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University of Michigan Law School

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Bills And Notes-Negotiability Of Corporate Debentures Jun 1931

Bills And Notes-Negotiability Of Corporate Debentures

Michigan Law Review

Many corporate bonds and debentures contain some such reference provision as the following: "* * * all [bonds, debentures] issued under a certain Trust Agreement, dated as of June 15, 1926, executed by the Company to the National City Bank of New York, as Trustee, to which Trust Agreement reference is hereby made for a statement of the terms under which the said Debentures are issued and the rights and obligations of the Company, of the Trustee and of the respective holders of the said Debentures under said Trust Agreement. * * *." To this clause some of these securities …


Corporations-Duty Of Corporate Trustee To Record Mortgage Securing Bonds Jun 1931

Corporations-Duty Of Corporate Trustee To Record Mortgage Securing Bonds

Michigan Law Review

Plaintiff became the holder of bonds issued under and secured by a collateral trust agreement executed in Pennsylvania. The mortgage contained the provision that " * * * the trustee, save for its gross negligence or wilful default, shall not be personally liable for any loss or damage" and further that "It shall be no part of the duty of the trustee to record this instrument as a mortgage." The mortgage was not recorded nor the mortgage debt satisfied. Plaintiff sued the trustee in New York for negligence. Held, the contract limited the obligations and duties of the trustee, …


Negligence-Proximate Cause-Duty Of Parking Lot Owner To Car Owner Jun 1931

Negligence-Proximate Cause-Duty Of Parking Lot Owner To Car Owner

Michigan Law Review

Plaintiff parked his car in defendant's parking lot, which was open to the public although no attendant appears to have been on duty. There was an unguarded excavation about forty feet to the rear of the space chosen by the plaintiff. In preparing to leave the lot, plaintiff cranked his car which, apparently, had been left in reverse. The car backed into the excavation, despite plaintiff's efforts to get it under control, and plaintiff sued the lot owner for injuries resulting. Held, that the defendant parking lot owner was not liable. Fielding v. S. Z. Poli Realty Co. (Mass. …


Torts-Defective Trees-Duty Of Abutter Jun 1931

Torts-Defective Trees-Duty Of Abutter

Michigan Law Review

While the plaintiff was travelling along the public highway, he was injured by the falling of a decayed tree which stood within twenty feet of the highway upon the adjoining land of the defendant. On sustaining a demurrer to the declaration, the court held that there was no duty upon the rural abutter to inspect the tree. Chambers v. Whelen, et al. (C. C. A. 4th, 1930) 44 F.(2d) 340.


Courts-Power To Direct Verdicts Where Forbidden By State Constitution Jun 1931

Courts-Power To Direct Verdicts Where Forbidden By State Constitution

Michigan Law Review

ln a suit for personal injuries the district court of the United States for the district of Arizona directed a verdict for the defendant on the ground that the plaintiff was guilty of contributory negligence. The constitution of Arizona, sec. 5, art. 18 provides: "The defense of contributory negligence or of assumption of risk shall, in all cases whatsoever, be a question of fact and shall, at all times, be left to the jury." Held, that this section is not binding on a federal court sitting in Arizona, and does not prevent such court from directing a verdict when …


Courts-Removal Of Causes-Jurisdictional Amount Jun 1931

Courts-Removal Of Causes-Jurisdictional Amount

Michigan Law Review

Two suits for personal injuries, in each of which a claim for $5,000 was made, were removed to the federal court by defendant. Plaintiff's counsel in his opening statement said that as the result of the injuries one plaintiff was unable to work for two weeks and visited his doctor seven times and that the other was away from work for three weeks and also saw his doctor seven times. The wages of the first plaintiff were $55 a week; those of the second averaged $75 a week. He further stated that the injuries were not permanent, and that, except …


Deeds-Delivery In Escrow-Effect On Income Tax Jun 1931

Deeds-Delivery In Escrow-Effect On Income Tax

Michigan Law Review

A taxpayer, by written contract, had agreed to sell a 99-year leasehold for $195,000. $50,000 was to be paid in 1920, and the balance in 1921. The first payment was made in October, 1920, and a deed put in escrow, to be handed to the grantee on payment of the balance. The transaction was fully carried out as per contract, and the taxpayer was assessed income tax on the entire $195,000 as of 1920. Held, the deed having been delivered in escrow, the title relates back to the original delivery on performance of the condition, showing a completed transaction …


Trusts-Liability Of Trust Estate For Torts Of Trustee Jun 1931

Trusts-Liability Of Trust Estate For Torts Of Trustee

Michigan Law Review

Plaintiff, an employee of a laundry of which the legal title was held in trust, was injured by an unguarded machine. The trustee was sued in tort in his representative capacity. There was no evidence as to whether the trustee himself or some agent was directly responsible for the condition of the premises. Held, the judgment of the lower court, directing that the plaintiff be paid out of the assets of the trust estate, was correct. Where the trustee is charged with the duty of carrying on a business the trust estate may be held liable for the negligence …


Vendor And Purchaser-Vendee's Lien-Failure Of Title Jun 1931

Vendor And Purchaser-Vendee's Lien-Failure Of Title

Michigan Law Review

The vendee of a contract for the sale of land discovered that there was great doubt as to whether the buildings were within the bounds described in the contract and whether there were encroachments. Alleging that these defects could not be corrected, he brought a bill in equity seeking cancellation of the contract and praying for a lien upon the lands for the money paid and the expenses incurred. The vendor counter-claimed for specific performance. Held, where the purchaser properly invokes the jurisdiction of the court and where it would be inequitable to compel specific performance, so far as …


Book Reviews Jun 1931

Book Reviews

Michigan Law Review

Multiple book reviews by various authors.


Trusts-Right Of Trustee To Purchase Trust Property May 1931

Trusts-Right Of Trustee To Purchase Trust Property

Michigan Law Review

The trustees under a will filed a petition in the district court asking for an order of court authorizing them to sell and convey to two of the trustees a portion of the real estate held by them in trust, and for authority to sell and convey the remainder of the real estate to the husband of one of the trustees. Three of the beneficiaries were not sui juris, and the remaining beneficiaries refused to give their consent. Held, that a trustee can not purchase trust property from himself when the beneficiary is not sui juris or when …


Gifts-Necessity Of Acceptance May 1931

Gifts-Necessity Of Acceptance

Michigan Law Review

The deceased was president of a water company and held stock in it. After his death the widow claimed part of this stock as a gift from her husband. A written assignment of the stock claimed, signed by the deceased, was introduced in the evidence to substantiate her claim. There was also evidence that the deceased had informed others that he had transferred most of his stock to his wife. But there was no proof that the wife knew of the transfer until after the death of her husband. Held, that an unconditional acceptance on the part of the …


International Law--State Immunity--Waiver--Execution May 1931

International Law--State Immunity--Waiver--Execution

Michigan Law Review

Some interesting illustrations in the field of state immunity have been afforded by the litigation arising out of a contract made by the Swedish State Railways Administration (Kunglig Jamvagsstyrelsen) to buy coal from the American firm of Dexter and Carpenter, shortly after the War. Although the contract was on "c.i.f." terms, the National City Bank, in which funds for the payment for the coal had been deposited, paid for part of this coal- upon presentation of insurance certificates instead of policies. As a consequence, when one shipment of the coal was lost at sea, the Railways were unable to recover …


Limits Of Trade Association Activity Under The Antitrust Act May 1931

Limits Of Trade Association Activity Under The Antitrust Act

Michigan Law Review

Two recent decisions of the United States Supreme Court serve to focus attention on the legal limits of concerted action under the Sherman Anti-Trust Act by members of trade associations.


Appeal And Error- Crimes - Evidence Not Objected To At Trial May 1931

Appeal And Error- Crimes - Evidence Not Objected To At Trial

Michigan Law Review

The defendant was convicted of murder in the first degree. At the trial, certain incompetent testimony was placed in evidence by the prosecution, to which the defendant's attorney failed to object. The point was sought to be raised on appeal under N. J. Comp. Stat. 1910 sec. 136, which provides that, in criminal cases, if "the plaintiff in error on the trial below suffered manifest wrong or injury, either in the admission or rejection of testimony, whether objection was made thereto or not * * * the appellate court shall remedy such wrong or injury * * * and order …


Landlord And Tenant--Liability Of Landlord To Adjacent Owner For Nuisances Created By The Tennant May 1931

Landlord And Tenant--Liability Of Landlord To Adjacent Owner For Nuisances Created By The Tennant

Michigan Law Review

L's lands, which occupied the bed and west bank of Santiago Creek, separated P's land from the creek. T held under a lease from L. T excavated for sand, rock and gravel in such a way as to constitute a nuisance. By mutual agreement L and T cancelled the old lease and entered into a new one. Subsequent to the new lease a flood occurred and, as a result of the previously created nuisance, part of P's land was washed away. P sued L. The court instructed that if a nuisance were created during the first lease and was in …


Treaties-Effect Of War On Commercial Treaties May 1931

Treaties-Effect Of War On Commercial Treaties

Michigan Law Review

The Sophie Rickmers, a German merchant vessel registered at Hamburg and owned by a German corporation with principal place of business there, entered New York Sept. 27, 1921. Upon its entry a tonnage duty of fifty cents per ton was collected under U. S. Rev. Stat. sec. 4219 as amended by 19 Stat. 250 (46 U. S. C. A. 121), and sec. ,4225 (46 U. S. C. A. 128), in addition to the six-cent tonnage duty under 36 Stat. 111 (46 U. S. C. A. 121). The treaty of the United States made in 1827 with the Hanseatic Republics, 1 …


The Rule In Lemayne V. Stanley, Philip Mechem Apr 1931

The Rule In Lemayne V. Stanley, Philip Mechem

Michigan Law Review

In the leading case of Lemayne v. Stanley the testator's will, written by his own hand, began: "In the name of God, Amen, I John Stanley make this my last will and testament * * *" and was otherwise unsigned. The court of common pleas held the will duly signed, "for being written by himself, and his name in the will, it is a sufficient signing within the statute which does not appoint where the will shall be signed, in the top, bottom or margin, and therefore a signing in any part is sufficient."


Collateral Attack Upon Foreign Judgments The Doctrine Of Pemberton V. Hughes, Fowler Vincent Harper Apr 1931

Collateral Attack Upon Foreign Judgments The Doctrine Of Pemberton V. Hughes, Fowler Vincent Harper

Michigan Law Review

In Pemberton v. Hughes the action was brought in England, by one Sarah E. Pemberton claiming to be the widow of Francis Alexander Pemberton, for certain property rights incident to widowhood. Whether plaintiff was the widow of Pemberton depended upon the validity of their alleged marriage, which in tum depended upon the validity of a Florida divorce of the lady from a former husband. In the divorce action in question, service of summons had been made upon the present plaintiff one day less than the statutory period before appearance. Under the law of Florida, such a defective service rendered the …


Recognition Cases In American Courts, 1923-1930, John S. Tennant Apr 1931

Recognition Cases In American Courts, 1923-1930, John S. Tennant

Michigan Law Review

Although the Soviets have maintained complete, uninterrupted, and practically undisputed control over most of the territory of the former Russian Empire for more than ten years, the United States still refuses to recognize the Soviet government as the international representative of Russia. The first general consideration of the legal situation engendered by the policy of our government was contained in an article by Professor Edwin D. Dickinson, "The Unrecognized Government or State in English and American Law,'' which appeared in the Michigan Law Review in 1923. In view of the importance of this matter, and the number of cases involving …


Conflict Of Laws - Statute Of Limitations - Applicability Apr 1931

Conflict Of Laws - Statute Of Limitations - Applicability

Michigan Law Review

Goods, shipped from France on a vessel of the French line, were damaged by seawater. The bills of lading were issued in France, containing a clause that litigation or disputes arising from their interpretation or execution should be judged according to French law. When the holders of the bills libeled the French line, they were met with the defense that the French Code allowed suit on such claims only if within one year after the ship arrived, which period had passed. Section 433 of the French Commercial Code, to the effect that such claims were barred by a one-year prescription …


Contracts-Liability Of Assignee For Unfullfilled Duties Of His Assigned Apr 1931

Contracts-Liability Of Assignee For Unfullfilled Duties Of His Assigned

Michigan Law Review

Plaintiff contracted for the sale of lands with H., title being reserved in the plaintiff. The contract purported to bind the assigns of both parties, and contained an acceleration provision in favor of the plaintiff on default of any payment. Under North Dakota law the parties were substantially in the position of vendor-mortgagee and vendee-mortgagor. H then assigned to the defendant who made payments to the plaintiff, and there was also testimony indicating that in the printed form of the assignment defend ant had promised the assignor to assume the duties under the original contract. Upon default and foreclosure sale …


Crimes-Right Of Jury To Recommend Mercy Apr 1931

Crimes-Right Of Jury To Recommend Mercy

Michigan Law Review

In a trial for murder, under a statute which provided that if the jury found the accused guilty of murder they might recommend him or her to the mercy of the court, thus reducing the punishment from death to life imprisonment, the court instructed the jury, ''You cannot of your own free will recommend or not recommend [mercy] because you are opposed to capital punishment." Exception was taken on the grounds that this circumscribed the statutory privilege of the jury to recommend mercy. Held, the instruction was erroneous and constituted grounds for new trial. State v. Blakely (S. C. …


Taxation-Excise Measured By Income From Copyrights Apr 1931

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 …


Corporations-Subsidiary's Evasion Of Income Tax Law By Contract With Parent Company-Income Attributable To Business Transacted Within The State Mar 1931

Corporations-Subsidiary's Evasion Of Income Tax Law By Contract With Parent Company-Income Attributable To Business Transacted Within The State

Michigan Law Review

The Palmolive company sought to reduce to a minimum the amount of its income taxable in Wisconsin. Three companies were formed which, for convenience' sake, will be designated as: parent company, a Delaware corporation; plaintiff company, a Delaware corporation; and Wisconsin company, a Wisconsin corporation. The parent company acquired all the capital stock of the Wisconsin company, and then acquired all its assets outside the state of Wisconsin, surrendering therefor part of the stock of the Wisconsin company so acquired. The balance of the capital stock of the Wisconsin company the parent company transferred to plaintiff company in exchange for …


The New Michigan Court Rules, Edson R. Sunderland Mar 1931

The New Michigan Court Rules, Edson R. Sunderland

Michigan Law Review

There are two features of general interest connected with the revised system of practice which went into operation in Michigan on January 1, 1931. The first is the manner of employing the rule-making power, and the second is the content of the new rules.


Admiralty-Jurisdiction-Workmen's Compensation Mar 1931

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 …


Constitutional Law-Due Process-Reasonableness Of Police Regulation Mar 1931

Constitutional Law-Due Process-Reasonableness Of Police Regulation

Michigan Law Review

The New York Agriculture and Markets Law, (Cons. Law, c. 69), sec. 252, 253, required an annual license of all persons or corporations gathering milk from producers for manufacture or resale. This was to be issued only upon execution of a bond for at least $2,000, conditioned upon the compliance with this law and the prompt payment to producers for milk or cream bought by the gatherer. The commission, however, could by formal order relieve the gatherer from having to file this bond if satisfied as to the gather's solvency and probable ability to pay for milk purchased. In case …


Malpractice Actions And Compensation Acts, Paul A. Leidy Mar 1931

Malpractice Actions And Compensation Acts, Paul A. Leidy

Michigan Law Review

S, an employee, is injured as the result of the negligence of his employer, M; S is taken for treatment to the office of X, a competent physician or surgeon selected by S or by M; on this particular occasion X is negligent and as a result of X's negligence S's two weeks' injury is aggravated and the period of disability becomes one of two months' duration. At common law, inasmuch as the original injury was one for which M was legally responsible, S could recover from M for the entire disability-that resulting directly from the original negligence of M …


Property-Meander Lines As Boundaries Mar 1931

Property-Meander Lines As Boundaries

Michigan Law Review

In a recent decision the supreme court of Michigan has considered anew, and with refreshing insight, the significance of a meander line as a boundary. The case arose on a bill to foreclose a land contract to which the defendant filed a cross-bill alleging fraud in the sale. The property which abutted on Lake Michigan was represented by plaintiff's agent as extending to a point about one hundred feet from the shore of the lake. The meander line was two hundred seventy-seven feet from the water's edge. On the theory that the plaintiff had no interest in the strip between …