Digital Commons Network^™

Contracts - Beneficiaries - Injured Party As Beneficiary Of Public Liability Insurance Policy

Michigan Law Review

Plaintiff recovered judgment against the insured for injuries received in an automobile accident. The judgment being unsatisfied, plaintiff sued the insurer on its public liability policy. Held, the policy by implication intended a benefit to the injured person and he may sue as a creditor-beneficiary. Ohio Casualty Ins. Co. v. Beckwith, (C. C. A. 5th, 1935) 74 F. (2d) 75.

Criminal Law And Procedure -Attempt To Commit Murder

Michigan Law Review

The accused had repeatedly threatened to kill one Albert Jeans. Subsequently the accused, armed with a rifle, was seen to approach a number of men among whom was Jeans working in a field. The workmen saw him pause, apparently load the rifle, and proceed toward Jeans. When about two hundred yards from Jeans, he was intercepted by one of the workmen who took the rifle from him, the accused offering no resistance. The rifle was found to be loaded. The court held that there was sufficient evidence of overt acts on the part of the defendant to constitute an attempt …

Deeds-Instrument In Form Of Contract For Sale Of Land As Gift

Michigan Law Review

Decedent executed and delivered to his sister, the petitioner, in a sealed envelope an instrument in the form of an executory contract for the sale of land by the terms of which the decedent promised to convey to the petitioner his undivided two-thirds interest in a certain building and lot. The execution of the instrument was not the result of any agreement and no consideration was paid, although receipt of payment in full was endorsed on the back of the instrument. After decedent's death the envelope was produced and the probate court under a statutory authority ordered a conveyance to …

Taxation - Delinquency Statute - Constitutionality Of Provision Remitting Back Taxes

Michigan Law Review

Mandamus proceedings were begun to compel a county auditor to accept four-fifths of the taxes as originally assessed on certain land in full payment and discharge of those taxes for the years 1929 and 1930, in accord with the tax remission provision of Minnesota Laws 1933, c. 414, sec.1. Held, that allowing discharge of past taxes during the redemption period by payment of a fraction of those originally assessed was contrary to the uniformity clause of the state constitution as an unreasonable and arbitrary classification, since it resulted in allowing a lower tax rate to delinquent taxpayers than was …

Taxation - Power Of Appointment - Effect Of Refusal By Appointee Who Is Given Same Share In Default Of Appointment

Michigan Law Review

The donee of a power of appointment exercised it by will in favor of the persons who would have taken exactly the same interests in default of appointment, and who declared their election to decline the appointment and take by the provision in default of appointment in the will of the donor. Suit was brought for additional federal estate taxes covering the property to which the power applied, under a statute levying such a tax upon "any property passing under a general power of appointment exercised by the decedent . . . by will . . . . " Held …

Trusts-Accumulations-Effect Of Statutes Against Accumulation On The Validity Of A Charitable Trust For Accumulation

Michigan Law Review

S deposited in the Bank of Canby $ 1000 in trust for the city of Canby, with a direction to accumulate interest at 4 per cent compounded semi-annually, for 110 years, and then to pay the accumulated fund to the city. The settlor recommended that the city dispose of the fund "as may seem proper and for the best interest of the community." The bank failed, and the city, having received a pro rata payment, claimed a preference for the remainder. Held, plaintiff is entitled to a preference. Although it was to endure longer than the maximum period named …

Book Notes

Michigan Law Review

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

Corporations-State Privilege Taxes-Valuation Of Property To Determine Surplus

Michigan Law Review

Various bases have been evolved in this country for computing corporation privilege taxes. Of special interest is the fact that seven states have made corporate surplus together with capital the basis for such taxes - Louisiana, Michigan, Mississippi, Missouri, North Carolina, Ohio, and Texas. The statutes of these states adopt either the gross value or the net value of the assets of corporations as the foundation of the tax, depending upon whether or not liabilities may be deducted. In fixing the amount of such a tax, some valuation of corporate property to determine the corporation's surplus is necessary.

Legislative Attack On "Heart Balm", Nathan P. Feinsinger

Michigan Law Review

Public resentment over the abuses incident to "heart balm" suits has recently culminated in sweeping legislative reform. Through the repeated efforts of a woman legislator, Indiana has abolished actions for seduction of females over twenty-one years of age, for breach of promise to marry, and for criminal conversation and alienation of affections. Almost immediately New York, and shortly thereafter Illinois, passed similar legislation, and at least ten other states are now considering analogous proposals.

Has The Constitution Gone?, John A. Fairlie

Michigan Law Review

As far back as 1828, Chief Justice Marshall is quoted as saying: "Should Jackson be elected, I shall look upon the government as virtually dissolved." A few years later, when Taney was appointed Chief Justice by Jackson, Daniel Webster wrote: "Judge Story thinks the Supreme Court is gone, and I think so too." Soon afterwards, when the newly constituted Court rendered decisions upholding statutes from which Story dissented, the latter wrote to Judge McLean: "There will not, I fear, ever in our day, be any case in which a law of a State or of Congress will be declared …

Admiralty-Power Of Congress To Extend Jurisdiction Constitutional Limitations

Michigan Law Review

"The judicial Power shall extend . . . to all Cases of admiralty and maritime Jurisdiction."

"The Congress shall have Power . . . To make all Laws which shall be necessary and proper for carrying into Execution . . . Powers vested by this Constitution in the Government of the United States."

These clauses of the Constitution of the United States provide the foundation for the exercise of jurisdiction in admiralty causes by the federal courts. The recent decision of the United States Supreme Court in the case of The Thomas Barlum, upholding the constitutionality of the Ship …

Eminent Domain --Valuation Of Leaseholds -- Apportionment Of Award Between Landlord And Tenant In Long-Term Lease

Michigan Law Review

The Michigan Supreme Court had before it last fall a very unusual case involving the apportionment of a condemnation award between landlord and tenant. Only a portion of the leasehold premises was condemned. The lease still had approximately eighty years to run; it had no market value due primarily to the depression; and it constituted the sole assets of the lessee. The lease contained a clause. providing for rent abatement in case part of the premises was condemned. The lessors insisted that the lessee must be content with this rent abatement and that they were entitled to the whole award. …

Corporations-Section 77b Of The Bankruptcy Act-To What Corporations It Applies

Michigan Law Review

Creditors of a title and mortgage company which had gone into receiver's hands petitioned for a reorganization of the company under Section 77B of the Bankruptcy Act. Held, that the company was an insurance corporation. Insurance corporations are not amenable to Section 77B. Petition for reorganization dismissed. In re New York Title and Mortgage Co., (D. C. N. Y. 1934) 9 F. Supp. 319.

Corporations-Liability For Unpaid Subscriptions-Power Of Receiver To Collect Unpaid Amount

Michigan Law Review

The liability of a subscriber to corporate stock exists by virtue of the contractual obligation to the corporation to pay the subscription price or the unpaid installment thereon. Because this liability is often declared by statute, it is essential, to avoid a confused analysis of the precise nature of the liability in question, to distinguish other types of stockholder's liability. Statutory super-added liability in excess of the par value of the stock, and liability for watered stock are excluded from consideration. An analysis of the subscriber's liability will be materially aided by a classification with respect to plaintiffs entitled to …

Criminal Law And Procedure - Right Of Accused To Be Present At Trial

Michigan Law Review

In a prosecution for bank robbery, testimony of a witness which did not connect the accused with the crime and merely served to qualify the witness was received during the unnoticed and involuntary absence of the accused. No objection was made by the counsel for the accused who was present at the time. When the accused's absence was discovered, the motion of counsel that the cause be withdrawn from the jury was overruled and the court admonished the jury not to consider the testimony. Appellant contended that he had been denied a right and that therefore injury must be presumed. …

Recording - Operation Of The Recording Acts On Quitclaim Deeds

Michigan Law Review

A conveyed two specific lots in Harris County to B. Before that deed was recorded, and while the lots were still vacant, A conveyed several specific tracts of land to C and added a blanket clause of "all other lands and interest in lands belonging to A in Harris County"; C made a like conveyance to D; D conveyed the two specific lots in question to E by warranty deed; E conveyed the two lots to plaintiff by warranty deed sixteen years after the deed to C. All the deeds in the second chain of title were …

Trusts - Mortgage Participations As Trust Investments -Effect Of Invalidity

Michigan Law Review

The Commercial Savings Bank and Trust Company of Toledo, Ohio, in March 1931, executed an instrument called a Declaration of Trust, in which it recited that it had transferred to its trust department certain notes and mortgages for the purpose of issuing certificates of participation therein. The notes alone were physically transferred to the trust department, the mortgages being retained by the real estate loan department of the bank. The real estate loan department also collected the interest and principal on the notes transferred to the trust department. The Declaration of Trust expressly authorized the trust department to make substitutions …

The Enforcement Of Foreign Judgments In Anglo-American Law, Hessel E. Yntema

Michigan Law Review

Conflicts of laws are the necessary result of the division of judicial business. There are too many legal actions arising in localities too diffused to be tried in a single court or system of courts; consequently, litigation has to be distributed, and a highly complex body of jurisdictional regulations has been evolved to control the distribution. Once admit the multiplicity of courts, and diversities of law appear. Not only does the procedure in particular courts respond in some degree to the local traditions of the bar and to the specialized needs of the communities served, but indigenous precedents and practices …

Constitutional Law--Mortgages--Frazier-Lemke Act

Michigan Law Review

In 1922 and 1924 appellee mortgaged property worth $18,000 to secure a loan of $9,000 from appellant which was to be repaid in installments over a period of thirty-four years. Default being made on the covenants in the mortgage, the mortgagee declared the full amount due and brought a suit to foreclose. Proceedings were stayed when the appellee sought relief under Section 75 of the Bankruptcy Act, but he was unable to obtain the requisite majority in number and amount to the composition proposed. The state court entered a foreclosure judgment and ordered a sale. The mortgagor then sought relief …

Constitutional Law -The Railroad Retirement Act - Interstate Commerce - Due Process

Michigan Law Review

Serious obstacles were placed in the path of social legislation by the Supreme Court's decision holding the Railroad Retirement Act unconstitutional.1 To what extent the narrow view taken of the permissible field of regulation of interstate commerce will interfere with other legislation based on the commerce power remains to be seen. The majority of the Court, speaking through Mr. Justice Roberts, found the Act objectionable both as violating the due process clause of the Fifth Amendment of the Constitution and as not being a regulation of commerce under the commerce clause. Before taking up these two aspects of the case, …

Conditional Sales -Tort Liability Of Vendor For Recaption Of Property Conditionally Sold

Michigan Law Review

Defendant transferred a piano to plaintiff under a conditional sales contract retaining the right in case of any default in payment "to peacefully or forcibly, and without process of law, enter the premises where said property is . . . and to take . . . possession thereof." Plaintiff de-faulted in payment. Employees of defendant, entering the house of plaintiff in his absence and without notice, removed the piano. Held, plaintiff may not recover for a conversion, but may recover for a breaking and entering whether defendant's agents broke into the house with actual force, or mere technical force, …

Constitutional Law-Exclusion From Juries On Grounds Of Race And Color-Scottsboro Case

Michigan Law Review

A negro convicted of rape in one of the so-called "Scottsboro" cases moved to quash the indictment and the trial venire, alleging systematic exclusion of negroes from the grand and petit juries on the grounds of race and color. The trial court overruled the motions, and the Alabama Supreme Court sustained this decision, holding that the evidence failed to establish such exclusion. On certiorari to the United States Supreme Court, held, that the refusal to quash the indictment and trial venire was a denial of equal protection of the laws contrary to the Fourteenth Amendment, since the evidence on …

Constitutional Law-Presidents Power To Remove Federal Officers

Michigan Law Review

The Federal Trade Commission Act provided that, "Any commissioner may be removed by the President for inefficiency, neglect of duty, or malfeasance in office." The President, in removing a commissioner who had been appointed with the consent of the Senate for a seven-year term, disclaimed any reflection upon the commissioner personally or upon his services, but stated that the removal was made because " . . . I do not feel that your mind and my mind go along together on either the policies or the administering of the Federal Trade Commission, and, frankly, I think it best for the …

Corporations-Reorganization Under Bankruptcy Act-Jurisdiction Extending Throughout United States As Substitute For Ancillary Proceedings

Michigan Law Review

On petition of debtor railroad seeking reorganization under Section 77, the District Court for the Northern District of Illinois, eastern division, enjoined non-resident pledgees from exercising their power of sale. Extra-territorial jurisdiction was grounded on Section 77 B, giving to the District Court "exclusive jurisdiction of the debtor and its property wherever located." Held, that "exclusive jurisdiction" means control over the debtor's property wherever located within the United States, and to protect the property process may issue affecting persons anywhere within the United States. Continental Illinois Nat. Bank v. Chicago, Rock Island & Pacific Ry., (U.S. 1935) 55 …

Easements - Extinguishment By Adverse Possession Of Servient Owner - Character Of Acts Necessary

Michigan Law Review

In I 902, Y, the owner of riparian land, granted to W, by deed then recorded, the flowage rights over such land. Some years later by general warranty deed containing no reference to the easement, the servient land was conveyed to L, from whom by similar successive conveyances it came to the plaintiff. In the interval the flowage rights had passed to the defendant, and in 1931 the latter erected a dam across the river and flooded the plaintiff's land. Thereupon the plaintiff brought this action for damages. The trial court held that, though all the owners …

International Law-Expatriation-Citizenship Of Child Lost By Removal And Expatriation Of Father

Michigan Law Review

Petitioner, a native-born American woman, was taken to Canada by her father who became naturalized there while she was still a minor. Petitioner later married a British subject and seeks naturalization here under a statute authorizing this to American women who have lost their citizenship through marriage to an alien. A treaty in force between the United States and Great Britain provided that persons naturalized according to Canadian law should lose American citizenship. The Canadian statute provided that if the father became naturalized, his minor children should, "within Canada," be deemed Canadian subjects. Held, that petitioner had not lost her …

Public Utilities - Rates -Value Of The Service As Basis

Michigan Law Review

The power company had been serving a sparsely settled rural district in Utah for many years; it had never during its history paid dividends of over 5 per cent, during the last fourteen years it had averaged 3.75 per cent, and during the last five years 2.75 per cent. On the petition of customers who argued that the company should bear part of the burdens of the economic depression, the state utilities commission ordered a ten per cent reduction of all rates on the basis that the charge should not be more than the service was worth. Held, while …

Special Assessments - Constitutionality Of Legislation Modifying Means Of Enforcement Of Special Assessment Liens

Michigan Law Review

An Arkansas statute, affecting the mortgage securing certain special assessment bonds, provided, inter alia, for the extension of the interval between default in payment and sale under foreclosure from sixty-five days to at least two and a half years, reduced the penalty for non-payment from twenty per cent to three per cent, and provided that the possession of the delinquent property owner be undisturbed for four years after sale on foreclosure, thus modifying the law existing at the time the bonds were issued. The United States Supreme Court held the statute to be invalid as violating the constitutional prohibition …

Trusts - Constructive Trust As Device To Permit Tracing Of Plaintiff's Property In Action Of Rescission For Breach Of Warranty

Michigan Law Review

Defendant, in order to finance the purchase of a tract of land adjoining his farm, arranged to sell the oil and gas lease in the new tract to the plaintiff for $750. He took a conveyance of the new tract, giving a check to the vendor for $1,200, the entire purchase price. A few hours later he executed an oil and gas lease to the plaintiff who paid him $750, which defendant then deposited in his bank account together with $650 he had borrowed from the bank, thus covering the $1,200 check. Both parties understood that the money paid by …

Trusts--Reserved Powers Of Appointment-Creditor's Rights

Michigan Law Review

X, feme sole, in good faith transferred personalty to appellant in trust to pay the income therefrom to her for life and to transfer the principal and income to such persons as she might by will appoint, and in default of appointment then to her issue and if no issue survive her and the power be not exercised then to her next of kin. Subsequent creditors of X brought suit during her lifetime to compel payment out of the trust corpus. Held, the corpus was not subject to claims of subsequent creditors. Mercantile Trust Go. v. Bergdorf …