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The Powers Of A Court Of Equity In State Tax Litigation, Maurice S. Culp

Michigan Law Review

Hitherto a state taxpayer, otherwise meeting the jurisdictional requirements of a federal district court, could secure an injunction from such a court upon a showing that there was no adequate remedy at law in the federal district court, and this regardless of the legal or equitable remedies afforded by the state courts.

In view of this recent legislation, it becomes important to ascertain the new limitation upon the equity powers of the federal district courts in state tax litigation. Likewise, because of these new rigid limitations upon the jurisdiction of the federal courts, the attitude of the state courts of …

Corporations - Receivers - Rights Of Creditors Or Receiver To Raise An Objection To Corporate Action Which Would Be Open To Shareholders, Jerome J. Dick

Michigan Law Review

The writer will attempt to show that the courts, in spite of their language of fraud and breach of trust, are not applying the legal rules of fraud and trust relationship in allowing recovery to the creditor. The cases brought by the receiver for the benefit of creditors can be roughly divided into three broad groups: (1) instances where the court speaks of a trust relationship, holding that the corporation has breached the duty of trust to the creditors; (2) situations where the court speaks of some hazy principle of "fraud" on the creditors; (3) cases where the court forgets …

Libel And Slander - Privilege - Liability Of A Telegraph Company For Transmtiting A Libelous Message, Michigan Law Review

Michigan Law Review

Defendant telegraph company transmitted to ten officers of an international union a telegram from members of a local union. The contents related to labor affairs and were admittedly libelous per se as to the plaintiff, naming him as "responsible for the murder of our brother officer Borson." Held, verdict for plaintiff set aside and new trial ordered, because plaintiff has failed to justify recovery by furnishing evidence of actual malice or bad faith by the defendant. Klein v. Western Union Tel Co., 257 App. Div. 336, 13 N. Y. S. (2d) 441 (1939), appeal withdrawn, (N. Y. 1939) …

Inconsistencies In Public Utility Depreciation: Deduction Of Depreciation For Rate Base Purposes, Robert D. Haun

Michigan Law Review

When considering depreciation for rate base purposes the courts and the commissions speak of accrued depreciation, existing depreciation, actual depreciation, complete depreciation, realized depreciation, incomplete depreciation, and observed depreciation. Accrued, existing and actual depreciation all have the same meaning.

Some Problems In The Enforcement Of The Antitrust Laws, Wendell Berge

Michigan Law Review

There has been much discussion through the years about the evils of monopoly, monopolistic practices, and unreasonable restraints of trade. We have always paid lip service to the ideal of free competition. But we have done little in this country to cope with these evils. We have done little to make our competitive ideal effective.

Taxation - Federal Gift Tax - Cancellation Of A Power Todesignate New Beneficiaries Other Than The Settlor - Interrelationship Of Gift And Estate Tax, Robert M. Warren

Michigan Law Review

Before the enactment of the 1924 gift tax statute, decedent created a trust for the benefit of named beneficiaries, reserving to himself power both to revoke and to modify the trust. In 1919 the decedent made a surrender of the power to revoke the trust by a writing which reserved the power to designate new beneficiaries other than himself. This latter power was renounced in 1924 after the effective date of the gift tax statute. The Board of Tax Appeals and the Circuit Court of Appeals for the Third Circuit affirmed the commissioner's ruling that the gift became complete and …

Deeds - Construction - Executory Interests - Destructibility Rule, Michigan Law Review

Michigan Law Review

In 1883, the grantor conveyed by warranty deed to A for life, remainder to the heirs of B. A died in 1931; B died in 1935, leaving two children and one grandchild as his heirs-at-law. Claiming an undivided one-third through the grandchild, plaintiff started partition proceedings against B's children. Held, that the intent of the grantor must control, and he did not intend to create a contingent remainder in the heirs of B. The deed was a bargain and sale, adapted to a conveyance to uses. On the death of the life tenant, the fee was …

Notes On Practice Before The Federal Communications Commission, Herbert M. Bingham

Michigan Law Review

It is the purpose of this paper to discuss the broadcast license practice and procedure before the Federal Communications Commission as it exists today. No attempt at criticism or suggestions for reform will be made.

Zoning - Municipal Corporations - Due Process - Restrictions On Power To Change Zoning Plan Previously Adopted, Edmund R. Blaske

Michigan Law Review

The plaintiff owned several lots in a subdivision which the defendant city changed from a class "B" residence district to a class "C" residence district. In an action for a declaratory judgment the plaintiff asked the court to pronounce the amendment making pie change void. The declaration contained the following allegations: that there was already sufficient undeveloped class "C" property to satisfy present and future building needs; that the change was made at the instance of private persons, for their benefit, and not in the public interest; that the new classification would decrease the value and enjoyment of the plaintiff's …

Circuit Courts And The Nisi Prius System: The Making Of An Appellate Court, William Wirt Blume

Michigan Law Review

Judicial systems organized under the influence of the English tradition have exhibited a tendency to pass through four stages of development. (1) In the first stage the highest court (not taking into consideration legislative bodies) has final appellate jurisdiction and a superior original jurisdiction, civil and criminal. The court is composed of three or more judges who sit in bank for the trial of cases. The judges may sit at a central place or go on circuit throughout the territory. (2) In the second stage the highest court has both original and appellate jurisdiction but does not undertake to try …

Evidence - Constitutional Law - Use Of Statutory Presumptions In Criminal Cases, Edward M. Watson

Michigan Law Review

The recent efforts on the part of state legislatures to increase the effectiveness of their criminal codes has resulted in extending the use of the statutory presumption to new fields of criminal law. The reaction which necessarily follows such an innovation upon traditional practice has appeared in the form of renewed attacks upon the constitutionality of the device, accompanied by the usual expressions of alarm concerning the "threat to liberty" that lurks in the use of this "mechanistic" instrument of "arbitrary oppression."

Appeal And Error - Harmless And Prejudicial Error, Michigan Law Review

Michigan Law Review

In the trial of defendant for embezzlement, the prosecutor's opening address to the jury included a hearsay statement, regarding a tacit admission by defendant, tending to establish his guilt. Subsequently in the trial such hearsay statement was not allowed in evidence and the defendant now claims on appeal from conviction that the opening statement was prejudicial and thus he is entitled to a new trial. Held, that the statute governing reversals by an appellate court for prejudicial errors did not apply; and that a new trial follows as a matter of course because of a deprivation of the constitutional …

Administrative Law - Taxation - Power Of Board To Adopt Rules And Regulations - Inflexibility Of Prior Ruling By Reenactment Of Statute Without Change, William F. Anderson

Michigan Law Review

The respondent oil company in computing its net income for the years 1929-1930 for the purpose of applying the depletion deduction provisions of the Revenue Act of 1928 refused to deduct certain development expenditures, although it had deducted those development expenditures in computing its taxable net income for these years. Under the rule-making power of section 23 (1) of that act, the commissioner defined "net income of the taxpayer" as used in section 114 (b)(3) as meaning gross income from the sale of gas and oil less certain deductions, including development expenses (if the taxpayer had elected to deduct development …

Constitutional Law - Municipal Corporations - Delegation Of Power - Consent Of Adjoining Property Owners - Reasonableness Of Restriction On The Use Of Property., Michigan Law Review

Michigan Law Review

An ordinance of the city of Detroit regulated trailer camps in part by requiring the consent of sixty-five per cent of the adjoining property owners before a permit would issue, and by forbidding the parking of occupied trailers in any camp or camps for more than ninety accumulated days in any twelve-months' period. Plaintiff camp owner sought to restrain enforcement of the restrictions. Held, that as to both the consent and the ninety-day provisions, the ordinance is a valid and reasonable exercise of the police power. Cady v. City of Detroit, 289 Mich. 499, 286 N. W. 805 …

Schools And School Districts - School Elections - Tax Limitations - Bond Issues - Qualifications Of Electors Under Michigan Constitution, John S. Pennell

Michigan Law Review

The plaintiff submitted to the school district electors two propositions: (1) that of increasing the tax limitation from 1.5 per cent to 1.802 per cent of the assessed valuation, and (2) that of bonding the school district in the amount of $182,600 for improvements. Both at the registration of voters, and at the election, the qualifications of the electors were tested by the school code. On the tax limitation question, all registered school electors were permitted to vote. On the question of the bond issue, only those registered electors who owned property assessed for school taxes in the district were …

Book Notes, Michigan Law Review

Michigan Law Review

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

Appeal And Error - Reviewability Of An Order Granting A New Trial, Robert M. Warren

Michigan Law Review

When a trial court sets aside a verdict and grants a new trial, the order may or may not be reviewable depending on the jurisdiction. In some jurisdictions which permit a review, the aggrieved party must save an exception to the order and assign this ruling as error when an appeal is ultimately taken from a subsequent appealable decision. In other jurisdictions, he may take an appeal directly from the order.

This comment will discuss (1) the common-law practice which permitted no review of an order granting a new trial; (2) the practice allowing the aggrieved party to save an …

Trading In Securities By Directors, Officers And Stock.Holders: Section 16 Of The Securities Exchange Act, Kenneth L. Yourd

Michigan Law Review

The prime objective of the Securities Exchange Act is the establishment and maintenance of a free and open market for trading in securities; a free and open market in the sense that the prices obtaining thereon represent an evaluation of worth based upon a full knowledge in all traders of all pertinent facts and circumstances. In an attempt to achieve a realization of the ideal concept of a free and open market, the framers of the Securities Exchange Act have been careful to bring within the purview of the enactment all elements which they believed in any way were reflected …

Inconsistencies In Public Utility Depreciation, Robert D. Haun

Michigan Law Review

Depreciation is a matter of valuation and of the determination of the cost of rendering public service. It is only incidentally related to replacements, and accounting for depreciation will not necessarily provide for replacements. Since depreciation does have to do primarily with valuation and determination of the cost of rendering service, and since capital devoted to public utility use is subject to regulation, it would seem that consistency in principles is not only desirable but attainable. It is the purpose of this article to examine the cases decided by the courts and by the regulatory commissions of the various jurisdictions …

Evidence - Admissibility Of Hospital Records As Business Entries, John S. Pennell

Michigan Law Review

Following the report of the Commonwealth Fund Committee, in which they advocated the adoption of a model act to govern the admission of business entries as evidence, a comparatively small number of states have enacted legislation of this kind, either the model act or an act of similar nature. The extent of this comment is to show: (1) in what states hospital records have been held not to be admissible as business entries, the states where there has been no decision on the subject, and the states where the status of the rule is in doubt; (2) the states where …

Banks And Banking - Duty Of Depositor To Determine Status Of His Account, James D. Ritchie

Michigan Law Review

Plaintiff's bookkeeper, who, as defendant bank admittedly knew, had authority only to indorse and deposit commission checks to plaintiff's account, embezzled considerable money between 1926 and 1931 by taking some of the proceeds in cash or drafts. In the passbook and in defendant's own records only the net transactions, not the total amount of the checks, were recorded. Plaintiff discovered the fraud in 1936 and now sues the receiver five years after the bank closed. Held, that plaintiff, charged with constuctive knowledge of the fraud, which reasonable examination would have revealed, is guilty of negligence and therefore barred from …

Evidence - Criminal Law And Procedure - Admissibility Of Recording Made On Device At Receiving End Of Telephone Conversation, William H. Klein

Michigan Law Review

In a prosecution for conspiracy to violate the narcotic laws, defendant objected to the admission of a recorded telephone conversation between himself and an informer, taken down by the latter on a device attached to the receiver. Defendant contended that this was inadmissible under the rule of Nardone v. United States. Held, the evidence was not intercepted, therefore not within the purview of the Federal Communications Act and, consequently, admissible despite the Nardone decision. United States v. Yee Ping Jong, (D. C. Pa. 1939) 26 F. Supp. 69.

Landlord And Tenant - Assumption Of Risk Of Defective Stairway In Landlord's Control By Employee Of Tenant, John S. Pennell

Michigan Law Review

Plaintiff, employee of a tenant in defendant's building, fell and suffered injuries while using a stairway designed for the use of the tenants and their employees. The stairway was in the control of the landlord, and had long been in a defective condition. It was the only means of ingress and egress. In the plaintiff's action against the landlord the trial court granted a non-suit on the ground that plaintiff had voluntarily assumed the risk of the defective stairway by her use thereof. Plaintiff appealed. Held, the question whether the plaintiff had voluntarily assumed the risk is a question …

Practice And Procedure - General Verdict On Several Counts - Is New Trial Necessary When One Of Two Counts Is Unsupported By Evidence?, Edmund R. Blaske

Michigan Law Review

Plaintiff sued defendant to recover damages arising from personal injuries claimed to have been suffered by him while in the employ of defendant, who was not under the workmen's compensation statute. In the first count of his declaration plaintiff claimed that defendant did not furnish him a safe place in which to work, and in the second count that defendant set him at work on dangerous materials. The jury returned a verdict of "guilty on both counts" and assessed "total damages" at $998.71. The trial court, on a motion for judgment notwithstanding the verdict, ruled that as a matter of …

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

This department lists the articles and comments which appear in twenty-five leading law reviews.

Constitutional Law - Fourteenth Amendment - Privileges And Immunities Clause - Civil Liberties - The Hague Case, John N. Seaman

Michigan Law Review

The decisions of the United States Supreme Court in recent years, interpreting the first section of the Fourteenth Amendment, have manifested two striking changes in trend. The first is towards less judicial restraint on governmental regulation of business; that is, towards tolerance of diminished "business liberty." The other is towards greater judicial restraint on governmental interference with individual liberty, commonly called civil liberty. A recent case/ which upheld freedom of speech and assembly and invalidated a city ordinance requiring the obtaining of a permit as prerequisite to a public meeting, not only illustrates the latter of these trends, but is …

A Generation Of Law Teaching, Roscoe Pound

Michigan Law Review

Thirty-six years ago (September, 1903) as Dean Bates was taking up law teaching as Tappan Professor of Law at Michigan, I was delivering an inaugural lecture as Dean of the Law School of the University of Nebraska. In this generation of law teaching we have seen the academic law school rise to a commanding position in professional education, the law teacher gain a position among the leaders of the profession, the growth of co-operation between bar associations and the association of law teachers, the development of co-operation between bar examiners and the law schools, and general adoption by the profession …

Retroactive Application Of Law-A Problem In Constitutional Law, Edward S. Stimson

Michigan Law Review

May an overruling decision be applied to ascertain the legal effect of prior conduct? In cases arising under the diversity of citizenship jurisdiction, the United States Supreme Court has held that the federal courts should apply earlier state court decisions, and not a decision overruling them, whenever the retroactive application of the new rule would adversely affect a party who had changed his position in reliance on the decisions overruled. In the absence of such reliance and change of position it has sustained the retroactive application of a new rule. If the basis of the first principle is elemental fairness …

Public Utilities - Rate Regulation - Validity Of Temporary Rate Order, Thomas K. Fisher

Michigan Law Review

Of interest to students of public utility rate regulation will be the case of Driscoll v. Edison Light & Power Co. in which the United States Supreme Court side-stepped a reconsideration of the fair value rule as announced in Smyth v. Ames, and a determination of the constitutionality of temporary rates based on the prudent investment theory.

Labor Law - National Labor Relations Act - Employee Misconduct As Barring Relief, John C. Griffin

Michigan Law Review

The problem to be considered in this comment is the extent to which employees will, as a consequence of wrongful action on their part, be denied benefits secured to them by the National Labor Relations Act. Inherently, the discussion must also include the examination of another fundamental issue; viz., what is the proper relation between the National Labor Relations Board and the courts on this problem? The substantive question may arise either where the employer seeks to justify a discharge of the worker because of alleged misconduct, or where the misconduct is sought to be used as an estoppel against …