Digital Commons Network^™

Corporations - Ultra Vires Act - Effectiveness Of Action By Informal Meeting Of Board Of Directors, Guy Maxfield

Michigan Law Review

Defendant insurance company issued a policy on the life of the president of plaintiff corporation with the corporation named as beneficiary. The president, his wife in the capacity of secretary-treasurer, and son were the sole stockholders of the corporation. Pursuant to a divorce agreement between the president and his wife, a part of the insurance policy was assigned to the wife at an informal board of directors' meeting with the concurrence of the wife and son. The president died and his stock was sold to the present stockholders. The corporation then sued the insurance company to collect the full amount …

Taxation - Federal Income Tax Deductibility Of Interest On Debentures Issues As A Dividend, Jules M. Perlberg

Michigan Law Review

Taxpayer, a wholly-owned subsidiary corporation, had filed consolidated returns with its parent prior to 1934. When Congress abolished consolidated returns in that year, the subsidiary issued 6% debentures as a dividend to the parent company and subsequently deducted the interest paid on these bonds. The Commissioner claimed the interest payments were really dividends and were not deductible. The Tax Court upheld the Commissioner pointing out the tax-saving motive, absence of new investment, and parent-subsidiary relationship as factors indicating that no genuine debtor-creditor relationship existed. On appeal, held, reversed. The debentures involved were conventional in form and created a valid …

Wills - Execution - Attestation, Max H. Bergman

Michigan Law Review

Prospective witnesses to a will saw the testatrix standing in an adjoining room engaged in writing. Soon thereafter, the testatrix asked them to come in and sign a paper. Her name had already been written on the document, and she neither signed it in the witnesses' presence nor in any manner indicated the writing to be her will. The witnesses read enough of the document, however, to know it was a will, before subscribing it in the presence of the testatrix and one another. Three of the testatrix' sons objected to the probate of the will on the ground that …

Periodical Index, Michigan Law Review

Michigan Law Review

This index includes articles, comments and some of the longer notes which have appeared in leading law reviews since the publication of the last issue of this Review.

Workmen's Compensation - Requirement Of Causal Connection Between Employment And Injury, Thomas S. Erickson S.Ed.

Michigan Law Review

Plaintiff-employee was compensated for injuries received when she slipped on a patch of ice and fell on defendant-employer's premises while going from her work to eat lunch in defendant's cafeteria. On appeal, held, reversed. At the time of the injury plaintiff was not rendering any service to her employer. There was no causal connection between employment and injury, and the injury did not arise out of and in the course of her employment as required by statute. Mack v. Reo Motors, Inc., 345 Mich. 268, 76 N.W. (2d) 35 (1956).

Garcia-Mora: International Law And Asylum As A Human Right, Alona E. Evans

Michigan Law Review

A Review of International Law and Asylum as a Human Right. By Manuel R. Garcia-Mora.

Chafee, Jr.: The Blessings Of Liberty, Nathaniel Nathanson

Michigan Law Review

A Review of The Blessings of Liberty. By Zechariah Chafee, Jr.

Constitutional Law - Due Process - Notice Required To Validate Tax Foreclosure Of Property Of Known Mental Incompetent, Frank M. Lacey S.Ed.

Michigan Law Review

On May 8, 1952, the town of Somers instituted an action to foreclose a number of tax liens. One of these was upon the property owned by a person known in the community to be a mental incompetent, but who had not yet been so certified by a court. Notice was given to the incompetent taxpayer in compliance with the statute by mail, posting, and publication. When she failed to answer within the prescribed period, foreclosure was entered and a deed to her property delivered to the town. Five days later she was declared a person of unsound mind, and …

Periodical Index, Michigan Law Review

Michigan Law Review

This index includes articles, comments and some of the longer notes which have appeared in leading law reviews since the publication of the last issue of this Review.

Dispositions Of Property To Unincorporated Non-Profit Associations, Harold A.J. Ford

Michigan Law Review

It now becomes necessary to examine the cases in which the disposition could not be treated as one to the existing members. This treatment will disclose that some courts have been prepared to regard some dispositions to associations as being for the purposes of the association. The only way in which property may be devoted to a purpose without conferring beneficial interests on particular individuals is by a trust. Accordingly in many instances the disposition takes effect as a trust.

Compelling The Testimony Of Political Deviants, O. John Rogge

Michigan Law Review

At the last term the United States Supreme Court in Ullmann v. United States upheld the constitutionality of paragraph (c) of a federal act of August 1954 which seeks to compel the testimony of communists and other political deviants. Paragraph (c) relates to witnesses before federal courts and grand juries. The Court specifically left open the question of the validity of paragraphs (a) and (b) relating to congressional witnesses. Justice Frankfurter delivered the Court's opinion. Justice Douglas, with the concurrence of Justice Black, wrote a dissent.

It is our purpose to consider the background, history and terms of this compulsory …

Corporations - Securities Regulation - Material Misstatements Of Omissions Of Fact Under The Securities Act Of 1933, Eric E. Bergsten S.Ed.

Michigan Law Review

Plaintiff sued for rescission of his purchase of stock in a corporation under section 12 (2) of the Securities Act of 1933 (hereafter referred to as the act) alleging a material misleading statement of fact in the prospectus. The alleged misstatement was that defendant was an "underwriter (as defined pursuant to the Securities Act of 1933 as amended)." No further explanation of defendant's status and consequent obligation was made in the prospectus. Defendant had agreed in fact to be only a "best efforts" underwriter. The trial court found that the statement was misleading and material. On appeal, held, affirmed. …

Constitutional Law - Eminent Domain - Condemnation Of Riparian Lands Under The Commerce Power, George F. Lynch S.Ed.

Michigan Law Review

The power of the United States to regulate commerce comprehends a right to control navigation and the means of navigation. To the extent necessary for the enjoyment of this power the government may condemn riparian property. The federal power of eminent domain is limited by the mandate of the Fifth Amendment which requires just compensation for private property taken for a public use. Usually, the standard of just compensation is the market value of the property, taking into consideration the most profitable uses for which the property is suited and likely to be used at the time of the taking, …

Negligence - Breach Of Duty - Assured Clear Distance Ahead Doctrine, Herbert A. Bernhard

Michigan Law Review

Plaintiff, while driving an automobile through a tunnel, collided with defendant's truck, which was stopped without lights. The Pennsylvania Vehicle Code requires an operator to drive at such a speed as will enable him to stop within the "assured clear distance ahead." Plaintiff alleged he was temporarily blinded by the sudden change from bright sunlight to the darkness of the tunnel. The jury found for plaintiff, but defendant's motion for judgment n. o. v. was granted. On appeal, held, affirmed, one justice dissenting. Plaintiff's failure to stop his automobile within the assured clear distance ahead constituted contributory negligence as …

Constitutional Law - Privilege Against Self-Incrimination -Effect Of Immunity Statute, Paul A. Heinen S.Ed.

Michigan Law Review

Petitioner was brought before a federal grand jury and questioned as to his and other persons' membership in the Communist Party. After petitioner refused to answer the questions on the ground that the answers would be self-incriminating and therefore his refusal was privileged under the Fifth Amendment, the United States attorney, proceeding under the provisions of the Immunity Act of 1954, filed an application in the United States district court requesting that petitioner be required to answer the questions. The district court, upholding the constitutionality of the act, ordered petitioner to answer the questions, and petitioner's appeal from this order …

Taxation - Federal Income Tax - Secret Withdrawals Of Corporate Receipts By Stockholders As Income In Absence Of Surplus, Kenneth H. Haynie S.Ed.

Michigan Law Review

As sole stockholder of the Robbins Tire and Rubber Company, the defendant managed and controlled the affairs of the corporation. Over a period of years he intercepted the company's receipts from several of its large customers and diverted them to his own use. No entries of such receipts were made on the books of the company, nor was any tax paid on them. Defendant was convicted for attempted evasion of his personal income tax on these funds. On appeal, held, affirmed. Taxation is concerned with actual command over property: If does not matter whether defendant got the funds as …

Recent Books, Michigan Law Review

Michigan Law Review

A List of Books Received by Michigan Law Review

Constitutional Law - Grand Jury Under The Fifth Amendment Indictments Not Subject To Attack On Evidentiary Ground, Jerome K. Walsh, Jr. S.Ed.

Michigan Law Review

Defendant was indicted by a grand jury on four counts of willfully evading federal income taxes due for the years 1946, 1947, 1948 and 1949. His motion before trial to dismiss the indictment on the ground that he was firmly convinced that there could have been no legal or competent evidence before the grand jury was denied by the trial court. At the conclusion of the government's case, and again just before the case went to the jury, counsel for the defendant moved to dismiss the indictment on the ground that only hearsay evidence offered by three revenue agents had …

Estoppel And Crown Privilege In English Administrative Law, Bernard Schwartz

Michigan Law Review

Perhaps the most anachronistic doctrine in Anglo-American public law is that of sovereign immunity. Under it, the State is placed in a privileged position of immunity from the principles of law which are binding upon the ordinary citizen, unless it expressly consents to be bound by such principles. In Anglo-American law the infallibility attributed to the King in the days when he was personally sovereign has been more recently recognized in the State, which the Crown now merely personifies. Thus, even today, and even in the American democracy, the basic principle of public law is that the King can do …

Periodical Index, Michigan Law Review

Michigan Law Review

This index includes articles, comments and some of the longer notes which have appeared in leading law reviews since the publication of the last issue of this Review.

Dispositions Of Property To Unincorporated Non-Profit Associations, Harold A.J. Ford

Michigan Law Review

The aim of this article is to examine the ways in which courts in common law countries have given this assistance and the problems they have encountered in regard to property transactions.

Transfers Of Joint Property In Contemplation Of Death: A Call For Immediate Statutory Revision, L. Hart Wright

Michigan Law Review

For years the Tax Court sided with the government and the Court of Appeals for the Third Circuit in asserting that the contemplation-of-death provision of the estate tax act was sufficiently elastic to include the tax concept of ownership reflected in the joint-property provision of the same act. The alliance between those tribunals on this point was recently broken, however, when the Tax Court shifted to the competing view supported by taxpayers and the appellate court for the Ninth Circuit. It now believes that the two provisions mentioned above are complete strangers even though at one time these two were …

Constitutional Law - Courts-Martial - Power Of Congress To Provide For Military Jurisdiction Over Civilians, Whitmore Gray S.Ed.

Michigan Law Review

During the past term the Supreme Court decided three cases involving the constitutionality of court-martial jurisdiction over certain groups of civilians. In United States ex rel. Toth v. Quarles the Court held that Congress could not constitutionally provide for military trial of a discharged serviceman for offenses committed during his term of service. In two subsequent cases the Court rejected the contention that the Toth decision announced a principle applicable to any exercise of jurisdiction over civilians by the military courts in upholding the provisions of the Uniform Code of Military Justice for military jurisdiction over civilian dependents accompanying American …

Regulation Of Business - Sherman Act - Administration And Enforcement - A Re-Analysis Of Consent Decrees, Paul R. Haerle S.Ed.

Michigan Law Review

This comment will deal with a review of the history, nature, and use of the consent decree, an analysis of some of the more recent and important decrees, and a discussion of the crucial problem, raised especially by the Report of the Attorney General's National Committee to Study the Antitrust Laws, of the constitutional and statutory bases (or lack thereof) for the relief granted by consent decrees.

Corporations - Statutes Providing For Both Cumulative Voting And Classified Boards, David W. Swanson S.Ed.

Michigan Law Review

The shareholders of the Winous Company amended the articles of incorporation to provide for staggered elections whereby one of the three directors would be elected each year to serve a three-year term. The Ohio Code provides for classified boards, and contains a guarantee of the right to vote cumulatively which is not to be restricted by the articles of incorporation. The county court of appeals reversed the court of common pleas and held the amendment invalid because it nullified the right to vote cumulatively. They interpreted the cumulative voting provision as specific and therefore a limitation on the more general …

Constitutional Law - Criminal Law - Power Of Federal Government To Commit Mentally Incompetent Persons Charged With Federal Crimes, William C. Becker S.Ed.

Michigan Law Review

Petitioner was indicted for robbery from a United States Post Office. After a series of hearings and examinations, the district court found petitioner so mentally incompetent that he could not stand trial, and that, if released, he would probably endanger the safety of the officers, property, or other interests of the United States. The district court ordered petitioner committed to the custody of the Attorney General for confinement in a mental institution. This order was affirmed by the Court of Appeals for the Eighth Circuit, one judge dissenting. On certiorari to the Supreme Court of the United States, held, …

Constitutional Law - Freedom Of Religion - Fluoridation Of City Water, John M. Webb S.Ed.

Michigan Law Review

In its proprietary capacity the City of Bend maintains and operates a water system with the exclusive right to supply water to its inhabitants. In February 1952 the mayor and city commissioners adopted an ordinance providing for the introduction of fluorine into the water supply to reduce dental caries in the teeth of young children. The plaintiff as a resident and taxpayer brought suit to enjoin such action. A demurrer to his complaint was sustained. On appeal, held, affirmed. A city, in the exercise of its police power, may enact reasonable regulations for the protection of the public health, …

Negligence - Duty Of Care - Duration Of Status Of "Driver" For Puropses Of Guest Statute, George Kircos

Michigan Law Review

Plaintiffs were guests riding in defendant's automobile. Defendant stepped out of the vehicle leaving the motor running, the hand brake unset, and the automatic shift in neutral position. A departing passenger brushed against the gear lever and started the vehicle which struck a wall causing injuries to the plaintiffs. On appeal from judgment adverse to the plaintiffs, held, reversed. Defendant may be held liable for ordinary negligence. California's "guest" statute limiting guests to recovery for injuries sustained by the driver's willful misconduct does not apply in this case, since the defendant ceased to be a driver the moment he …

Recent Books, Michigan Law Review

Michigan Law Review

A List of Books Received by Michigan Law Review

The Fourteenth Amendment Reconsidered, The Segregation Question, Alfred H. Kelly

Michigan Law Review

Some sixty years ago in Plessy v. Ferguson the Supreme Court of the United States adopted the now celebrated "separate but equal" doctrine as a constitutional guidepost for state segregation statutes. Justice Brown's opinion declared that state statutes imposing racial segregation did not violate the Fourteenth Amendment, provided only that the statute in question guaranteed equal facilities for the two races. Brown's argument rested on a historical theory of the intent, although he offered no evidence to support it. "The object of the amendment," he said, "was undoubtedly to enforce the absolute equality of the two races before the law, …