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Michigan Law Review

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Constitutional Law - Due Process-Business "Affected With A Public Interest'' Jun 1932

Constitutional Law - Due Process-Business "Affected With A Public Interest''

Michigan Law Review

Ever since Munn v. Illinois there has been continuous dispute as to what regulation is deprivation of property without due process of law within the prohibition of the Fourteenth Amendment. In this first case Chief Justice Waite, discussing with approval prior statutes regulating the rates of chimney sweeps and of auctioneers, the price of bread, the charges of draymen and of hackneycabs, concluded that, if these might be regulated, surely so important a matter as the rates of the great grain elevators in Chicago might be subjected to regulation. The position taken was expressed by these sentences: "From this it …

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Arrest For Crime -The Law's "Crazy Business" Jun 1932

Arrest For Crime -The Law's "Crazy Business"

Michigan Law Review

In the Wilbur Day case, the facts as presented by Time indicate that Day was in truth guilty of the felony for which he was arrested. Under the statute, therefore, the arrest was lawful and the case should not have been dismissed. The defendant's attorney appears, unfortunately, to have misled the trial judge.

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Constitutional Law-Criminal Procedure-Comment By Judge On Evidence Jun 1932

Constitutional Law-Criminal Procedure-Comment By Judge On Evidence

Michigan Law Review

In the recent case of People v. Kelly, the Illinois supreme court decided (two justices dissenting) that the common law right of a judge, in charging the jury, to comment on the evidence and advise as to the facts was not an essential attribute of trial by jury as it, existed at common law, and held that a statute limiting the charge strictly to matters of law was not an infringement of the right of trial by jury guaranteed by successive Illinois constitutions. The court also decided, in upholding the legislative enactment, that this restriction of the functions of …

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Banks And Banking - Preferred Claims Of Savings Depositors - Set-Offs Jun 1932

Banks And Banking - Preferred Claims Of Savings Depositors - Set-Offs

Michigan Law Review

Members of the Michigan bar who have had to deal with perplexing receivership problems, growing out of the many recent bank failures, should welcome the case of Reichert v. Farmers & Workingmens Savings Bank, 257 Mich. 500, decided April 4, 1932. It involves twelve important questions in banking law, certified from the Jackson circuit court. The answers of the supreme court to these questions should serve to settle the law for the benefit of receivers and their counsel for years to come.

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Constitutional Law - Redistricting For Congressional Elections - Lawmaking Power Of The State Jun 1932

Constitutional Law - Redistricting For Congressional Elections - Lawmaking Power Of The State

Michigan Law Review

By the latest reapportionment of the House of Representatives (tit. 2, U. S. C. A., art. 2a), passed in 1929, Minnesota received one less representative than it had had by the previous apportionment (Act of 1911, tit. 2, U. S. C. A., sec. 2). The state legislature of Minnesota passed an act dividing the state into congressional districts in accordance with this apportionment, and the governor vetoed the bill. Thereupon the state house of representatives, by resolution, directed the secretary of state to enroll the bill as a law on the ground that the veto of the governor was a …

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Contracts - Assignment - Right Of Partial Assignee Jun 1932

Contracts - Assignment - Right Of Partial Assignee

Michigan Law Review

One White assigned to the plaintiff, for a valuable consideration, part of the amount due him (White) from the defendant as wages for the last half of October. Before the time of payment on November 15th, the plaintiff had given written notice of the partial assignment to the debtor, defendant, who refused to recognize it, and who on the 15th of November paid the total sum due to White. Plaintiff sues in equity for. the $25.00 assigned to him, alleging the above facts. Held, that the defendant was in equity bound by the notice of the partial assignment and must …

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Corporations - Situs Of Stock For Purpose Of Transfer Jun 1932

Corporations - Situs Of Stock For Purpose Of Transfer

Michigan Law Review

O, of New York, owned certificates of stock in a Delaware corporation, which were indorsed in blank. E stole the certificates and sold them to P, who purchased in good faith and sent them in for transfer on the books of the corporation. On refusal of the corporation to make the transfer, P sued in Delaware for conversion, claiming that the title was transferred under the law of New York where he purchased. Held, under sec. 72 of the Delaware General Corporation Law (Rev. Code 1915, sec. 1986) "the situs of stock in a Delaware Corporation, in a suit …

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Federal Jurisdiction - Diversity Of Citizenship - Suit Under Death Act Jun 1932

Federal Jurisdiction - Diversity Of Citizenship - Suit Under Death Act

Michigan Law Review

The decedent, a citizen of Oklahoma, died as the result of injuries alleged to have been negligently inflicted by the respondents, citizens of Louisiana. An Oklahoma statute, creating a cause of action for death by wrongful act, requires that the administrator maintain the suit, the proceeds of which are to be divided between the widow and children and are not to be assets of the estate. Okla. Comp. Stat., 1921, secs. 822-825. The petitioner, a citizen of Louisiana, was duly appointed administrator for the obvious purpose of preventing removal of the cause to the federal court on the ground of …

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Mortgages -Assignment In Good Faith After Maturity Cuts Off Prior Latent Equities Jun 1932

Mortgages -Assignment In Good Faith After Maturity Cuts Off Prior Latent Equities

Michigan Law Review

M executed a negotiable note payable to the order of P, secured by a mortgage. After maturity, P assigned the note and mortgage without his indorsement to X for value. Y procured an assignment of these from X by fraud and in turn assigned them to Z, a purchaser without notice and for value. In Z's suit to foreclose the mortgage, X intervened, demanding the delivery of the same to himself. Held, Z's bona fide purchase cut off X's latent equity. Frank v. Brown, 255 Mich. 415, 238 N. W. 237 (1931).

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Railroads-Right To Drill For Oil Or Gas On Right Of Way Jun 1932

Railroads-Right To Drill For Oil Or Gas On Right Of Way

Michigan Law Review

A railroad had acquired a one-hundred-foot strip of land through a farm, the deed describing the land granted by metes and bounds, and "for railroad purposes only." For fifty years the defendant has continuously used the strip for railroad purposes. The plaintiff, who became owner of the farm and successor to whatever rights in the strip remained to his grantor, sought to enjoin the defendant from drilling for oil and gas in the strip. Held, that the railroad had purchased a fee simple absolute in the strip and was therefore entitled to develop its own minerals. Quinn v. Pere …

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Receivers - Liability For Corporate Franchise Taxes Accruing After Appointment Jun 1932

Receivers - Liability For Corporate Franchise Taxes Accruing After Appointment

Michigan Law Review

In a comment appearing in the May issue of the Review (30 MICH. L. REV. 1094), this writer considered the existing conflict of decisions on the question of a receiver's liability for corporate franchise taxes accruing during the period of receivership. The opposing views, as represented by In Re Detroit Properties Co., 254 Mich. 523, 236 N. W. 850 (1931), and Michigan Trust Co. v. Michigan (C. C. A. 6th, 1931) 52 F.(2d) 842, were compared and evaluated. Both decisions were based on the same Michigan statute (2 Comp. Laws 1929, sec. 10140). It was pointed out that the …

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Suretyship - Release Of Surety Jun 1932

Suretyship - Release Of Surety

Michigan Law Review

Defendant was the surety on a fidelity bond of the treasurer of plaintiff corporation. The principal wrongfully deposited money in X Bank. This bank was about to be closed by the state, but Y Bank proposed to take over the assets and liabilities of X Bank if plaintiff would leave on deposit with them $200,000 for four years without interest. Plaintiff notified two of defendant's officers, but they lacked authority to act, and, prompt action being necessary, the arrangement was concluded without defendant's concurrence. At the end of the four years plaintiff sued defendant for the interest lost by reason …

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Evidence-Corroboration In Criminal Cases Jun 1932

Evidence-Corroboration In Criminal Cases

Michigan Law Review

On the night of September 12, 1931, Mrs. Thalia Massie, while walking unescorted along a road near Honolulu, was forced into a car, taken to a lonely spot, and attacked by five young men. The five alleged attackers were placed on trial for rape. The jury was unable to reach a verdict and a mistrial was declared.

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Public Utilities -The Effect Of Recent Cases On The Control Of Public Utility Holding Companies Jun 1932

Public Utilities -The Effect Of Recent Cases On The Control Of Public Utility Holding Companies

Michigan Law Review

When the stock of a local utility company is owned by a holding company, difficult problems of regulation are presented to the state utilities commission. The commission can still control the rates which the local utility can charge, but, usually it cannot directly control the holding company which is a private business or is engaged in interstate commerce. Yet some control over the holding company is necessary for the effective control of the local utilities, and recent years have witnessed several attempts on the part of state commissions to obtain this control. So far they have not been entirely successful.

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Torts - Release Of One Responsible For Injury As Bar To Action Against Physician For Malpractice - Splitting Cause Of Action Jun 1932

Torts - Release Of One Responsible For Injury As Bar To Action Against Physician For Malpractice - Splitting Cause Of Action

Michigan Law Review

In an action brought for damages arising out of alleged negligent treatment of an injury, defendant pleaded a general release of the city of Minneapolis and other alleged joint tort-feasors whom plaintiff had first sued for damages resulting from the injury. In affirming the judgment for defendant on the pleadings, held, that the release barred the cause of action. Smith v. Mann (Minn. 1931) 239 N. W. 223.

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Michigan Law Review Editorial Board Jun 1932

Michigan Law Review Editorial Board

Michigan Law Review

Editorial Board Information

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Agency- Liability Of Principal For Torts Of Agent-Apparent Authority Jun 1932

Agency- Liability Of Principal For Torts Of Agent-Apparent Authority

Michigan Law Review

Defendant regularly delivered goods to plaintiff C. O. D. Lambert was employed by defendant to deliver such goods and collect for them, and for this purpose he was given blank re6eipts which he was authorized to fill out and sign upon being paid for the goods. The usual course of business was for Lambert to deliver to plaintiff's shipping clerk who signed the delivery bill, and then collect from plaintiff's cashier who was stationed in another room. Plaintiff's cashier never asked to see this delivery bill, but always took Lambert's word as to the amount due. For a period of …

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Torts - Recklessness - Liability Of Driver Under "Host-Guest" Statute Jun 1932

Torts - Recklessness - Liability Of Driver Under "Host-Guest" Statute

Michigan Law Review

Iowa Code, 1927, sec. 5026-b1, provides that no automobile owner or operator shall be liable for injuries received by a gratuitous occupant therein, except those caused by the driver's intoxication or reckless operation. Defendant, a rather inexperienced driver, became excited upon coming to a hill and pressed the accelerator instead of the brake, causing an accident which injured plaintiff, a gratuitous passenger in the car. The jury found that defendant had been driving recklessly. In reversing for error in instruction, the court held that recklessness may or may not include wilfulness or wantonness, but always implies no care, coupled with …

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Book Notes And Notices Jun 1932

Book Notes And Notices

Michigan Law Review

This department undertakes to list and, when possible, describe briefly current books on law and related subjects (e.g. economics, business, finance, sociology, government, etc.) which are of possible value to the legal profession.

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When Is A Corporation Insolvent?, Floyd Mathew Rett May 1932

When Is A Corporation Insolvent?, Floyd Mathew Rett

Michigan Law Review

There is general unanimity that as to real persons "insolvency" means the inability of a debtor to pay his obligations as .they fall due in the usual course of business - even though the value of his assets exceeds the aggregate of his liabilities. But the question - when is a corporation insolvent - the question to which this paper is devoted, is one with very varied answers. The answers may vary both with the nature of the corporation concerned and with the type of transaction involved. There are, however, two conventional definitions of corporate "insolvency," with occasional variations and …

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Corporations - Rights And Remedies Of Dissenting Stockholders Upon Consolidation And Merger May 1932

Corporations - Rights And Remedies Of Dissenting Stockholders Upon Consolidation And Merger

Michigan Law Review

Consolidation or merger of private corporations in recent years has been more and more frequent. One of the most engrossing problems when such unions take place is that of the rights and remedies of dissenting shareholders. The question which arises most frequently in cases of consolidation or merger, and that in the solution of which, paradoxicaIIy, our courts tend to expend the least amount of legal acumen, is whether the consolidation or merger of corporations operates to dissolve the constituent corporations in such a manner as materially to affect the rights of the shareholders in those corporations.

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Quasi-Contracts -Assumpsit For Use And Occupation Against A Trespasser In Modern Cases May 1932

Quasi-Contracts -Assumpsit For Use And Occupation Against A Trespasser In Modern Cases

Michigan Law Review

Perhaps the doctrine of stare decisis is sometimes deserving of severe criticism in its application to matters of substantive law; but the unfortunate results of uncritical adherence to precedent appear most clearly in regard to rules of procedure, where the demand for certainty cannot be justified by a supposed reliance of laymen on "settled" rules. The evils are aggravated where inconvenient decisions are not undermined or their effects evaded by the lawyer's typical process of "distinguishing'' cases. A forcible illustration is the firm refusal of most courts to extend quasicontractual relief to cases of use and occupation of land by …

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Contracts - Partial Illegality - Contract In Restraint Of Trade May 1932

Contracts - Partial Illegality - Contract In Restraint Of Trade

Michigan Law Review

The plaintiff contracted to transfer his law business, property used in connection therewith, and good will to the defendant and to refrain from practicing law within the state until the time set for payment of the balance of the contract price. The balance not having been paid at maturity, the plaintiff brought an action on the contract, alleging full performance on his part. The defendant demurred on the ground that the contract constituted an illegal restraint of trade under Oklahoma statutes which declare that agreements in restraint of trade upon selling the good will of a business are void to …

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Corporations-Service Of Process On Subsidiary To Bind Parent May 1932

Corporations-Service Of Process On Subsidiary To Bind Parent

Michigan Law Review

In a suit against the defendant the only service was that on a domestic subsidiary of the defendant. The defendant challenges the jurisdiction of the court on the ground that it has no "place of business" within the district. Held, whether the service was good raises a fact question; on the evidence the defendant so far ignored the separate entity of its subsidiary as to permit it to be served with process by service on its subsidiary as its agent. Gray v. Eastman Kodak Co., 53 F.(2d) 864 (1930).

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Evidence -The Possibility Of Incrimination In A State Jurisdiction Does Not Warrant The Assertion Of The Constitutional Privilege In Federal Proceedings May 1932

Evidence -The Possibility Of Incrimination In A State Jurisdiction Does Not Warrant The Assertion Of The Constitutional Privilege In Federal Proceedings

Michigan Law Review

On indictment for the refusal to give information requested by the authorized revenue agent, the appellee interposed a special plea averring that it would compel him to become a witness against himself in violation of the Fifth Amendment of the federal Constitution which reads, "nor shall any person be compelled to be a witness against himself." Held, the danger of incrimination in a state court was not grounds for asserting the constitutional privilege. United States v. Murdock, 284 U. S. 141, 52 Sup. Ct. 63, 76 L. ed. 83 (1931).

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Licenses - Revocability Of Executed License - Fraud On Licensee May 1932

Licenses - Revocability Of Executed License - Fraud On Licensee

Michigan Law Review

Plaintiff and defendant were owners of adjoining city lots. At plaintiff's suggestion they constructed a common driveway, half on each lot, defendant refusing, however, to exchange reciprocal deeds therefor. Plaintiff built his house and garage to conform to the location of the drive. After long-continued use, defendant blocked his half of the drive. Inasmuch as building a new drive entirely on his own land would necessitate expensive structural changes in his house and garage, plaintiff sought an injunction. Held, that plaintiff had only a license, revocable even though acted upon, and that defendant's revocation was not such a fraud …

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Federal Practise-Review Of Facts-Instance Of When Verdict Must Be Directed May 1932

Federal Practise-Review Of Facts-Instance Of When Verdict Must Be Directed

Michigan Law Review

This was a case in which a motion for a directed verdict was denied by the trial court on the ground that there was sufficient evidence to justify a submission of the case to the jury. The circuit court of appeals affirmed this, but on appeal to the Supreme Court it was held error. Southern Ry. Co. v. Walters (U.S. 1931) 52 Sup. Ct. 58.

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Negligence - Amusements - Assumption Of Risk By Football Spectators May 1932

Negligence - Amusements - Assumption Of Risk By Football Spectators

Michigan Law Review

The plaintiff, a woman who had paid to witness a football game played on defendant's field, stood near the boundaries of the playing field and was hurt when hit by a player tackled at the side-line. The evidence disclosed that the field was not roped off for the minor games, that there was no policing except that done by a few school officials, and that the spectators were not required to occupy seats in the stands. Reversing the lower court, the appellate tribunal held that, under these circumstances, there was no negligence, the opinion of the majority indicating that, if …

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Pleading - Last Clear Chance May 1932

Pleading - Last Clear Chance

Michigan Law Review

Plaintiff was riding a bicycle on a bridge. Defendant, towing a truck, sounded his horn and plaintiff drove to the left while defendant passed, but was struck by the truck. The judge charged that if defendant was travelling at an excessive rate of speed, and injury resulted from that cause, plaintiff could recover although negligent. Held, reversed, on the ground, among others, that the instruction as to least clear chance was not supported by any pleading. Steele v. Brada et al. (Iowa 1931) 239 N. W. 538.

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Sales - What Constitutes Notice Of Defective Title May 1932

Sales - What Constitutes Notice Of Defective Title

Michigan Law Review

A retail dealer in automobiles sold to the plaintiff a new and unregistered automobile. This car had previously been sold by the dealer to a third person, under a conditional sale agreement. This contract the dealer assigned to the plaintiff who recorded it, together with the assignment. Neither the conditional vendor nor the plaintiff took possession of the car which was left in the dealer's possession. Thereafter the dealer sold it to the defendant who purchased for value and without actual notice and took possession. The plaintiff sought to recover the car in an action of replevin. Held, the …

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