Digital Commons Network^™

Negligence-Liability Of Hospital For Suicide Of Patient, Richard Darger

Michigan Law Review

Decedent, a patient in the advanced stages of labor awaiting transfer from the labor room to the delivery room of defendant hospital, opened a window, unhooked the screen and jumped or fell to her death below. It was assumed by the court that death was caused by intrapartum psychosis, a condition which plaintiff claimed was recognized by the medical profession as a hazard of childbirth. Decedent had exhibited no unusual symptoms and had previously been through two normal pregnancies. The jury was allowed to find defendant negligent in not providing for constant attendance and in failing to bar the window …

Taxation-Immunity Of Federal Bonds To State Taxation, Lenamyra Saulson

Michigan Law Review

A New Jersey statute imposed a tax on domestic stock insurance corporations on the value of intangible property exclusive of tax-exempt property but required an assessment against all intangible property of not less than fifteen per cent of capital and surplus in excess of liabilities. In conformity with this statute, a tax was imposed on the appellant, a domestic stock insurance corporation, of fifteen per cent of the entire net worth, without deduction of the principal amount of tax-exempt United States bonds and accrued interest thereon. The appellant appealed to the United States Supreme Court on the ground that the …

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

This department lists the articles and comments which appear in leading law reviews. The index embraces material published since the last issue of this REVIEW.

Jurisdiction-Diversity Of Citizenship-Corporations Domiciled In More Than One State, Harold G. Christensen

Michigan Law Review

Plaintiff brought action against defendant railroad in the federal district court for New Jersey district alleging that she was a citizen of New Jersey and that defendant was a corporation and citizen of New York. Defendant moved to dismiss for lack of diversity of citizenship alleging that it was a consolidated corporation of New York and New Jersey. Held, action dismissed. Since corporate existence was dependent upon both states, and plaintiff was also a citizen of one, diversity did not appear. Gavin v. Hudson & Manhattan R. Co., (D.C. N.J.1950) 90 F. Supp. 172.

Realization Of Income Through Cancellations, Modifications, And Bargain Purchases Of Indebtedness: I, L. Hart Wright

Michigan Law Review

Treasury regulations bearing on the tax consequence of a cancellation, modification, or bargain purchase of one's outstanding indebtedness date back to those issued in connection with the Revenue Act of 1918. Thirteen years elapsed after their issuance before the Supreme Court in 1931 finally approved, at least with respect to the bargain purchase with which it was concerned, the principal which the regulations incorporated, namely, that the savings effected by such debtors could, as a constitutional as well as a statutory matter, involve the realization of taxable income. Competing interpretations of that decision, the government insisting on a sweeping application …

Military Habeas Corpus: I, Seymour W. Wurfel

Michigan Law Review

The mobilization of over twelve million persons into the armed forces in World War II made necessary a vastly expanded resort to court martial proceedings to enforce the criminal law. The trial by military tribunals of civilian employees of the military establishment in overseas areas and of prisoners of war and war crimes defendants added substantially to the number confined by military authority. On January 31, 1950, there remained in federal penal institutions 2508 prisoners serving civilian type felony sentences imposed by military tribunals. Before World War II, legal problems arising from attempts to invoke the remedy of habeas corpus …

Gifts For The Benefit Of Minors, Austin Fleming

Michigan Law Review

Primarily because of tax incentives, lifetime gifts have become increasingly popular in recent years among persons of wealth. Until the Revenue Act of 1948, such gifts were frequently made between spouses. But the tax advantages of interspousal gifts were greatly lessened by the split-income privilege and the marital deduction, and a new inducement was given to gifts to third persons by the establishment of the right to treat such gifts as being one half from each spouse. As a result, gifts to children and grandchildren have taken on new prominence.

Alterations Of Accrued Dividends: Ii, Arno C. Becht

Michigan Law Review

If the present course of decisions is continued, it is a serious question whether investors can safely purchase preferred stock at a price above the common stock of the same corporation. In all frankness, such certificates should now bear on their faces a statement that they are subject to alteration in a great variety of ways, all to their detriment, and that if business is bad, losses will be visited upon them, regardless of the liquidation and other preferences which they have on paper. It seems not unlikely that corporations will find that the temporary expedients which they have adopted …

Citizenship-Intent Required For Expatriation, Willis B. Snell S. Ed.

Michigan Law Review

In recent years, many cases have involved the question whether an American citizen has expatriated himself by his actions. Expatriation in the United States is now covered by statute, but the courts, in construing these statutes, have faced a recurrent problem as to what intent on the part of the citizen is required to effect expatriation. To interpret the present doctrine, it is necessary to examine the history of expatriation, the statutes, and the various situations in which the question of intent has arisen.

Corporations--Corporate Policy, The "Cure-All" For Proxy Solicitation Ailments, David M. Michaelson S. Ed.

Michigan Law Review

All too often lawyers and students of law are inclined to assume that some principle or formula· has become so deeply rooted in the law that it has acquired a sanctity which gives it an all-embracive effect, a "cure-all," as it were, for legal ailments. This has been the usual approach when the question has arisen of the propriety of spending corporate funds to solicit proxies. The ever-faithful panacea has been to say, quite automatically, that where the intra-corporate contest is concerned with matters of policy as distinguished from personnel of management, then corporate funds may be used to inform …

Habeas Corpus-Exhaustion Of State Remedies-Denial Of Certiorari By Supreme Court As Condition To Obtaining Original Writ In Federal District Court, B. J. George, Jr. S. Ed.

Michigan Law Review

The expanded concept of due process of law under the Fourteenth Amendment during the past thirty years has brought increased inquiry by the federal courts into state criminal procedure. A common method of bringing such matters to the Supreme Court's attention has been the use of habeas corpus, particularly following confinement. But this increased vigilance over state criminal procedure has wrought an increasingly tender conscience on the part of the federal courts over resulting interference with state court systems. The theoretical problem has been further amplified on the practical level by the flood of petitions, largely frivolous or perjured, by …

Constitutional Law-Power Of State To Discriminate Against Federal Government By Testamentary Transfer Statute, Gordon W. Hueschen

Michigan Law Review

Decedent, domiciled in California, made a testamentary gift to the United States. By an interpretation of the state probate code, the California Supreme Court held the gift invalid and directed distribution to decedent's heirs. The United States asserted unconstitutional interference with the federal government's power to receive gifts. On appeal to the United States Supreme Court, held, affirmed. The California Probate Code did not violate the supremacy clause of the Constitution, and no unconstitutional discrimination was effected against the federal government thereby, even though the statute allows testamentary gifts by state domiciliaries to the state and prohibits testamentary gifts …

International Law-Status Of Germany-Nationality Laws-Voting In German Election As Forfeiture Of United States Citizenship, Jean Engstrom S. Ed.

Michigan Law Review

Petitioner, an American citizen living in Germany, voted in the January 27, 1946 election of local officials in Rodach, Germany, American Zone of Occupation, held under the direction and with the approval of the Office of Military Government for Bavaria. Petitioner was issued a certificate of loss of nationality, based on section 801(e) of the Nationality Act of 1940, which provides that American nationality is lost through "voting in a political election in a foreign state." Held, petitioner had not lost her citizenship. The Rodach election was held in "territory then ruled and governed by the United States and …

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

This department lists the articles and comments which appear in leading law reviews. The index embraces material published since the last issue of this REVIEW.

Venue Statutes: Diagnosis And Proposed Cure, George Neff Stevens

Michigan Law Review

Modern procedural reform movements have swept by the problems of venue with but little notice. This is unfortunate, for all too many cases are decided on a venue technicality, with complete disregard for the merits. Present day venue procedures are the result of historical developments and piecemeal legislative tinkering. The time has come for an appraisal and for corrective action.

Part I of this paper contains a comparative and critical study of venue statutes in the United States today. Part II points out how and why certain of these provisions have given rise to serious problems and suggests a few …

Taxation-The Lincoln Electric Question: Must "Ordinary And Necessary" Business Expenses Be Also "Reasonable" In Amount, R. Lawrence Storms S. Ed.

Michigan Law Review

The United States Court of Appeals for the Sixth Circuit has recently determined in Commissioner v. Lincoln Electric Co. that the element of reasonableness is inherent in the phrase "ordinary and necessary" as used in the paragraph of the Internal Revenue Code authorizing deductions for business expenses. It will be of interest to develop the history of the case throughout its ten years of litigation, to examine some of the collateral points raised, and to attempt a critique of the merits of the court's position.

Administrative Law-Federal Trade Commission-Constitutional And Statutory Authority To Order Additional Compliance Reports, Charles Myneder S. Ed.

Michigan Law Review

Proceeding under section 5 of its organic act, the Federal Trade Commission issued an order requiring defendants to cease and desist from engaging in certain trade practices. The court of appeals, in its decree affirming the order, directed compliance reports to be filed with the commission within a specified time, reserving jurisdiction to enter further orders. Four years after the compliance reports were filed, the commission, on its own motion, ordered additional reports to show continued compliance. Defendants refused to report, challenging the authority of the commission to issue the order. The district court dismissed suit by the commission for …

Tax Statutes-The Role Of Stare Decisis In Determining "Legislative Intent", Paul E. Anderson S. Ed.

Michigan Law Review

An interesting case history recently unfolded by the Supreme Court reveals a novel application of stare decisis to decisions which interpret an act of Congress. The peregrinations of the Court have caused Congress to intervene on two occasions to settle the questions opened by the Court-although on the second occurrence the Court construed the act precisely as had Congress when it decried the Court's first interpretation. This imbroglio issued from the Revenue Act of 1918 under which Congress provided that transfers "intended to take effect in possession or enjoyment at or after his death" should be included in the donor's …

Alterations Of Accrued Dividends: I, Arno C. Becht

Michigan Law Review

When a preferred stock has cumulative dividends and the dividend period passes without payment, the dividend is said to "accrue." The meaning of the term "accrued" has been the subject of much inquiry. Since a stockholder cannot sue for an accrued dividend for the same reasons that he cannot sue for any other undeclared dividend, the term clearly does not mean what it does in the law of debt, i.e., that a cause of action has arisen. It means only that no dividend can be paid on the common stock until that dividend has been paid on the preferred stock. …

Agency-Election To Sue Undisclosed Principal Or Agent, Alan C. Boyd S. Ed.

Michigan Law Review

Plaintiff brought action against a principal and his agent to foreclose a mechanic's lien on the principal's real property, alleging that he had expended labor and materials in the improvement of the principal's land pursuant to a contract between himself and the agent. Though plaintiff joined the agent as a party defendant, he did not pray for relief against him. Both defendants moved to dismiss the action. Held, action dismissed as to the agent. Whether or not the principal was disclosed at the time the contract arose, the action was properly dismissed as against the agent. If the principal …

Insurance-Consummation Of The Contract-Delivery Of The Policy, John J. Gaskell S. Ed.

Michigan Law Review

An application for life insurance was accepted, and a policy issued, mailed to, and received by the agent of the insurer. The application provided that the policy would not take effect until "manual" delivery thereof. The agent made several unsuccessful attempts to deliver the policy, but before any physical transmission of the policy, the insured died. The beneficiaries sued to recover the amount of the policy. The trial court gave judgment for the defendant insurance company. On appeal, held, affirmed. Manual delivery was a valid condition precedent. There having been no manual transmission to the insured, and the plaintiffs …

Workmen's Compensation-Injury In Fight As Arising Out Of And In The Course Of The Employment, Philip G. Meengs

Michigan Law Review

Deceased was employed by defendant as an engineer and, while waiting to relieve the engineer then on duty, began to quarrel with him as to the manner in which a subordinate was doing his work. Words led to blows, and after a short fight, deceased collapsed and died of emotional trauma of the heart. There were no other witnesses, but the survivor claimed deceased struck the first blow. From an award given by the Workmen's Compensation Board, defendant and its insurer appealed. Held, affirmed. The death arose "out of and in the course of the employment." Commissioner of Taxation …

Notes, Michigan Law Review

Michigan Law Review

The information given in the notes is derived from inspection of the books, publisher's literature, and the ordinary library sources.

Torts-Liability For Misrepresentation Made With Honest Belief In Its Truth, C. E. Lombardi, Jr.

Michigan Law Review

Defendant, a liquor broker, was authorized to make contracts for a liquor wholesaler. He represented to plaintiff that the wholesaler had sufficient liquor immediately available to supply plaintiff with an "unlimited amount," and that he had investigated the company and it was "financially all right." Defendant honestly believed his representations to be true. Relying on the representations, plaintiff placed a large order with the wholesaler and paid a deposit which he lost when the wholesaler went bankrupt shortly thereafter. Plaintiff sued for damages. On appeal from judgment for plaintiff, held, affirmed. Petition for rehearing denied. Stein v. Treger, …

Constitutional Law-Search And Seizure -Inspection Of Private Dwelling By Health Officer Without A Warrant, Robert P. Griffin S. Ed.

Michigan Law Review

A health officer sought to enter and inspect respondent's private home without a search warrant after a neighbor complained that the premises were not "clean and wholesome" as required by a District of Columbia ordinance. Respondent denied the officer permission to enter and refused to unlock the door, maintaining that his entry would violate her constitutional rights. As a result, respondent was convicted in municipal court of violating an ordinance making it a misdemeanor to interfere with or prevent an authorized sanitation inspection. On appeal, reversal of the conviction by the Municipal Court of Appeals was affirmed by the Court …

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

This department lists the articles and comments which appear in leading law reviews. The index embraces material published since the last issue of this REVIEW.

Constitutional Law-Equal Protection Clause-County Unit Vote, Charles Myneder S.Ed.

Michigan Law Review

Plaintiffs brought an action against defendants, Chairman of the Georgia State Democratic Executive Committee and others, to restrain adherence to a state statute providing that the County Unit Vote shall determine the outcome of a primary election. Under the statute each county is alloted a number of unit votes. The candidate receiving the highest popular vote in the county is awarded the unit votes of that county. Plaintiffs, residents of the most populous county in the state, alleged that their votes had on an average but one-tenth the weight of those in the other counties in the state. From a …

Corporations-Measure Of Short Swing Profits Under Section 16(B) Of The Securities Exchange Act Of 1934, G. B. Myers S.Ed.

Michigan Law Review

Plaintiff, a stockholder in X corporation, sued in the name of and on behalf of the corporation to recover short swing profits made by defendants in the sale of stock purchase warrants of the corporation, in violation of the Securities Exchange Act. Defendants were officers of the corporation and as part of the consideration for entering into their contracts of employment they received each year a number of these warrants. Within six months of the receipt of their 1945 warrants defendants had made certain sales of warrants then held by them. The court, in a previous ruling, had granted a …

Constitutional Limitations On The Regulation Of Union And Employer Conduct, Charles O. Gregory

Michigan Law Review

This is a discussion of constitutional issues involved in federal and state regulations pertaining to labor. The importance of substantive due process has dwindled away, except in relation to picketing and Jim Crow unionism. The dominant issue has become the exercise of power, in a jurisdictional sense, to eliminate socially injurious practices. During the past half century the Supreme Court has taken almost all possible positions on these matters. Pursuing the ideal of a living document, the Court has retailored the Constitution to suit the political exigencies and the dominant interest pressures of any given time.

Basic Criteria For Distinguishing Revenue Charges From Capital Expenditures In Income Tax Computations, Abe L. Shugerman

Michigan Law Review

In the sections that follow, every effort has been made to deduce the motivating philosophy behind the judicial decisions that have been rendered on this question. Courts, themselves, have never paused to prescribe any detailed criteria to be applied, but an examination of the opinions has revealed that consciously or unconsciously the courts have been moved by such basic criteria. Even though such criteria may not have been precisely designated, they have been present, they have been utilized, and interestingly enough, the courts have been amazingly consistent in their applications of these criteria.