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Michigan Law Review

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Corporations - Dissolution - Distribution Of Assets Between Preferred And Common Stockholders Dec 1931

Corporations - Dissolution - Distribution Of Assets Between Preferred And Common Stockholders

Michigan Law Review

In periods of business depression, problems concerning the dissolution and liquidation of corporations, with the question of preference between the holders of the preferred and common stock, often become very acute. A recent case, presenting the question of preference from the aspect of unpaid dividends on preferred stock, is Penington v. Commonwealth Hotel Construction Corporation.

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Trusts - Statute Of Frauds - Part Performance Of Oral Trusts, Mark H. Harrington Dec 1931

Trusts - Statute Of Frauds - Part Performance Of Oral Trusts, Mark H. Harrington

Michigan Law Review

In some jurisdictions, where some equivalent to the seventh section of the English Statute of Frauds has not been enacted, an oral trust of land is enforceable. In others, it is held that the provisions requiring a writing in the case of conveyances of and contracts concerning interests in land forbid oral trusts of land. It is clear, however, that when the statute of frauds in force contains a provision requiring express trusts to be created or evidenced by writing, an oral agreement between grantor and grantee that the property conveyed should be held in trust can not be enforced …

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Bailment - Contest Between A Garage Man Claiming A Lien For Repairs And A Prior Chattel Mortgagee Dec 1931

Bailment - Contest Between A Garage Man Claiming A Lien For Repairs And A Prior Chattel Mortgagee

Michigan Law Review

K purchased an automobile, giving his note secured by a chattel mortgage on the car. P purchased the note. Subsequently, K took the car to the garage of D for repairs. D made the necessary repairs and held the car under claim of a lien. The note was defaulted and P replevied the car. Held, the mortgagor could not contract a debt giving rise to a lien superior to that of the mortgage without the consent of the mortgagee; hence, P recovered. Cleveland Auto Top & Trimming Co. v. American Finance Co. (Ohio 1931) 177 N.E. 217.

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Bills And Notes - Negotiability Of Note Authorizing Judgment Dec 1931

Bills And Notes - Negotiability Of Note Authorizing Judgment

Michigan Law Review

A note, payable ninety days after date, authorized an entry of judgment against the maker by the holder "at any time after the date thereof, without stay of execution." Held, that this authority destroyed the negotiability of the note because it was neither payable on demand nor at a fixed and determinable future time. Wooleyhan v. Green (Del. 1931) 155 Atl. 602.

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Corporations - Injunctive Relief Against Corporate Action Which Requires Unanimous Approval Dec 1931

Corporations - Injunctive Relief Against Corporate Action Which Requires Unanimous Approval

Michigan Law Review

A bill for an injunction to prevent the submission, at a stockholders' meeting, of a corporate by-law providing for extra dividends on stock owned by officers and employees, was maintained, on the ground that the proposed move was illegal and unauthorized by statute. Scott v. P. Lorillard Co. (N. J. Eq. 1931) 154 Atl. 515.

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Corporations - Power To Dispose Of Realty Dec 1931

Corporations - Power To Dispose Of Realty

Michigan Law Review

A cattle company, authorized by its charter to deal only in live stock, was in possession of three tracts of land. Upon a decision of the stockholders and directors to dissolve, two of these tracts were sold outright. The third, being near a large city, was subdivided into city lots with streets, sidewalks, water, lights, etc., for the purpose of a more advantageous sale. This involved the expenditure of considerable sums of money, and at the end of four years some of the lots were still unsold. The corporation became insolvent and the receiver refused to pay the money borrowed …

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Corporations - Rescission Of Contract Procured Through Fraud Dec 1931

Corporations - Rescission Of Contract Procured Through Fraud

Michigan Law Review

P purchased shares of stock in S Company through the fraud and misrepresentation of his agents in collusion with the agents of the S Company. Upon discovery of the fraud, P tendered back a number of shares equal to the number received by himself and his innocent associates. In the meantime, P had resold part of the shares at a higher price. Held, P must also tender the profit resulting from the resale and subsequent purchase of equivalent shares in a fallen market, together with any dividends paid on stock and interest from date of payment. Marr v. Tumulty …

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Crimes - Burglary - Structures Subject To Dec 1931

Crimes - Burglary - Structures Subject To

Michigan Law Review

The defendant broke and entered a frame poultry house. Held, the indictment for burglary was sufficient under the statute denouncing the breaking and entering of uninhabited dwelling houses or other buildings. Stover v. State, 37 Ohio App. 213, 174 N.E. 613 (1930).

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Crimes-Withdrawal Of A Plea Of Guilty Dec 1931

Crimes-Withdrawal Of A Plea Of Guilty

Michigan Law Review

Defendant was charged with the violation of the prohibition law, to which he pleaded guilty. About two months after this plea was in, he filed a motion to withdraw it, and substituted one of not guilty. In support of this motion he set up that he had not been advised of his constitutional rights to have counsel; that the arresting officers told him the case would be heard in a federal court, and his punishment would be light; and that he was unaware of the liquor being in his car (which claim was subsequently disproved by the evidence). The motion …

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Easements - Ways Appurtenant- Requirement Of Contiguity Dec 1931

Easements - Ways Appurtenant- Requirement Of Contiguity

Michigan Law Review

The respondent, in a proceeding to register title, claimed a right of way appurtenant over the land of the petitioner. The tracts in question were separated by a strip of plowed land belonging to a third party and it was argued that, since one terminus of the way did not touch on the respondent's land, the claim should be denied. Held, however, that the way was appurtenant to the close even though the servient estate was not adjacent to the dominant. Jones v. Stevens (Mass. 1931), 177 N.E. 91.

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Insurance - Estoppel - Parol Evidence Rule Dec 1931

Insurance - Estoppel - Parol Evidence Rule

Michigan Law Review

The plaintiff sued on a fire policy. The insurer defended on the ground that plaintiff had violated a condition of the policy which provided that there would be no liability if loss occurred while the property was encumbered by a chattel mortgage, unless the company's written consent thereto was endorsed on the policy. Plaintiff sought to estop the defendant as to this defense because of insurer's agent's assurances, given before and after the issuance of the policy, that the policy would permit him to encumber the goods. Held, defendant's demurrer to plaintiff's replication should be sustained because of plaintiff's …

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Mechanics' Liens - Property Subject To Liens - Easements Dec 1931

Mechanics' Liens - Property Subject To Liens - Easements

Michigan Law Review

The Ford Motor Company held a right of way across certain railroad tracks from a street to its plant, and contracted with B to build an underpass and grade separation from the street and under the tracks. Before full performance, the Ford Company discharged B and completed the work itself. Numerous materialmen claimed mechanics' liens for supplies furnished B. Held, the right of passage was an easement appurtenant to the Ford plant and not lienable as such, because severance from the dominant estate would extinguish the easement. A lien on the underpass as a building on the land of …

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Negligence - Liability Of Manufacturers To Third Parties Dec 1931

Negligence - Liability Of Manufacturers To Third Parties

Michigan Law Review

Plaintiff was engaged in selling bottled beverages at a roadside stand. While she was attending to her duties, a bottle filled with carbonated soda pop exploded, throwing glass particles into her eye and eventually causing the loss of sight. Plaintiff proved that the bottle was defective, that proper inspection would have revealed the defect, and that neither the bottle manufacturer nor the bottler had made proper inspection. Held, both the manufacturer and the bottler are liable to plaintiff for injuries sustained. Smith v. Peerless Glass Co., 251 N. Y. S. 708 (1931).

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Torts - Negligence - Liability For Injuries Caused By Fright Dec 1931

Torts - Negligence - Liability For Injuries Caused By Fright

Michigan Law Review

Plaintiff's testatrix, a passenger in an automobile which collided with a machine negligently operated by defendant, suffered no serious physical injuries from the collision. However, "within a few minutes after the accident, she stepped from the automobile and started to write down the defendant's name and license number," but, due to her fright, she fainted and fell, fractured her skull, and died. Judgment for plaintiff was affirmed in the appellate division. The New York court of appeals held that the judgment should be affirmed, and upheld the trial court in its refusal to instruct the jury that it must find …

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Torts - Recovery For Injuries Caused By Fright Dec 1931

Torts - Recovery For Injuries Caused By Fright

Michigan Law Review

The manager of one of defendant's branch stores, in filling an order for a loaf of bread, delivered a dead rat to the plaintiff. The plaintiff incurred serious physical injuries as a result of the fright and shock. In plaintiff's suit against the defendant company it was held that there could be a recovery for physical injuries caused by fright alone. Great Atlantic and Pacific Tea Co. v. Roch (Md. 1931) 153 Atl. 22.

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Trusts - "Active" Trusts Dec 1931

Trusts - "Active" Trusts

Michigan Law Review

A will gave the residue of the testator's realty and personalty to his wife for life, with power to draw on so much of the principal for her support as she and Rubie Tracy should deem necessary. In a later clause, the testator recited his desire that his wife "have assistance in taking care of the property hereinabove bequeathed and devised to her," and appointed Rubie Tracy, testator's wife, and a third person to be trustees for the wife of whatever she received under the will. Held, an active trust. Bunker v. Bunker et al. (Me. 1931) 154 …

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A Casebook On Corporation Finance Dec 1931

A Casebook On Corporation Finance

Michigan Law Review

A review of CASES AND MATERIALS ON THE LAW OF CORPORATION FINANCE. By Adolf A. Berle, Jr.

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Divorce - Domicil - Recognition Of Foreign Decrees, Florence K. Frankel Dec 1931

Divorce - Domicil - Recognition Of Foreign Decrees, Florence K. Frankel

Michigan Law Review

The New York Court of Appeals has re-emphasized some well-established principles of divorce jurisdiction in the recent case of Fischer v. Fischer. In a suit involving the validity of a second marriage, W proved a Nevada divorce from her first husband, a citizen of New York, who had been served in New York but had not appeared to defend the litigation. The court denied recognition to the Nevada decree because W's residence in Nevada, while it conformed with the statutory requirements of that forum, was proved to have been acquired solely for the purpose of securing a divorce. The …

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Evidence - Privileged Communication Dec 1931

Evidence - Privileged Communication

Michigan Law Review

In a suit for divorce on the ground of adultery, a Luthern clergyman refused to testify concerning a disclosure made to him in his religious capacity by the defendant husband, on the ground that it was a privileged communication under the Minnesota statute. The district court adjudged him in contempt of court. Upon certiorari to the supreme court of Minnesota, held, the communication was privileged, and the order was reversed. In re Swenson (Minn. 1931) 237 N.W. 589.

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The Principal's Warranty And Offset Claims Against The Creditor As Defenses To The Surety, Victor Levine Dec 1931

The Principal's Warranty And Offset Claims Against The Creditor As Defenses To The Surety, Victor Levine

Michigan Law Review

When a buyer seeks to purchase goods on credit, the seller often refuses to make the sale unless the buyer procures some third person to become liable for the price; and the seller also exacts the privilege of suing either the buyer or the third person or both in the event that payment is not made on the date the price falls due. In a three-party transaction of this sort, the buyer, after the goods are delivered, is commonly called the principal, the seller the creditor, and the third person the surety.

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Conflict Of Laws - Mistake Of Foreign Law As Mistake Of Fact Dec 1931

Conflict Of Laws - Mistake Of Foreign Law As Mistake Of Fact

Michigan Law Review

Plaintiff sued in Ohio to set aside a deed of Ohio land given by the plaintiff, a resident of that state, in exchange for Texas lands deeded by the defendant who was also a resident of Ohio, for mistake as to defendant's title to the Texas land resulting from a Texas statute of which both parties were ignorant at the time of the transaction. Held, a mistake of foreign law is a mistake of fact authorizing equitable relief. Miller v. Bieghler, 123 Ohio St. 227, 174 N.E. 774 (1931).

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Contracts - Illegality - Contract To Relinquish Custody Of Child Nov 1931

Contracts - Illegality - Contract To Relinquish Custody Of Child

Michigan Law Review

The plaintiff declared on a contract between her father, Thomas Smith, and J. F. and A. T. Mulkey, in which the parent contracted to relinquish all control over the plaintiff, a minor, in consideration for which J. F. and A. T. Mulkey agreed to adopt the child and leave their property to her upon the death of the survivor. The contract was fully performed by the child's parent, but J. F. and A. T. Mulkey failed to adopt the child, and made no provision for her in the distribution of their property. In a suit by the plaintiff at the …

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Procedure - Service Of Process - Jurisdiction Conferred By Consent Nov 1931

Procedure - Service Of Process - Jurisdiction Conferred By Consent

Michigan Law Review

Plaintiff, a resident of England, and defendant, a resident of New York, entered into a contract for the sale and delivery of zinc. By a clause in the contract the parties agreed that all differences arising thereunder should be arbitrated at London pursuant to the arbitration law of Great Britain. Differences arose, and the plaintiff requested the defendant in New York to concur in the selection of an arbitrator, serving notice that, in the event of failure so to do, application would be made for appointment of one as provided by statute. This notice was ignored, and a form of …

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Report On Penal Institutions, Probation, And Parole, Arthur Evans Wood Nov 1931

Report On Penal Institutions, Probation, And Parole, Arthur Evans Wood

Michigan Law Review

This Report consists of three main parts. The first is called the Commission's Report, and is signed by that body. The second, called the Report of the Advisory Committee to the Commission, is the work of a group which includes many of the most distinguished penologists of the country. The two reports cover much the same ground, they are about the same length, and, with one or two important exceptions, the recommendations and conclusions are the same. The third part is a brief statement entitled Police Jails and Village Lockups, prepared and written by Dr. Hastings H. Hart.

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Crimes - Right To Bail Of Prisoner Held For Extradition Nov 1931

Crimes - Right To Bail Of Prisoner Held For Extradition

Michigan Law Review

The prisoner, who was wanted on an indictment in Iowa, had been apprehended in Minnesota under a rendition warrant issued by the governor of that state upon the requisition of the governor of Iowa. Habeas corpus proceedings were brought in the lower court to test the validity of the warrant, but the prisoner was remanded to the custody of the sheriff. He appealed this decision, and made application to fix bail pending the appeal. Held, it is doubtful if the court has the power to admit to bail after the governor's warrant has been issued, and even if the …

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Wills - Executor's Right To Deduct From A Legacy A Debt Due The Estate But Barred By The Statute Of Limitations Nov 1931

Wills - Executor's Right To Deduct From A Legacy A Debt Due The Estate But Barred By The Statute Of Limitations

Michigan Law Review

The decedent left his estate, by will, equally to several persons, one of whom had owed to the testator a debt which was now barred by the statute of limitations so that the executor could not collect it by suit. The executor claimed a right to collect this debt by deducting it from the share of the personal property of the estate given the debtor. The court held that the debt, though barred by the statute of limitations, was still in fairness and good conscience due to the estate and that the executor might deduct it from the share given …

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Book Notes And Notices Nov 1931

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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Reports Of The National Commission On Law Observance And Enforcement Nov 1931

Reports Of The National Commission On Law Observance And Enforcement

Michigan Law Review

The article section of this issue of the Law Review is devoted to a consideration of the work of the National Commission on Law Observance and Enforcement, commonly called the Wickersham Commission.

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Preliminary Report On Observance And Enforcement Of Prohibition And The Report Supplemental Thereto, Edson R. Sunderland Nov 1931

Preliminary Report On Observance And Enforcement Of Prohibition And The Report Supplemental Thereto, Edson R. Sunderland

Michigan Law Review

The Commission on Law Observance and Enforcement was organized on May 28, 1929. Within six months it issued a Preliminary Report on Observance and Enforcement of Prohibition, under date of November 21, 1929, and shortly thereafter issued a Report supplemental thereto.

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Report On Police, John Barker Waite Nov 1931

Report On Police, John Barker Waite

Michigan Law Review

The Report begins: "The general failure of the police to detect and arrest criminals . . . has caused a loss of public confidence in the police of our country. For a condition so general there must be some universal underlying causes to account for it."

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