Digital Commons Network^™

Carriers - Statutory Limitation Of Liability - Degrees Of Care

Michigan Law Review

When the decedents attempted to drive from the petitioner's ferry boat, the chain holding the boat to the dock parted and the truck in which they were riding was precipitated into the river, drowning the occupants. In a proceeding in admiralty against the administrator of the deceased persons, under the statute limiting the liability of shipowners, the court held that the statute limiting liability applies only when the owner of the vessel is sought to be made liable for the fault of a servant or agent, and that the duty to provide a seaworthy vessel is a non-delegable one which …

Constitutional Law-Right To Competition

Michigan Law Review

The appellee was engaged in the business of selling natural gas. A rival utility entered the field duplicating the plant and facilities of the appellee and established with the consent of the Public Service Commission a rate lower than the prevailing rate charged by the appellee. In an attempt to retain its customers against the lower prices of its competitor the appellee lowered its rate several times. The appellants finally ordered the appellee to submit evidence as to the reasonableness of its rates. Upon investigation the Public Service Commission found that the business in the territory was capable of supporting …

Contracts - Liability Of The Assignee Of A Land Contract - Reformation By Extrinsic Evidence

Michigan Law Review

Defendant Campbell assigned a contract to purchase land from the plaintiff to the defendant bank, the evidence being undisputed that the assignment was additional security for an existing indebtedness of Campbell. A printed form containing a promise by the assignee to pay the purchase price was used. The name of the assignee was left blank in order that the name of a prospective purchaser could be filled in if an anticipated sale materialized. In an action to foreclose the land contract the vendor asked for a deficiency judgment against the defendant bank. Held, that the vendor was not entitled …

Contracts - Rescission For Fraud - Necessity Of Restitution

Michigan Law Review

Defendant purchased an automobile from the plaintiff's assignor. While the car was in defendant's possession and prior to the start of the suit, the car was stolen from him and was later discovered in a wrecked condition. In a suit by plaintiff for the purchase price defendant sought to rescind for fraud, tendering the wrecked automobile. The contract contained a stipulation to the effect that the risk of loss or injury from any cause whatsoever was to be on defendant. Held, that defendant was not entitled to rescind because plaintiff could not be placed in status quo. American …

Corporations - Identity As Basis For Enforcing Contract Of Predecessor Against Successor - Fraud

Michigan Law Review

The stockholders and officers of the Old South Engraving Company, wishing to escape a contract whereby that corporation was bound to hire only union labor, organized the Old South Photoengraving Corporation which purchased the business of the Engraving Company, giving therefor 9,000 of the issue of 12,000 no-par shares and issuing the rest to the stockholders of the Engraving Company in proportion to their holdings therein. It was announced that the Engraving Company would cease operating Saturday, June 4, and employees were given due notice. On Monday, June 6, the new company began operating at the same location with non-union …

Fixtures - Rights Of Conditional Vendors Against Mortgagees Of Realty

Michigan Law Review

Plaintiff sought to foreclose a mortgage with an after-acquired property clause on an industrial plant in which were installed various pieces of machinery sold by the defendant vendors under a conditional sale to the mortgagor after the execution of the realty mortgage. The machinery was so attached as to become fixtures and was evidently necessary to the continuance of the enterprise, but was removable without damage to the building as it stood before the machinery was installed. It was held that the conditional vendors could remove the machinery. People's Savings & Trust Co. v. Munsert, (Wis. 1933) 249 N. …

Partnership - Declaration Of Trust - Stipulation Against Personal Liability

Michigan Law Review

Plaintiff, the payee of a note of a Texas unincorporated association, sought to hold the defendant shareholders liable as partners. The articles of association provided for trustees to hold and manage the association property, but reserved powers in the shareholders so the latter could: (I) increase capital stock, (2) annually elect the trustees and annually increase or diminish the number of trustees, (3) repeal or amend any of the articles of association, (4) order trustees to call special meetings, (5) remove trustees and subject them to shareholders' orders at all times, ( 6) transact such business as they might inaugurate …

Searches And Seizures - Reasonableness Of Arrest - Use Of Evidence Secured Through Unreasonable Arrest- Statutory Changes

Michigan Law Review

Police officers patrolling Detroit streets in a radio-equipped police car stopped a taxicab in which defendants Stein and Massie were riding. From the statement of the court, the officers' attention was attracted to the cab "because it was 'driving pretty fast,' about 32 miles per hour." The police car pursued it for a block or more; as it drew abreast of the cab defendant Stein was seen to reach into his pocket as if to take something out and put it behind him. "There was something about the cab, probably aside from its speed, which suggested to officer Sullivan that …

Taxation - Deduction Of Capital Losses

Michigan Law Review

Executors were directed to sell the testator's residuary estate. Out of one-fifth of the proceeds a trust fund of $500,000 was to be set up, and the balance given to plaintiff absolutely. The testator in his will then stated that a large part of his residuary estate would consist of realty "which should not be sold excepting under favorable conditions," and directed his executors to hold and manage it until it could be advantageously sold. After some years the executors sold a piece of land at a loss. Plaintiff was entitled to one-fifth of the proceeds, and so he deducted …

Torts- Master And Servant- Duty Not To Expose Thinly-Clad Servant To The Elements

Michigan Law Review

The plaintiff, a 15-year-old boy, was employed by the manager of the defendant's store in delivering merchandise and in peddling bills. One cold day the manager asked the plaintiff to accompany him in the truck and deliver orders. Despite the boy's objection that it was "too stormy," the manager told him that he must go, that he would not have time to go home after warmer clothing, that he would be gone but a short time, and that "he would be all right." As a result of this trip, the plaintiff became seriously ill and now sues for damages on …

Book Notes

Michigan Law Review

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

Municipal Corporations - Municipal Responsibility For The Torts Of Policemen

Michigan Law Review

E, standing near the scene of a holdup in the Bronx, was shot by a stray bullet from the gun of a policeman engaged in pursuing several highwaymen. The Municipal Assembly of New York City enacted in 1927 an ordinance providing that the Board of Estimate is authorized to make an award of damages to such innocent bystanders when injured by policemen. E received an award of $6,740 from the Board for injuries suffered. Upon the Comptroller's refusal to pay it without a judicial declaration of its legality, E sued out a writ of mandamus. It was held that …

State Taxation Of Interstate Motor Carriers, Paul G. Kauper

Michigan Law Review

Motor transportation for hire, as indicated earlier in the article, has become a business of large proportions and, like every other business, should be subject to the ordinary business taxes. More particularly, since it is a form of public transportation, it should be subject to the same kinds of taxes that are exacted from other businesses of the public utilities type.

Constitutional Law - Federal Control Over Crime - Scope Of Power To Regulate Crime Under The Commerce Clause

Michigan Law Review

The increase of criminal activities interstate in scope, and the growing dissatisfaction with state enforcement of local laws, have focused attention of late upon the power of Congress to regulate crime under the commerce clause of the Constitution. Outstanding among proposals for congressional legislation are the following: making interstate felonies federal offenses; punishing criminals who flee across state lines after committing a crime; and restricting the sale and transportation of firearms. Most, if not all, of this suggested legislation must rest on the commerce clause for its validity. We purpose here to discuss the nature and scope of this power, …

Bankruptcy - Disposition Of Surplus Assets

Michigan Law Review

The Virginia Oil & Refining Co., a Delaware corporation with all of its business in Texas, went into bankruptcy in 1923. In 1931 hitherto worthless property became valuable and it appeared that there would be a large surplus after all of the creditors were paid. Various receivers in both the state and federal courts of Delaware and Texas, representing groups claiming to be stockholders of the company (which had forfeited its charter) and others claiming to represent the company, sought control of the assets. The bankruptcy court appointed a receiver, to whom the trustee was to turn over the surplus, …

Constitutional Law - Emergency Banking Act - Delegation Of Power

Michigan Law Review

Defendant was indicted in two counts: (1) for failure to file a return in respect to gold bullion held by him, and (2) for holding over $200,- 000 in gold bullion without a license, in violation of the Presidential Order of August 28, 1933, issued by authority of the Emergency Banking Act of March 9, 1933. This Act declared an emergency to exist, by Title I, sec. 2 amended the Trading with the Enemy Act by authorizing the President "during time of war or during any other period of national emergency declared" by him to regulate or prohibit (inter …

Constitutional Law - Force And Effect Of Clauses Providing For Payment Of Private Indebtedness In Gold

Michigan Law Review

Certain Belgium company bonds were issued providing for payment of interest "in sterling in gold coin of the United Kingdom of or equal to the weight and fineness existing on September 1, 1928." After England had left the gold: standard the issuing company sought to make interest payments in depreciated pounds. Plaintiff bondholder sought to enforce payment of sufficient depreciated currency to enable him to purchase on the day of payment gold in the same quantity as he would have received had payment been due September 1, 1928. The English House of Lords held for plaintiff, reversing the decision of …

Criminal Law And Procedure - "Public Enemy" Statutes - Constitutionality

Michigan Law Review

Defendants were convicted of the crime of being disorderly persons within the meaning of section 167, Michigan Public Acts, 1931, No. 328, which provided that "any person who engages in an illegal occupation or business . . . shall be deemed a disorderly person. Proof of recent reputation for engaging in an illegal occupation or business shall be prima fade evidence of being engaged in an illegal occupation or business." Police officers testified as to the reputation of the defendants for being bootleggers, stick-up men, robbers, and murderers. Held, that section 167 of the statute is unconstitutional and void …

Federal Practice -Jurisdiction Over Non-Federal Questions - Meaning Of Cause Of Action

Michigan Law Review

Petitioners brought suit in a federal court to enjoin the respondents from publicly producing a play, alleging that it infringed a copyrighted play of the petitioners and that it would also constitute unfair competition. The parties were citizens of the same State. After considering the claim of infringement on its merits, the court held that, although there was no infringement threatened, the jurisdiction acquired by reason of that federal question might be retained to consider the issue of unfair competition. Hurn v. Oursler, 289 U.S. 238, 53 Sup. Ct. 586 (1933).

Future Interests -Transferability Of Right Of Entry For Breach Of Condition

Michigan Law Review

Plaintiff's ancestor conveyed land to the city, on the express condition that the city should construct and forever maintain a "speedway" on the premises conveyed, reserving to himself, his heirs and assigns a right of entry for breach of the condition. Subsequently, before the condition was broken, he conveyed to a third party all his remaining land adjoining the Speedway, "together with all the right, title and interest of the party of the first part, in said Speedway." The breach of the condition having since admittedly occurred, the plaintiff, the heir of the original grantor, sought to assert the right …

International Law -Extradition - Construction Of Treaty

Michigan Law Review

On complaint of the British Consul that the petitioner had "received certain moneys knowing the same to have been fraudulently obtained," the United States Commissioner for the Northern District of Illinois issued his warrant to hold petitioner in custody for extradition to England, under Article 10 of the Webster-Ashburton Treaty of 1842, as supplemented by the Blaine-Pauncefote Convention of 1889, and certified the evidence to the Secretary of State. Upon application by petitioner for writ of habeas corpus and certiorari in its aid, the district court ordered him released from custody on the ground the act charged was not within …

Federal Practice -Appeal And Error - Review Of Denial Of Motion For New Trial

Michigan Law Review

The federal appellate courts have, in a great many decisions, refused to review the denial of a motion for a new trial made in a lower federal court. The very recent case of Fairmount Glass Works v. Cub Fork Coal Co. once again presents the problem, and Justice Brandeis, writing the majority opinion, follows the prior holdings. In this very excellent opinion the learned Justice presents the reasons for the result generally reached, and enumerates some of the exceptions in a manner which should tend to clarify much of the doubt which has existed in this field of appellate jurisdiction.

Trade Restraints - Inducing Breach Of Contract

Michigan Law Review

Plaintiff had "exclusive requirement" contracts with 90% of the users of electricity in various communities in Texas. Defendant was in the business of selling municipal electric plants to communities under a plan whereby, on assurance that enough users would enter into exclusive contracts to make the plant a success, the defendant agreed to look for payment to the revenue of the plant only. Installation of a municipal plant would, therefore, necessitate breaches of the "exclusive requirement" contracts on the part of some of plaintiff's customers. Held, that plaintiff was not entitled to an. injunction restraining defendant from inducing plaintiff's …

Book Notes

Michigan Law Review

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

Federal Practice-Entry Of Judgment Notwithstanding Verdict On Undisputed Evidence

Michigan Law Review

In an action on a contract the plaintiff claimed the entire contract price as damages on the theory of an anticipatory breach by the defendant. The trial court, however, on the undisputed facts, instructed the jury that the plaintiff could recover only the damages suffered prior to the first day of the present term of court. Held, by the Circuit Court of Appeals, that the trial court should have instructed the jury to return a verdict for the plaintiff for the entire contract price, but that a new trial was not necessary and the cause should be remanded to …

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 32, Issue 3 of Michigan Law Review

The Municipality As A Unit In Ratemaking And Confiscation Cases, Robert D. Armstrong

Michigan Law Review

The recent decision of the Supreme Court of the United States in the so-called Martinsville case has been interpreted by some critics as laying down a "municipal unit doctrine" of rate making, denying to a system utility the right to earn from its entire operations a fair return on the value of its entire property, and substituting therefor a "bundle of rights" to earn in each "municipality" served a fair return on the value of the property used and useful therefor.

Process In Actions Against Non-Resident Motorists, Maurice S. Culp

Michigan Law Review

Personal service on the defendant within the jurisdiction of a State is the conventional form of process in personal actions. But considerations of convenience and public need have resulted in recognizing an additional form of process in personal actions against nonresident motorists. Statutes in 35 States authorize the commencement of suit against the non-resident motorist by substituted service on a public official of the State where the cause of action arises; the official is made for this purpose the agent or attorney of the non-resident motorist.

It is proposed herein to discuss (1) the constitutional basis of such legislation, and …

Bankruptcy - Fraudulent Transfers -Trustee's Assignee

Michigan Law Review

Since bankruptcy proceedings contemplate a sale of the debtor's assets, the importance of knowing what the trustee may sell is at once obvious. One must, however, go further and inquire as to the rights of purchasers from the trustee. This question assumes importance to the trustee, since it determines what he may sell, and is also important to the purchaser, since it determines what he may buy. The answer determines the efficiency of our bankruptcy machinery. In this comment we propose to consider one phase of this general question: May the trustee assign his right to set aside a fraudulent …

Insurance - Failure To Act Promptly On Application - Tort Liability Of Insurer

Michigan Law Review

Although mere delay in passing upon an application for insurance cannot, as a rule, be construed as an acceptance of the offer for a contract of insurance, in recent years some courts have held insurance companies liable in tort where there has been delay in acting upon the policy and the loss sought to be insured against has occurred in the meantime. Plaintiff, to sustain a cause of action in tort, must prove negligence on the part of the insurer, or its agents, and that the policy would have been issued to the applicant but for the negligence. The suit …