Digital Commons Network^™

Constitutional Law - Power Of State Legislature To Provide For Jury Trial In Proceedings For Contempt Of Court

Michigan Law Review

The defendants, an independent union, and members thereof, were cited for contempt before a court of common pleas for the violation of an in junction restraining them from interfering with the operation of the plaintiff's mines. The alleged contumacious acts took place some ten miles from the court house and consisted of gathering about automobiles containing employees of the plaintiff company, throwing stones at them, breaking windows of the cars, and injuring some of the occupants. The contempt proceedings arose on petition of the company and were before the same judge who granted the injunction. The defendants claimed that under …

Constitutional Law - State Police Power - Regulation Of Advertising By Dentist

Michigan Law Review

Plaintiff, a practicing dentist, brought an action to enjoin the enforcement of a section of Oregon legislation regulating the practice of dentistry, which defined certain types of advertising and solicitation as unprofessional conduct and, as such, ground for the revocation of a license to practice. The section was upheld by the state supreme court and plaintiff appealed to the United States Supreme Court, alleging that the statute was unconstitutional in that it impaired the obligations of existing contracts and violated the "due process" and "equal protection" clauses of the Fourteenth Amendment. Held, that the statute was a valid exercise …

Corporations -Accountability Of Majority Shareholders For Secret Profits

Michigan Law Review

A corporation wished to obtain a lease owned by B corporation. Unable to purchase the lease, A corporation contracted with C and D, holders of a majority of the stock of B corporation, and officers and directors therein, whereby C and D were to exchange their stock in B corporation for an equivalent of $15.95 a share. C and D further agreed to recommend to the minority an offer of an equivalent of $14.12 a share. On the recommendation of C and D, but without knowledge that they were receiving less for their stock, the other shareholders accepted …

Insurance - Friendly Fires - Cigarette Scorch Claims

Michigan Law Review

The plaintiff had insured certain household goods against fire under a standard policy with the defendant company. One day a burning cigarette was found beneath a smoking-stand and on a rug which was included among the insured articles; it had burned a small hole in the rug, for which damage the defendant company refused to pay and plaintiff brought suit. The company claimed that the fire in the cigarette was a "friendly" fire, and that in order to show a right to a recovery the plaintiff must prove that the damage was done by a secondary, or "hostile," fire set …

Physicians And Surgeons-Voluntary Sterilization-Public Policy

Michigan Law Review

Plaintiff, advised by his physician that further pregnancy would endanger the life of his wife, submitted to an operation of vasectomy. Defendant physician informed him that the operation had been successful and that he could resume sexual relations with his wife without fear. The wife, however, became pregnant and plaintiff alleged that as a consequence he suffered mental agony and was put to great expense. He sued his physician on the theory of deceit in falsely representing to him that he was effectively sterilized. The lower court sustained a demurrer on the ground that the contract was contrary to public …

Trusts - Cy Pres Doctrine -Application To Charitable Trusts - Accumulations

Michigan Law Review

A bequeathed the residue of her estate to the Trustees of Bowdoin College in trust to apply two-thirds of the annual income to the purposes of the Medical School of Maine and to accumulate the other one-third with another fund left by A for the same purpose until the whole should reach $50,000, when all should be applied for the purposes of the Medical School of Maine. The Medical School ceased to function, and the trustees applied to the court for instructions. Held, that there was a general charitable intent, indicated by the use of the word "purposes," and …

Utilization Of State Commissioners In The Administration Of The Federal Motor Carrier Act, Paul G. Kauper

Michigan Law Review

The problem of securing effective governmental regulation of economic interests that overlap state boundary lines, while at the same time curbing the growth of a centralized bureaucracy and preventing the disintegration of local government, becomes daily more disturbing. For this reason the passage of the Motor Carrier Act in the closing days of the 74th Congress and its approval by the President on August 9, 1935, was an event of singular importance for students of American governmental administration. Important as the legislation is in its substantive aspects, it is equally noteworthy because of its administrative provisions. The striking feature of …

Executive Proclamations And Orders-Federal Register, Everett S. Brown

Michigan Law Review

On July 26, 1935, President Roosevelt signed H. R. 6323, "to provide for the custody of Federal proclamations, orders, regulations, notices, and other documents, and for the prompt and uniform printing and distribution thereof." To date, there has been no government serial publication containing all of the Executive orders signed by the President. The need for such a publication had been frequently pointed out, but to no avail. Legal complication resulting from the rapidly rising flood of executive and administrative orders issued to carry into effect the President's New Deal program led to the framing of H. R. 6323. The …

Contracts - Effect Of Agreement That Instrument Shall Be Without Legal Effect

Michigan Law Review

Defendant gave one of its employees a certificate stating that in case of the death of the employee while still in defendant's employ, defendant would pay to the beneficiary designated by the employee a stated sum of money. The certificate contained this further provision: "The issue and delivery of this certificate is understood to be purely voluntary and gratuitous on the part of this Company and is accepted with the express understanding that it carries no legal obligation whatsoever or assurance or promise of future employment, and may be withdrawn or discontinued at any time by this company." In a …

Practice And Procedure - Reversal On Confession Of Error By Prosecutor

Michigan Law Review

On appeal accused assigned as error the failure of the trial court to sustain his motion for a directed verdict of not guilty. The prosecutor, convinced by facts dehors the record of the innocence of the accused, confessed error. Held, confession of error does not per se justify reversal; the court must find error in the record. Parlton v. United States, (App. D. C. 1935) 75 F. (2d) 772.

Wills - Gift's - Construction Of Instrument

Michigan Law Review

Decedent had lived with plaintiff and her parents. In 1932, after telling plaintiff's parents that he had some money in the bank, decedent said, "I got a will here . . . I understand I have got to have two signatures." Both parents, at his request, signed the instrument below.

"Dear Carlotta

"I give to you my money in Live Stock Bank.

"Hans Larsen

"April 16, 1932

"Witness: Michael C. Kelley

"Mamie V. Kelley."

Decedent put the instrument in his bank book and took it into the other room where plaintiff was sitting. He said, "Carlotta, I will give you …

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 34, Issue 1 of Michigan Law Review

Banks And Banking - Collections -"Cash Or Solvent Credits"

Michigan Law Review

The plaintiff drew an out of town draft and deposited it with the A bank for collection. The A bank sent the draft to its correspondent, B bank, to collect and make return when actually paid. The B bank collected the amount of the draft and, according to a custom between the two institutions, credited the account of the A bank and sent them a notice of collection. On the very day this notice was received the B bank closed its doors. A statute provided that items deposited for collection should be credited subject to final payment in cash or …

Wills - Precatory Gifts

Michigan Law Review

In the second item of the will testator gave to his wife all of his property "as her absolute property." In the third item the testator provided: "it is hereby directed that my sister [plaintiff in this case] . . . be given one hundred fifty and no/loo dollars monthly during her natural life and one hundred dollars monthly to my brother-in-law Charles E. McCarle . . . in the event that he survives his wife above mentioned." The fourth item provided that in case the testator's wife predeceased him, one hundred dollars monthly should be paid to each of …

Declaratory Judgments- Extension Of Protection Against Injuries To Personality

Michigan Law Review

The widespread acceptance of the declaratory judgment as a statutory supplement to common law and equitable remedies has raised some searching questions as to the relation between right and remedy in Anglo-American law. The declaratory judgment can operate in anticipation of specific wrongs that would be a basis for ordinary legal or equitable relief. It does not depend for its efficacy on the use of the familiar remedies of law and equity - that is, on damages, specific restitution in replevin and ejectment, and the injunction and specific enforcement in equity. The question may therefore be asked whether the development …

Trusts - Constructive Trusts - Breach Of Fiduciary Relation Between Husband And Wife With Respect To Oral Agreement Concerning Land

Michigan Law Review

In her last illness, Mrs. Jackson desired to transfer realty to her married daughter, plaintiff herein. To prevent creditors of the daughter's husband from reaching the property, Mrs. Jackson conveyed the land to her husband, Mr. Jackson, with the parol understanding that "he would see that Cora got it." Jackson failed to transfer the land and upon his death it passed under an ante-nuptial settlement to defendant, his second wife. In an action to recover the land, the court stated that defendant was in the position of a bona fide purchaser for value, and held that the statute of frauds …

Equity - Rescission Of Contract Induced By Fraud - Money Judgment As An Alternative To Specific Restitution

Michigan Law Review

Plaintiff entered into an agreement for the exchange of interests in real estate with one of the defendants. After payment of part of the boot money agreed upon, the plaintiff defaulted and sued to have the agreement rescinded for fraud. The trial court rendered a money judgment for the amount at which the plaintiff's property had been taken on the trade. Held, that defendant's wife, to whom the property had been conveyed, should have been joined, and that the decree should be modified to order a reconveyance to the plaintiff. Bacon v. Fox, 267 Mich. 589, 255 N. …

Deeds - Effectiveness Of Deeds Delivered With Blank For Name Of Grantee

Michigan Law Review

In an action upon an oral contract to recover the purchase price of an equity in realty, it appeared that the plaintiff executed a deed with a blank left for the name of the grantee and delivered it to the defendant, whereupon the latter refused to make the promised payment, and suit was brought. The Statute of Frauds being interposed as a defense, on the theory that the contract, being oral, was unenforceable in the absence of a showing of part performance, it was held, that the delivery of the incomplete deed, giving the defendant implied authority to fill …

Corporations-Trust Indenture-Bond And Indenture Provisions Giving Notice To Security Holders Of Limitations Upon Right To Sue

Michigan Law Review

In a recent comment in this Review it was pointed out that many corporate bonds contain a clause referring the bondholder to the trust indenture, under which the bonds are issued, for a description of his rights with respect to the bond. The main purpose of this reference clause is to give the holder notice of the limitations upon his right to sue either at law upon the bond or in equity upon the security. These limitations, whatever they may be, are generally too numerous to reprint on the bond, and hence they are found only in the indenture. One …

Future Interests - Rule In Shelley's Case - Where Remainder To Heirs Is "Contingent"

Michigan Law Review

A grantor conveyed premises to his daughter and her husband "For and during their lifetime, then to the heirs of the body of our daughter, Henrietta Ann Briegel, and if she leaves no child or children surviving her, then to her heirs according to law." Henrietta died without ever having had children and devised all her property to her husband, defendant herein. Plaintiff as heir at law of Henrietta brought suit for partition. Held, the remainders created were contingent with a double aspect. The rule in Shelley's case does not apply where the remainder in the heirs is contingent. …

Corporations - Exculpatory Provision In Bond - Stockholders' Liability For Illegal Dividends

Michigan Law Review

A bondholders' protective committee sued a holding company under a Michigan statute making stockholders in street railway companies, who knowingly receive dividends in impairment of capital stock, liable for corporate debt then existing and subsequently accruing while they remain stockholders. The defense relied on was a "no recourse" clause in the bonds wherein the creditors waived their rights to any assessment whatsoever "against any incorporator, stockholder, officer or director of the railway company, or any successor corporation." Held, the "no recourse" clause waived only liabilities where the defendant acted in good faith; not where the defendant acted fraudulently in …

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 33, Issue 8 of Michigan Law Review

Federal Taxation Of Settlors Of Trusts, Harry B. Sutter, Anderson A. Owen

Michigan Law Review

In the Revenue Act of 1924 there simultaneously appeared three new provisions. By Section 219(g) the income of trusts revocable by the grantor, either alone or in conjunction with any person not a beneficiary, of the trust, was specifically required to be taxed to the grantor as his income. By Section 302(d) there was required to be included in the gross estate of a deceased grantor the value at his death of any property previously given by him in trust, where the enjoyment of such property remained subject to change through the exercise by the grantor, either alone or in …

Evasion Of Mortgage Moratoria By Prosecution Of Personal Remedies, Gordon B. Wheeler, Edgar N. Durfee

Michigan Law Review

For reasons political, social and economic which have never been fully analyzed, the moratory legislation of the last five years has shown special favor to the debtor whose obligation is secured by mortgage of land, and this legislation is faintly echoed in moratory decisions which have no direct statutory foundation. Granted that contracts have sometimes received similar treatment, that banks and insurance companies have also enjoyed indulgence, and that the new chapters of the Bankruptcy Act extend asylum to all and sundry, yet the mortgage is so far favored that the word "moratorium" brings to mind this case before all …

Corporate Reorganization-Section 77 Of The Bankruptcy Act--Power Of Court To Enjoin Sale Of Bonds Pledged As Collateral

Michigan Law Review

The recent Chicago, Rock Island case raised an interesting problem under Section 77 of the Bankruptcy Act. The Chicago, Rock Island as parent railroad of a system extending into one-fourth of the states, had pledged large blocks of its own mortgage bonds and those of its subsidiaries, as security for loans made to it by the Reconstruction Finance Corporation and some Chicago, New York, and St. Louis banks, under an agreement whereby the pledgees were given a power of private sale, without notice, upon set contingencies. In addition to the above it had previously pledged with trustees as security for …

Bills And Notes - Bad Faith On Part Of Pledgee Taking Bonds

Michigan Law Review

Defendant, a Wisconsin firm, issued certain bearer bonds secured by a mortgage held by the T corporation, as trustee. A provision in the mortgage defining the duties of the trustee in the disposition of bonds delivered to it was incorporated into the bonds by reference. The trustee being insolvent, plaintiff bank, as pledgee of some of the bonds taken to secure personal loans to the trustee, petitioned the referee in bankruptcy for permission to sell them, claiming to be a bona fide pledgee for value. Held, since federal courts are bound to follow state decisions interpreting state statutes declaratory …

Banks And Banking--Collections Of Out-Of-Town Items--Priorities On Insolvency Of Correspondent Bank

Michigan Law Review

In settlement of an adverse balance on the day's clearings, D bank gave to plaintiff a draft on its metropolitan correspondent. D bank then became insolvent, and on presentment the drawee refused to pay, though D bank had sufficient funds on deposit to cover the draft. The receiver allowed plaintiff's claim as a general one. There was no indication that D knew it was insolvent at the time it issued the draft. Plaintiff then brought suit against the receiver to establish a preferred claim. Held, that the issuance of the draft created a trust fund, and plaintiff bank was …

Constitutional Law - National Industrial Recovery Act

Michigan Law Review

Defendants conducted wholesale poultry slaughterhouse markets. They had been convicted in a District Court of violating the following provisions of the "Live Poultry Code," promulgated under Section 3 of the National Industrial Recovery Act: (1) Minimum wages; (2) Maximum hours; (3) Requirement of "straight killing"; (4) Requirement of compliance with the inspection ordinances of the City of New York; (5) Requirement of filing of true reports of volume of business, etc., to the Code Authority; (6) Requirement of sale to dealers licensed by the City of New York. On a writ of certiorari to the Supreme Court of the United …

Bills And Notes-Checks-Delay In Presenting For Payment Where Payee Has Deposited In Out-Of-Town Bank

Michigan Law Review

The defendant in Kenosha, Wisconsin, drew a check on a Kenosha bank and mailed it to the plaintiff in Chicago. Fallowing the practice of many other business houses in Chicago to avoid a high collection charge, the plaintiff, instead of depositing the check in Chicago, sent it by air mail the day after its receipt, for deposit and collection to the plaintiff's bank in Minneapolis, which collected the check through the Federal Reserve Bank in Chicago. The result was presentment to the drawee bank at least one business day later than would have been the case if the check had …

Constitutional Law -Validity Of State Mortgage Moratorium Statutes - Effect Of Emergency

Michigan Law Review

A Maryland statute provided that mortgagees holding less than a 25 per cent interest in a mortgage could not have recourse to summary remedies for sale of mortgaged property during an emergency period declared to exist until June 1, 1935. Plaintiff, the holder of such an interest in a mortgage providing for summary proceedings for sale upon default, had the right to foreclose in this manner, mortgagor having defaulted, if the statute did not bar his action. Held, the remedies denied were so interwoven with the rights contracted for that the abolition of such remedies impaired the right, and …