the funds of their wards should be invested. Finally, proceedings were properly brought in the county court to have questions concerning the care of the funds settled. While such proceedings were pending, the plaintiff, evidently not content to have the difficulty settled in this manner, brought an equity suit in the district court against her co-guardian under the Declaratory Judgments Act, in which …


Federal Trade Commission-Recent Trends In Interpretation Of The Federal Trade Commission Act Jun 1934

Federal Trade Commission-Recent Trends In Interpretation Of The Federal Trade Commission Act

Michigan Law Review

The Federal Trade Commission has never been a favored child of the courts. Beginning with the first case to which the Commission was a party, the attitude of the judiciary has clearly been unfriendly. The Commission gets its powers from the Clayton Act and from the Federal Trade Commission Act. The courts have interpreted the Clayton Act strictly, and there is no sign of a change of heart by the majority of the Supreme Court in that respect; it is believed, however, that a few of the recent cases under the Federal Trade Commission Act, both in the Supreme Court …


Bankruptcy-Debtor Proceedings-Power Of Court To Enjoin State Court Actions Jun 1934

Bankruptcy-Debtor Proceedings-Power Of Court To Enjoin State Court Actions

Michigan Law Review

A debtor proceeding was initiated in a Florida federal court and an ancillary proceeding was begun in a New York federal court. The latter court enjoined petitioner, who had obtained a tort judgment against the debtor in a New York state court, which judgment had been affirmed by the Appellate Division, from arguing the case as appellee in the New York Court of Appeals and from continuing to prosecute an action commenced by him (petitioner) against the sureties on an appeal bond filed by the debtor pending the appeal to the Appellate Division. Shares of stock had been pledged by …


The Grant Of Rule-Making Power To The Supreme Court Of The United States, Edson R. Sunderland Jun 1934

The Grant Of Rule-Making Power To The Supreme Court Of The United States, Edson R. Sunderland

Michigan Law Review

The determined effort on the part of the American Bar Association, which continued without relaxation for almost a quarter of a century, to place the regulation of federal trial court procedure in law actions under the control of the Supreme Court of the United States, has at last been successful. Senate Bill No. 3040, granting full rulemaking power to the Supreme Court, became a law on June 19, 1934.


Banks And Banking--Holder Of Draft Paid For By Check On Issuing Bank As Preferred Claim Upon Drawer's Insolvency Jun 1934

Banks And Banking--Holder Of Draft Paid For By Check On Issuing Bank As Preferred Claim Upon Drawer's Insolvency

Michigan Law Review

A depositor presented his own check to his bank and received in exchange a New York draft drawn by the bank payable to a third person. The drawer bank was closed and the draft was dishonored. The depositor redeemed the draft and sought to establish a preferred claim against the bank's assets. In Fulton v. Baker-Toledo Co. the court held that a trust existed in favor of the depositor, under an Ohio statute which declares that when a check drawn by a depositor is presented to his bank for "collection and payment," and such check is charged against the depositor's …


Corporations-Qualifications Of Officers-Effect On Existing By-Laws Of Change In Statute Jun 1934

Corporations-Qualifications Of Officers-Effect On Existing By-Laws Of Change In Statute

Michigan Law Review

Corporate by-laws adopted under and following Act No. 84, Michigan Public Acts of 1921, required that directors be chosen from stockholders, the positions to become vacant should the directors dispose of their stock. In 1931 the statute was changed, now reading that "directors . . . need not be shareholders unless the articles so provide." The by-laws were not altered. Qualified directors subsequently disposed of their stock and petitioned the chancery court under the statute for dissolution of the corporation and appointment of a receiver. Appealing from an order granting that petition, creditors and stockholders of the corporation contended that …


Effect Of Insolvency Proceedings On Creditor's Right To Interest, Fred T. Hanson Jun 1934

Effect Of Insolvency Proceedings On Creditor's Right To Interest, Fred T. Hanson

Michigan Law Review

Where the claims of all creditors are of the same class and. assets are insufficient to pay in full the amount due on all claims when insolvency proceedings are begun, the general rule is that interest thereafter accruing will not be included in computing dividends on claims. The reasons usually given for this rule are: (a) The delay in payment is not the act of the debtor but is an act of the law for the mutual benefit of all the creditors. (b) In the case of claims bearing different rates of interest, it would be inequitable to permit the …


Amendments To The Securities Act Of 1933, Laylin K. James Jun 1934

Amendments To The Securities Act Of 1933, Laylin K. James

Michigan Law Review

Title II of the Securities Exchange Act of 1934 amends the Securities Act of 1933. These amendments make substantial concessions to the persistent and continuous clamor against the Securities Act. They will help to allay some of the fears of corporate managements and merchant bankers. The changes affect the definition section, the exemptions, the prospectus, the civil liabilities, and administration provisions.


The Johnson Amendment To The Judicial Code, Edwin C. Goddard Jun 1934

The Johnson Amendment To The Judicial Code, Edwin C. Goddard

Michigan Law Review

The so-called Johnson bill amending the Judicial Code was passed by Congress and signed by the President on May 14, 1934. The bill was the result of long agitation against the alleged pernicious interference by United States District Courts with rate regulations of the state utility commissions and the state courts. It was charged that the removal of cases from state to federal tribunals was burdening the District Courts and, what was far more serious, was favoring the public utilities and preventing their proper state regulation by submitting controversies to judges having life tenure and who were out of touch …


Administrative Tribunals-Notice And Hearing Jun 1934

Administrative Tribunals-Notice And Hearing

Michigan Law Review

The State Highway Commissioner proceeded against the defendant railroad under a Virginia statute empowering him to order the removal of any railroad grade crossing and the substitution of an elevated road when in his opinion public safety and convenience demanded it. No notice and hearing was given or required, and the only judicial recourse was an action in equity in the event of "arbitrary" action. Held, by a six-three decision, that although it is assumed that a state legislature might order the same action, it by no means follows that an administrative officer may be empowered to act with …


Torts - Libel - Photographs - Right Of Privacy Jun 1934

Torts - Libel - Photographs - Right Of Privacy

Michigan Law Review

Defendant in its newspaper published a photograph of plaintiff and her husband's chauffeur standing in front of an airplane at an airport. The picture was captioned "Principals in Local Divorce Scandal," and the accompanying news story stated that plaintiff had sued her husband for divorce, the husband had filed a cross bill, and he had sued the chauffeur for alienation of affections. Plaintiff's declaration alleged that the picture had been cut from a larger one in which her husband had appeared, that the airplane was her husband's, and that the picture was believed to have been taken under a contract …


Wills-Right Of Beneficiaries To Compromise So As To Defeat Provisions Of Will-Waiver Of Benefit Jun 1934

Wills-Right Of Beneficiaries To Compromise So As To Defeat Provisions Of Will-Waiver Of Benefit

Michigan Law Review

Testator died leaving a valid will. The beneficiaries, who were also the heirs at law, presented a stipulation to the court, signed by all the parties in interest, agreeing that the will should not be admitted to probate; and the court refused the will. Later a dispute arose as to the settlement, and some of the beneficiaries brought a bill in equity to set aside the court order. Held, the agreement was supported by a valid consideration and is binding on the parties. Order of the court refusing probate upheld. In re Murphy's Estate, (Iowa 1934) 252 N. …


The Securities Exchange Act Of 1934, John E. Tracy, Alfred Brunson Macchesney Jun 1934

The Securities Exchange Act Of 1934, John E. Tracy, Alfred Brunson Macchesney

Michigan Law Review

The Congress has enacted and the President has just signed an act for the regulation of stock exchanges, to be known as the Securities Exchange Act of 1934. In order that we may understand the nature of the Act and the reasons for its enactment, it will be well first to consider briefly the organization and functions of stock exchanges, the evils that are claimed to have arisen from their existence, and some of the previous attempts which have been made to prevent the occurrence of such evils.


The Varying Meaning And Legal Effect Of The Word "Void", Abraham J. Levin Jun 1934

The Varying Meaning And Legal Effect Of The Word "Void", Abraham J. Levin

Michigan Law Review

To interpret properly what has been said or written necessitates our going beyond the dictionary into the sphere of action and reality. In its narrowest sense the, meaning of a word is the single effect which is given to it in the specific case. Insofar as nature repeats itself are we able to build up concepts and symbols which function in substantially the same way in different cases. But the mind must always be ready to discard an accepted definition of a word symbol for the particular legal effect which the circumstances demand. The same word or symbol with the …


Wills-Contract Not To Contest Jun 1934

Wills-Contract Not To Contest

Michigan Law Review

A testatrix left the bulk of her estate to the plaintiff whom she named as her executor. Defendant, dissatisfied with his bequest, threatened to contest the will. Thereupon, the parties entered into a contract whereby the plaintiff agreed to give the defendant a piece of land and a sum of money in addition to his legacy in consideration of defendant's promise not to contest the will. Shortly thereafter defendant joined relatives of the decedent in opposing probate. In an action in equity to specifically enforce the agreement, held, that the contract was valid and that the defendant be permanently …


Taxation-Tax On Rolling Stock-Situs Of Personal Property Employed In Interstate Commerce Jun 1934

Taxation-Tax On Rolling Stock-Situs Of Personal Property Employed In Interstate Commerce

Michigan Law Review

An Illinois corporation owned a fleet of tank cars which were used to carry oil from the corporation's Oklahoma refinery to other States. The State of Oklahoma sought to impose a tax upon the entire fleet, although the cars were outside of Oklahoma at least twenty days each month. Held, Oklahoma had only the jurisdiction to tax the average number of tank cars habitually employed within the State. Johnson Oil Refining Co. v. Oklahoma, 290 U.S. 158, 54 Sup. Ct. 152 (1933).


Constitutional Law-Validity Of Statute Exempting Insurance Benefits From Process For Debts Jun 1934

Constitutional Law-Validity Of Statute Exempting Insurance Benefits From Process For Debts

Michigan Law Review

C, a judgment creditor of W, instituted garnishment proceedings to recover the amount of the judgment out of moneys owed by the X insurance company to W as beneficiary of H's life insurance. Subsequently the Arkansas legislature passed a statute exempting all moneys paid or payable to any resident of the State as the insured or beneficiary designated under any life, sickness, or accident insurance policy, from liability or seizure under judicial process, and provided that such benefits should not be subjected to the payment of any debt. Held, by a unanimous decision of the United …


Contracts - Consideration - Agreement To Reduce Rent Reserved In Lease May 1934

Contracts - Consideration - Agreement To Reduce Rent Reserved In Lease

Michigan Law Review

Plaintiff sued defendants, who were trustees of a business trust, to enforce personal liability upon them for accrued rent due under a lease. When the lessee company, which was losing money because of the depression, threatened to vacate the premises, the plaintiff acquiesced in the lessee's demand that the rent be reduced for the balance of the term. Plaintiff sought to recover the amount due under the lease, claiming that the agreement for reduction was without consideration and therefore a nullity. Held, that in view of plaintiff's knowledge of the lessee's financial condition, the latter's agreeing to remain in …


Banking Reform By Statute, Robert G. Rodkey May 1934

Banking Reform By Statute, Robert G. Rodkey

Michigan Law Review

The lamentable failure of our banking system to function satisfactorily in the performance of its duties to the public raises at the outset two kinds of questions. Is there something fundamentally unsound about the structure of our banking machinery or does the trouble reside merely in a lack of understanding on the part of bankers of the proper management of the detailed activities in which banks necessarily engage? Or may the unsatisfactory result be ascribed to a combination of these two alternatives? The position taken in this paper is that the structure of our banking system is inherently unsound and …