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Michigan Law Review

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Mortgages - Foreclosure - Right To Receiver Of Rents And Profits Apr 1932

Mortgages - Foreclosure - Right To Receiver Of Rents And Profits

Michigan Law Review

The plaintiff held a large mortgage on apartment property. Upon default in the payment of principal, interest, and taxes a bill of foreclosure was filed against the mortgagor and her grantees who had taken subject to the mortgage. A clause in the mortgage authorized the appointment of a receiver to collect the rents and profits upon default. After hearing, the mortgagee was appointed receiver on the theory that non-payment of taxes constituted waste. Held, that the appointment was unauthorized. Union Guardian Trust Co. v. Rau, 255 Mich. 324, 238 N. W. 166 (1931).

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Patents - Option Of The Court To Permit Contempt Proceedings Or To Require A New Suit Apr 1932

Patents - Option Of The Court To Permit Contempt Proceedings Or To Require A New Suit

Michigan Law Review

A final injunction was issued by the federal district court of Massachusetts against A, a Michigan corporation. The terms of the injunction were that A should not make, use, or sell lasts, or any colorable imitation thereof, embodying the invention covered by certain enumerated claims belonging to the present complainant. In a subsequent term of court the complainant alleged a violation of the injunction and brought contempt proceedings against A in the district court. The alleged infringement consisted in the manufacture and sale of a device which was slightly changed in form from that which the defendant had made prior …

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Patents - Recovery Of Profits In Contempt Proceedings Apr 1932

Patents - Recovery Of Profits In Contempt Proceedings

Michigan Law Review

The facts of this case are stated in the preceding note. The complainant sought to recover in the contempt action the profits of the infringement subsequent to the injunction decree. The circuit court of appeals refused recovery. Held, the decree of the circuit court of appeals should be reversed; profits from the sale of the infringing article are properly an element of the contempt fine. Krentler-Arnold Hinge Last Co. v. Leman (U. S. Feb. 15, 1932) Adv. Op. No. 332. (Reversing the decision in (C. C. A. 1st, 1931) 50 F.(2d) 699).

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A Valuable Handbook, John B. Waite Apr 1932

A Valuable Handbook, John B. Waite

Michigan Law Review

A review of VOLD ON SALES. (Hornback Series) By Lawrence Vold.

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Book Notes And Notices Apr 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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English Criminal Prosecutions, John B. Waite Apr 1932

English Criminal Prosecutions, John B. Waite

Michigan Law Review

A review of CRIMINAL JUSTICE IN ENGLAND, A STUDY IN LAW ADMINISTRATION. By Pendleton Howard.

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Matrimonial Domicil And Marital Rights In Movables, Arthur Leon Harding Apr 1932

Matrimonial Domicil And Marital Rights In Movables, Arthur Leon Harding

Michigan Law Review

The American decisions in Conflicts of Laws relating to the rights acquired by one spouse in the property of the other by virtue of the fact of marriage stand as a monument to Joseph Story . Almost without exception the cases discussed hereafter have been decided on the basis of his thorough analysis of the law of the Pandects and the eighteenth century civilians. Even where his principles have not been approved, the courts have departed from them only after real and serious consideration. This fact, kept in mind, greatly simplifies the study of the cases themselves.

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President Hoover's Recommendations - Waiver Of Right To Accusation By Grand Jury Indictment Apr 1932

President Hoover's Recommendations - Waiver Of Right To Accusation By Grand Jury Indictment

Michigan Law Review

In Illinois also the time between arrest and indictment is considerable. According to the figures of the Illinois Crime Survey the median time after preliminary hearing before indictment of persons who pleaded guilty ranged from thirteen days in Chicago to thirty-seven days in other parts of the state. An average of another two days is added by the time between arrest and preliminary hearing. In Missouri, too, the time interval is long. It seems reasonable to assume, therefore, that in the federal courts the time between arrest and indictment is at least as long, especially in districts where grand juries …

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Corporations - Corporate Reorganization Under Charter Agreement -Validity Of Enabling Statutes Apr 1932

Corporations - Corporate Reorganization Under Charter Agreement -Validity Of Enabling Statutes

Michigan Law Review

That reorganization is vexatious, frequently long drawn out and costly, is universally conceded. In the absence of statutory provisions, the only known judicial process whereby a court may set a reorganization in motion is a foreclosure and sale, or sale by court decree in an equity receivership. In most cases the real and only purpose of a reorganization is to work out a capital structure which the business of the corporation will support, hence, the sale under foreclosure or by court decree is a device rather than an independent end. As a result, much confusion and uncertainty exist under the …

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Criminal Law - Federal Removal Proceedings - Conclusiveness Of The Indictment Apr 1932

Criminal Law - Federal Removal Proceedings - Conclusiveness Of The Indictment

Michigan Law Review

A vexatious question, and one which frequently arises in proceedings for removal from one federal district to another for trial, is to what extent the courts will go in weighing the force of the evidence against the accused. The government, when asking removal, presents to the court or commissioner a copy of the indictment found in the district to which removal is asked, and frequently rests on this, after giving evidence that the defendant is the party named in the indictment. The defendant, on the other hand, usually presents a mass of evidence, relevant and irrelevant, in an endeavor to …

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Banks And Banking - Misappropriation Of Trust Funds - Liability Of Bank Apr 1932

Banks And Banking - Misappropriation Of Trust Funds - Liability Of Bank

Michigan Law Review

Committee for incompetent deposited checks payable to him as such committee in the defendant bank to the credit of his individual account. The committee's account was entirely dissipated, but, so far as the facts appear in the opinion, the defendant bank at no time had any knowledge of the use to which the money was put. The committee was removed and the substituted committee sued the defendant bank for aiding the original committee in the diversion of the funds. Held, that it was the duty of the defendant bank to inquire whether the committee had authority to deposit the …

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Bills And Notes - Waiver Of Presentment And Notice Of Dishonor Apr 1932

Bills And Notes - Waiver Of Presentment And Notice Of Dishonor

Michigan Law Review

The defendant was an accommodation indorser on a demand note without interest. Almost three years after date of the note the holder notified defendant that repeated attempts had been made to secure payment from the maker, but without avail, and that the defendant was expected to pay. This resulted in a conversation between holder and defendant in which defendant indicated that it was not convenient for him to pay the note, and some discussion occurred as to the defendant's giving collateral security and an effort on his part to get some protection from the maker, the holder allowing the note …

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Corporations -Apportionment Of Part Payment Of Purchase Price Of Stocks Bought In A Unit Apr 1932

Corporations -Apportionment Of Part Payment Of Purchase Price Of Stocks Bought In A Unit

Michigan Law Review

The defendant corporation entered into contracts for the sale of stock in blocks of three shares, two shares of first preferred at fifty dollars each par value and one share of second preferred at fifty dollars par value, the three shares to be sold in a unit for one hundred and thirty-five dollars. The contract contained an agreement that after six monthly payments had been made on the stock, upon default of the remaining payments the corporation would issue certificates of indebtedness for the amount paid in. In the dissolution of the corporation and the distribution of the assets, the …

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Corporations - Issue Of Stock Apr 1932

Corporations - Issue Of Stock

Michigan Law Review

The Eastman Kodak Company, a New Jersey corporation, entered into a contract with Vereinigte Fabriken Photagraphischer Papiere of Dresden, a German corporation, whereby it was agreed that the German company would discontinue the manufacture and sale of "Collodion papers" in North America, Great Britain, France, Spain, and Portugal and that those territories would be given over exclusively to the Eastman Company for the manufacture and sale of this paper. In consideration of this concession the Eastman Company issued 28,450 shares of its no par stock to the German company. This stock was later seized by the United States Alien Property …

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Corporations - Rights Of Bondholder Under A Trust Indenture Apr 1932

Corporations - Rights Of Bondholder Under A Trust Indenture

Michigan Law Review

Plaintiff was the owner of bonds issued by the defendant real estate corporation which were secured by real estate mortgages in the control of a trustee under a trust indenture to which reference was made in the bonds. The indenture provided, "no holder . . . shall have any right to institute any suit, action or proceeding at law or in equity or take any other steps or proceedings for any remedy hereunder," unless 25 per cent of the holders shall have requested the trustee to exercise the powers granted and the trustee thereafter fails or refuses to proceed. Plaintiff, …

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Pledge - Liability Of Pledgee For Depreciation Of Corporate Stock Apr 1932

Pledge - Liability Of Pledgee For Depreciation Of Corporate Stock

Michigan Law Review

The plaintiff brought suit to recover the value of a promissory note for which the defendant had pledged corporate stock as collateral security. Defendant filed a counterclaim for the depreciation in value of the stock between the time he had requested the plaintiff to sell and the time of bringing the suit. Held, that plaintiff was not liable for the depreciation of the stock since the pledgor had made no offer to pay pledgee such sum as would together with the price for which the stock could have been sold satisfy the note. People's Nat. Bank & Trust Co. …

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Private Carriers - Contracts Limiting Liability For Negligence Apr 1932

Private Carriers - Contracts Limiting Liability For Negligence

Michigan Law Review

Defendant contracted to haul cars belonging to a circus under a stipulation that it was not to be liable for injury or damage resulting from the negligence of its employees. Plaintiff, who had made an employment contract with the circus, releasing them and the defendant from liability for injury to him, was injured in a collision caused by the negligence of the defendant's servant. Held, the defendant could not contract against liability for injury caused by its wilful and wanton negligence and was therefore liable. Sabol v. Chicago & N. W. Ry. (Mich. 1931) 238 N. W. 281.

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Trusts -- Self-Dealing Of The Trustee -- Right To Look Through The Corporate Entity Apr 1932

Trusts -- Self-Dealing Of The Trustee -- Right To Look Through The Corporate Entity

Michigan Law Review

One Northrop was appointed by the court as guardian, receiving $2,500 which he deposited in defendant bank of which he was the president, the general manager, and of which he was in complete control. Subsequently he exchanged this deposit for a mortgage owned by the bank. The bank became insolvent, and plaintiff, as substituted trustee, brought this action to have a preference adjudged out of the bank's assets in favor of the ward. Held, plaintiff could ignore the mortgage transaction but could only claim as a general creditor of the bank. Ottawa Banking and Trust Co. v. Crookston State …

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Limitation Of Diversity Jurisdiction In Cases Affecting Foreign Corporations, Gustavus Ohlinger Apr 1932

Limitation Of Diversity Jurisdiction In Cases Affecting Foreign Corporations, Gustavus Ohlinger

Michigan Law Review

On February 29, 1932, President Hoover sent to the Senate and House of Representatives a message recommending that the jurisdiction of federal courts based on diversity of citizenship be modified by "providing that where a corporation, organized under the laws of one State, carries on business in another State it shall be treated as a citizen of the State wherein it carries on business as respects suits brought within that State between it and the residents thereof arising out of the business carried on in such State."

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Corporations - Insolvency - Statutes Giving Priority To Wage Claims Apr 1932

Corporations - Insolvency - Statutes Giving Priority To Wage Claims

Michigan Law Review

Statutes giving liens or preferences to wage claims upon the insolvency of corporations are found among the laws of many states. In reference to the priority established, these statutes can be divided into three classes: those specifically stating that the lien or preference created shall be prior to all other claims not secured by specific liens, those specifically stating that wage claims shall be superior to all other claims upon the property of the corporation, including mortgages, and those making wage claims a lien or preferred debt to be paid "before any other debt or debts." Under this last type …

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Constitutional Law -Is Redistricting Of A State For Congressional Elections An Exercise Of The Lawmaking Power Of The State? Apr 1932

Constitutional Law -Is Redistricting Of A State For Congressional Elections An Exercise Of The Lawmaking Power Of The State?

Michigan Law Review

The governor of Minnesota vetoed an act of the legislature dividing the state into congressional districts in accordance with the latest re-apportionment of the House of Representatives (46 Stat. 21, 26). Thereupon the state house of representatives by resolution directed the secretary of state to enroll the bill as a law. In an action started to test the validity of the law, held, Art. 1, Sec. 4 (1) of the Constitution of the United States provides that, "The time and place of holding elections for senators and representatives shall be prescribed in each state by the legislature thereof; but …

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Trial Practice - Questioning On Voir Dire As To Relation To Insurance Company Apr 1932

Trial Practice - Questioning On Voir Dire As To Relation To Insurance Company

Michigan Law Review

Plaintiff's counsel was permitted, over the objection of defendant's counsel, to ask on voir dire examination whether the jurors or the members of their families were stockholders in any insurance company. Held, proper under the circumstances, there being no showing of want of good faith, or persistent course or effort to impress on the jury that the defendant's liability was insured. Raines v. Wilson (Iowa, 1931) 239 N. W. 36.

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An Important Study Of The Interstate Commerce Commission Apr 1932

An Important Study Of The Interstate Commerce Commission

Michigan Law Review

A review of THE INTERSTATE COMMERCE COMMISSION - A STUDY IN ADMINISTRATIVE LAW AND PROCEDURE. By I. L. Sharfman

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Bills And Notes-Holders In Due Course-Good Faith Taker Apr 1932

Bills And Notes-Holders In Due Course-Good Faith Taker

Michigan Law Review

The plaintiff bank sued the defendant maker on his promissory note which with several others had been given as collateral by the payees for a loan made to them by the bank. The defendant alleged fraud and that the bank did not take in good faith as required by the Uniform Negotiable Act, Gen. Laws 2921 (N. I. L., sec. 52) because of the following circumstances: inconsistent property valuation reports, knowledge of the slight financial responsibility of one of the makers of the note, insufficient investigation of financial status of one of the guarantors and the lack of a financial …

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Corporations - Right Of Pledgee Of Stock To Dividends Under The Uniform Stock Transfer Act Apr 1932

Corporations - Right Of Pledgee Of Stock To Dividends Under The Uniform Stock Transfer Act

Michigan Law Review

The plaintiff was the pledgee of stock in the defendant corporation, the record title to the stock still being held in the name of the pledgor. The defendant, without notice of this assignment, voluntarily liquidated, giving the record holder a check both for the normal dividend on the stock, which had not been paid for the current year, and for his supposed interest in the distribution of the capital assets. This action was instituted by the pledgee to make the defendant account for the money paid over to the pledgor. The applicable statute is section 3 of the Uniform Stock …

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Trusts - Tracing Of Assets - Preference Apr 1932

Trusts - Tracing Of Assets - Preference

Michigan Law Review

Public funds were unlawfully deposited in the insolvent bank. At the time the bank closed the cash in its own vault was less than the amount of public funds deposited but it did have, at the time of closing and at all times before, deposits in correspondent banks which, taken with the cash in its own vault, exceeded the amount of the public funds unlawfully deposited. Held, that the unlawful deposit of the public funds, the bank knowing them to be public funds, created a trust of those funds in the hands of the bank, which trust was impressed …

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Constitutional Law - Extent Of State Police Power In Protection Of Public Health Mar 1932

Constitutional Law - Extent Of State Police Power In Protection Of Public Health

Michigan Law Review

An Illinois statute prohibited the manufacture or sale of milk to which had been added any fat or oil other than milk fat. The defendant was engaged in manufacturing for sale outside of the state a product composed of skimmed milk and cocoanut oil which was not deleterious to health in any way. When it was sought to recover the penalty imposed by the statute for its violation, it was claimed that the law was unconstitutional in that it deprived the defendant of property without due process of law. The court held that the statute was an invalid exercise of …

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Equity-Injunctions - Enjoining Police Officers Mar 1932

Equity-Injunctions - Enjoining Police Officers

Michigan Law Review

The plaintiff asked for a temporary injunction restraining the defendant sheriff from raiding or otherwise interfering with a "marathon" dance contest conducted in a regularly licensed dance hall. No statute making such contests illegal was cited by the defendant. There was considerable evidence that the sheriff, who had formerly approved of the marathon, was using his authority to extort $5,000 from the plaintiff. Held, equity can restrain officers from extra-judicial condemnation by physical means, such as raids and continuous trespasses destroying the plaintiff's business, on the mere claim that the criminal law may be violated. Ruty v. Huelsenbeck (N. …

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Future Interests - Devise Of Life Estate With Superadded Power To Sell Fee Mar 1932

Future Interests - Devise Of Life Estate With Superadded Power To Sell Fee

Michigan Law Review

Testator gave his wife a life estate and added, "and I further empower her to sell any and all of either my personal real or mixed estate whenever she may think it to her interest to do so," with a limitation over to his son of whatever property remained of his estate at the time of the widow's death or remarriage. The widow conveyed the estate in fee to her daughter for valuable consideration. On the widow's death the son, as remainderman, brought ejectment against the daughter. Held, that the action did not lie since the widow had been …

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Insurance - Accidental Means - Unlawful Conduct- Public Policy Mar 1932

Insurance - Accidental Means - Unlawful Conduct- Public Policy

Michigan Law Review

Insured was shot by police officers while attempting to escape in a car which he and his companions had just stolen. The officers had no specific intent to kill, but did intend to make the arrest and were shooting to frighten the felons into stopping. The policy contained no specially exempted risks, but did provide for additional indemnity if the insured died of injuries sustained solely through "external, violent, and accidental means." The face value of the policy was not contested, but the insurer contested the right to the additional sum. Held, the death was not caused by accidental …

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