Digital Commons Network^™

The Equitable Lien As A Remedy For Breach Of Contract

Michigan Law Review

Modern decisions have developed the equitable lien as an important procedural device alongside the equitable remedies of constructive trust and subrogation, with both of which it is intimately connected. The equitable lien or charge, enforceable by foreclosure and sale, is in many situations the most convenient and flexible device for enforcing equitable obligations. A sphere of activity in which it has already proved useful, and in which its usefulness may increase, is in the field of breach of contract. The equitable lien here provides an intermediate ground between affirmative specific performance and complete rescission.

Corporations - Duty Of Director To Stockholder On Stock Exchange Sales

Michigan Law Review

The recent case of Goodwin v. Agassiz presents the problem of the duty owed by a director to existing and prospective stockholders in its most typical and difficult form. The defendants were president and general manager, respectively, as well as directors of the Cliff Mining Corporation which owned mineral lands in Northern Michigan. The stock of the corporation was listed on the Boston Stock Exchange. The defendants in their capacity of directors had knowledge of a geologist's report which forecast possible existence of copper deposits in the corporation's lands. The defendants were also directors of another mining corporation owning lands …

Highways - Underpass As Highway Use

Michigan Law Review

The defendant was the owner of a gravel pit, separated from his railway shipping facilities by a highway, the fee of a portion of which was owned by the plaintiff. A bill was filed to restrain the construction under the highway of a passageway between the railroad and the gravel pit, permission for which construction had been granted by the state highway commissioner. The bill was dismissed, and on appeal, held, by an evenly-divided court, that the judgment be affirmed. Grand Rapids Gravel Co. v. William J. Breen Gravel Co., 262 Mich. 365, 247 N. W. 902 (1933).

Insurance - Concept Of Indemnity As Limiting Recovery On Fire Insurance Policies

Michigan Law Review

In the case of Savarese v. Ohio Farmers' Insurance Co. the New York Court of Appeals recently held that a mortgagee, insured against fire loss under a standard mortgagee clause inserted in the policy of the owner, could recover on the policy despite the fact that the owner had gratuitously completely restored the premises after the fire. The court reasoned that to deny recovery would be to permit an act of the owner (mortgagor) to defeat the rights of the mortgagee, in contravention of the terms of the mortgagee clause; also that while a mortgagee has an insurable interest only …

Municipal Corporations - Power To License - Discretionary Power In Administrative Officers

Michigan Law Review

The City Council of Philadelphia enacted an ordinance requiring as many officers or firemen as the Director of Public Safety should deem necessary to be present at all athletic contests for profit, and further provided that the officers or firemen so stationed should be compensated at the rate of $5.50 per day by those persons requiring or demanding such service. The plaintiff brought this suit in equity to declare invalid and restrain the enforcement of the ordinance. The lower court held that the ordinance was invalid, but the supreme court reversed this decision and held that this was a valid …

Certain Evasive And Protective Devices Affecting Succession To Decedents' Estates, Alvin Evans

Michigan Law Review

In Anglo-American law for many generations the power of an owner of property to determine the disposal of his estate at death has met with but comparatively few limitations. The statute creating this power was motivated by the assumption that the interest of the owner, reaching even beyond death, is paramount to other social interests. This power is an important item in a capitalistic system. And even if he does not exercise his power, the decedent may rest assured that another statute will do for him approximately what he may be supposed to have desired.

Conflict Of Laws-Jurisdiction In Rem Of Documented Claims

Michigan Law Review

A court has jurisdiction in rem over any res of which it has physical control. But does physical control of a document carry with it the control of the chose in action which it represents? This involves an inquiry as to what extent the chose in action is embodied in the document, to what extent the certificate is itself the res or property. Answers to this question have varied with the type of document and even with the type of suit in which the problem has arisen.

Constitutional Law-Right To Competition

Michigan Law Review

The appellee was engaged in the business of selling natural gas. A rival utility entered the field duplicating the plant and facilities of the appellee and established with the consent of the Public Service Commission a rate lower than the prevailing rate charged by the appellee. In an attempt to retain its customers against the lower prices of its competitor the appellee lowered its rate several times. The appellants finally ordered the appellee to submit evidence as to the reasonableness of its rates. Upon investigation the Public Service Commission found that the business in the territory was capable of supporting …

Searches And Seizures - Reasonableness Of Arrest - Use Of Evidence Secured Through Unreasonable Arrest- Statutory Changes

Michigan Law Review

Police officers patrolling Detroit streets in a radio-equipped police car stopped a taxicab in which defendants Stein and Massie were riding. From the statement of the court, the officers' attention was attracted to the cab "because it was 'driving pretty fast,' about 32 miles per hour." The police car pursued it for a block or more; as it drew abreast of the cab defendant Stein was seen to reach into his pocket as if to take something out and put it behind him. "There was something about the cab, probably aside from its speed, which suggested to officer Sullivan that …

Torts - Libel Per Se - Liability Of Newspaper For Republication

Michigan Law Review

A news item published in a newspaper owned by the .defendant stated falsely that the plaintiff was being held in jail on a charge of forgery. From a judgment for plaintiff the defendant appealed. Held, the defamatory statement was "libellous per se," and the defendant was liable though the information was received through a reliable news-gathering agency and was printed without malice. Oklahoma Publishing Co. v. Givens, (C. C. A. 10th, 1933) 67 F. (2d) 62.

Primary Elections And The Constitution, Luther Harris Evans

Michigan Law Review

Recent attempts in Texas and elsewhere to exclude Negro voters from primary elections reveal the unsettled state of constitutional law in this field. Two struggles of principle, individualism versus police power and States' rights versus nationalism, are outlined in the judicial opinions reviewed below under the following headings: (I) Basis of state power over primaries; (II) Limitations on state power over primaries imposed by the Fourteenth and Fifteenth Amendments; (III) Basis of state power over primaries for nominating United States Senators and Representatives; and (IV) Basis of national power over primaries for nominating United States Senators and Representatives.

Criminal Law And Procedure-Former Jeopardy-Tests Of "Same Offence

Michigan Law Review

The provision in the state and federal constitutions that one may not be put in jeopardy twice for the same offense is merely declaratory of the common law, and is in effect in all jurisdictions. However, there is often great difficulty in determining when offenses are the same. Several tests to determine the identity of offenses have been employed.

A Book Of The Law Quadrangle At The University Of Michigan, Fred Nathan

About the Buildings

William Wilson Cook ardently believed that the future of democratic institutions must depend in large measure upon the ability and integrity of the members of the legal profession. He hoped to improve the quality of the leadership provided by that profession by improving the law schools. As the immediate object of his philanthropy he chose his Alma Mater, The University of Michigan Law School. The Law Quadrangle is the physical embodiment of one aspect of his idea and marks a milestone in legal education. In making possible a close fellowship between lawyers, teachers, and students in an inspiring environment he …

Criminal Law And Procedure - "Public Enemy" Statutes - Constitutionality

Michigan Law Review

Defendants were convicted of the crime of being disorderly persons within the meaning of section 167, Michigan Public Acts, 1931, No. 328, which provided that "any person who engages in an illegal occupation or business . . . shall be deemed a disorderly person. Proof of recent reputation for engaging in an illegal occupation or business shall be prima fade evidence of being engaged in an illegal occupation or business." Police officers testified as to the reputation of the defendants for being bootleggers, stick-up men, robbers, and murderers. Held, that section 167 of the statute is unconstitutional and void …

Book Notes

Michigan Law Review

This department undertakes to list and, when possible, describe briefly current books on law and matters closely related thereto.

Process In Actions Against Non-Resident Motorists, Maurice S. Culp

Michigan Law Review

Personal service on the defendant within the jurisdiction of a State is the conventional form of process in personal actions. But considerations of convenience and public need have resulted in recognizing an additional form of process in personal actions against nonresident motorists. Statutes in 35 States authorize the commencement of suit against the non-resident motorist by substituted service on a public official of the State where the cause of action arises; the official is made for this purpose the agent or attorney of the non-resident motorist.

It is proposed herein to discuss (1) the constitutional basis of such legislation, and …

State Taxation Of Interstate Motor Carriers, Paul G. Kauper

Michigan Law Review

Motor transportation for hire, as indicated earlier in the article, has become a business of large proportions and, like every other business, should be subject to the ordinary business taxes. More particularly, since it is a form of public transportation, it should be subject to the same kinds of taxes that are exacted from other businesses of the public utilities type.

Constitutional Law - Federal Control Over Crime - Scope Of Power To Regulate Crime Under The Commerce Clause

Michigan Law Review

The increase of criminal activities interstate in scope, and the growing dissatisfaction with state enforcement of local laws, have focused attention of late upon the power of Congress to regulate crime under the commerce clause of the Constitution. Outstanding among proposals for congressional legislation are the following: making interstate felonies federal offenses; punishing criminals who flee across state lines after committing a crime; and restricting the sale and transportation of firearms. Most, if not all, of this suggested legislation must rest on the commerce clause for its validity. We purpose here to discuss the nature and scope of this power, …

Federal Practice -Jurisdiction Over Non-Federal Questions - Meaning Of Cause Of Action

Michigan Law Review

Petitioners brought suit in a federal court to enjoin the respondents from publicly producing a play, alleging that it infringed a copyrighted play of the petitioners and that it would also constitute unfair competition. The parties were citizens of the same State. After considering the claim of infringement on its merits, the court held that, although there was no infringement threatened, the jurisdiction acquired by reason of that federal question might be retained to consider the issue of unfair competition. Hurn v. Oursler, 289 U.S. 238, 53 Sup. Ct. 586 (1933).

Trade Restraints - Covenants Restricting Owner's Use Of His Premises

Michigan Law Review

Plaintiffs and defendant were competing theatre proprietors, owning buildings on opposite sides of the street in X city. For a monetary consideration defendant covenanted to discontinue forever the use of his building as a public theatre. Plaintiffs sought an injunction upon defendant's breach, and defendant demurred on the ground that the covenant was in restraint of trade and not ancillary to any property interest conveyed and requiring protection. Held, injunction granted, for in Ohio a contract in reasonable restraint of trade is enforceable though not incidental to some other independent contract or conveyance; and, if such transaction is necessary, …

Trade Restraints - Inducing Breach Of Contract

Michigan Law Review

Plaintiff had "exclusive requirement" contracts with 90% of the users of electricity in various communities in Texas. Defendant was in the business of selling municipal electric plants to communities under a plan whereby, on assurance that enough users would enter into exclusive contracts to make the plant a success, the defendant agreed to look for payment to the revenue of the plant only. Installation of a municipal plant would, therefore, necessitate breaches of the "exclusive requirement" contracts on the part of some of plaintiff's customers. Held, that plaintiff was not entitled to an. injunction restraining defendant from inducing plaintiff's …

Municipal Corporations - Municipal Responsibility For The Torts Of Policemen

Michigan Law Review

E, standing near the scene of a holdup in the Bronx, was shot by a stray bullet from the gun of a policeman engaged in pursuing several highwaymen. The Municipal Assembly of New York City enacted in 1927 an ordinance providing that the Board of Estimate is authorized to make an award of damages to such innocent bystanders when injured by policemen. E received an award of $6,740 from the Board for injuries suffered. Upon the Comptroller's refusal to pay it without a judicial declaration of its legality, E sued out a writ of mandamus. It was held that …

The Municipality As A Unit In Ratemaking And Confiscation Cases, Robert D. Armstrong

Michigan Law Review

The recent decision of the Supreme Court of the United States in the so-called Martinsville case has been interpreted by some critics as laying down a "municipal unit doctrine" of rate making, denying to a system utility the right to earn from its entire operations a fair return on the value of its entire property, and substituting therefor a "bundle of rights" to earn in each "municipality" served a fair return on the value of the property used and useful therefor.

Insurance - Failure To Act Promptly On Application - Tort Liability Of Insurer

Michigan Law Review

Although mere delay in passing upon an application for insurance cannot, as a rule, be construed as an acceptance of the offer for a contract of insurance, in recent years some courts have held insurance companies liable in tort where there has been delay in acting upon the policy and the loss sought to be insured against has occurred in the meantime. Plaintiff, to sustain a cause of action in tort, must prove negligence on the part of the insurer, or its agents, and that the policy would have been issued to the applicant but for the negligence. The suit …

Bankruptcy - Fraudulent Transfers -Trustee's Assignee

Michigan Law Review

Since bankruptcy proceedings contemplate a sale of the debtor's assets, the importance of knowing what the trustee may sell is at once obvious. One must, however, go further and inquire as to the rights of purchasers from the trustee. This question assumes importance to the trustee, since it determines what he may sell, and is also important to the purchaser, since it determines what he may buy. The answer determines the efficiency of our bankruptcy machinery. In this comment we propose to consider one phase of this general question: May the trustee assign his right to set aside a fraudulent …

Future Interests -Testamentary Trust -Admissibility Of Evidence Of Barrenness Of Devisee

Michigan Law Review

A testator's will devised his residuary estate in trust to his daughter for life, remainder to her lawful issue, in default of which the corpus was to be distributed to certain charities. The daughter died without issue. After her death the trustee brought suit against the United States for refund of taxes paid, both parties agreeing that the sole question for determination was the admissibility of evidence of the removal of the daughter's generative organs to prove that at the time of the testator's death it was impossible for her to bear issue. Held, such evidence was admissible. Provident …

Bank Reorganization And Recapitalization In Michigan, Ellis B. Merry

Michigan Law Review

On January 2, 1933, 420 state and 68 national banks were operating in Michigan. On February 13, the Governor of Michigan proclaimed a banking holiday for eight days which was extended in effect on February 22. On March 4, the President proclaimed a national banking holiday until March 9. Under the provisions of the President's proclamation lifting the national banking holiday, 198 state and approximately 30 national banks were reopened by the appropriate authorities as "sound" banks. State bank conservators assumed the management and custody of 215 state banks which did not open, on appointment by the Commissioner of the …

Constitutional Law - Interstate Commerce - Motor Carrier Operating Within - Single State As A Link In Interstate Transportation, Paul G. Kauper

Michigan Law Review

The plaintiff was engaged in business as a common carrier of goods by motor vehicle. He transported goods between the docks of Los Angeles harbor and points in and around Los Angeles, but all the goods which he carried were originally shipped in from or were consigned to destinations outside the State. His operations, however, were independent of the operations of connecting carriers. The California Railroad Commission ordered the plaintiff to cease operations until he secured a certificate of public convenience and necessity. Held, on review, that the plaintiff was engaged in interstate commerce, and that the Commission's order …

Constitutional Law-Strike As Interference With Interstate Commerce

Michigan Law Review

Whether the federal courts have jurisdiction to apply the mailed fist of the injunction to the settlement of strike disputes sometimes depends on whether the strike is deemed an interference with interstate commerce. Thus, the Supreme Court held in the recent case of Levering & Garrigues v. Morrin that relief must be denied a group of New York structural steel fabricators who sought to enjoin the boycott activities of the iron workers union, because " . . . the sole aim of the conspiracy was to halt or suppress local building operations as a means of compelling the employment of …

Evidence-The Unchastity Of A Female Witness As A Ground For Impeaching Her Veracity

Michigan Law Review

The underlying question which we propose to consider is this: Has the trait of chastity any such definite correlation with that of veracity that courts are justified in using the former as a criterion of the latter? It must be apparent from even a brief survey of the decisions in this field, and the reasons given therefor, that on this question the courts are swayed far more than ordinarily by their emotional reactions. Buttressed with sentiments that cannot fail to stir the heart of the male in any monogamous community and riveted with references to religion as well as the …