Digital Commons Network^™

New Values Under Old Oil And Gas Leases: Helium, Who Owns It?, C. Douglas Kranwinkle

Michigan Law Review

It is a well known maxim among oil and gas lawyers that "a producing well always clouds a title and a dry hole cures it." A variation of that maxim might be applied to producing wells which may or may not include, as by-products of the primary mineral, other substances that are extractible and valuable. Of course, once production of by-products begins, conveyancers give special attention to these resources, but many instruments executed before such development may be phrased in general terms without specific mention of substances unimportant when the conveyance was made. Even a recent instrument may lack specificity …

Voluntary Payments To Widows Of Corporate Executives: Gifts Or Income?, Paul A. Rothman

Michigan Law Review

The solicitude of hardhearted corporations for the widows of corporate executives has given rise to an abundance of cases involving the question whether payments to these widows constitute gifts or income. In the cases to be considered in this comment, payments are made by the corporation to the decedent's widow on a purely voluntary basis. In the typical situation, the board of directors adopts a resolution eulogizing the decedent and authorizing payments to his widow in recognition of his long and faithful service. In most cases, these payments are measured by the decedent's salary and continue for periods ranging from …

The Extraterritorial Effect Of Foreign Exchange Control Laws, F. David Trickey

Michigan Law Review

Article VIII section 2(b) of the International Monetary Fund Articles of Agreement makes "exchange contracts" which are contrary to approved foreign exchange regulations of members "unenforceable" and provides that member nations may further agree upon measures to enforce each other's foreign exchange laws. The recent New York Court of Appeals decision in Banco do Brasil, S.A. v. A. C. Israel Commodity Co. illustrates the serious shortcomings of IMF provisions for enforcing foreign exchange controls. The case also suggests that general conflict of laws rules can be used to effectuate the policies underlying exchange control laws.

Civil Procedure- Venue-Effect Of Contract Provision Fixing Venue As To Future Litigation, Robert C. Bonges

Michigan Law Review

Defendants, residents of Harris County, Texas, executed in Harris County a conditional sale contract to purchase a food freezer from plaintiff's assignor. One of the contract provisions was that any suit on the contract was to be tried in Travis County, Texas. Plaintiff subsequently brought an action on the contract in Travis County, and defendants, contrary to their agreement, requested the trial court to transfer the action to a court of proper jurisdiction in Harris County, which was the proper county for suit under the applicable venue statute. In response, plaintiff argued that, since the contract created an obligation performable …

Constitutional Law-Federal Criminal Procedure-Right To Counsel Under Section 2255 Of The Judicial Code, Gerald J. Laba

Michigan Law Review

Petitioner, seeking to attack a conviction for illegal possession of narcotics, was granted leave to sue in form a pauperis under 28 U.S.C. section 2255, but his request that counsel be appointed for him was denied. Petitioner's section 2255 motion to vacate judgment was denied. Petitioner then entered a second section 2255 petition alleging basically the same errors but adding that the court had erred in not appointing counsel for his first petition. The second motion was denied without a hearing on the ground that it was "the second or successive motion for similar relief .... " Petitioner appealed in …

Constitutional Law-Search And Seizure-Retrospective Application Of Mapp V. Ohio, Timothy D. Wittlinger

Michigan Law Review

On February 15, 1960, the Louisiana Supreme Court affirmed petitioner's conviction for simple burglary. The conviction was obtained through the use of evidence unlawfully seized from petitioner in violation of the fourth amendment of the United States Constitution. In December 1961 the District Court for the Parish of West Feliciana denied petitioner's writ of habeas corpus filed after the Supreme Court decision of Mapp v. Ohio, which forbade introduction at state trials of evidence seized by state officers in violation of the fourth amendment. The denial of the writ was affirmed by the Louisiana Supreme Court, and certiorari was …

Cooper: Writing In Law Practice, John L. Fitzgerald

Michigan Law Review

A Review of Writing in Law Practice. By Frank E. Cooper

Periodical Index, Michigan Law Review

Michigan Law Review

This index includes articles, comments and some of the longer notes which have appeared in leading law reviews since the publication of the last issue of this Review.

Evidence-Admissibility And Weight Of Photographs, James W. Collier

Michigan Law Review

In a prosecution for fellatio, the people's only witness was a woman who testified that she had participated in the alleged activity with the defendant. Her testimony also verified for introduction a motion picture purporting to show the alleged violations. Defendant was convicted on the basis of this evidence. On appeal, held, reversed. A conviction cannot be sustained on the basis of an accomplice's uncorroborated testimony; and the film, although properly admitted, could not supply the necessary corroboration, since a determination of its accuracy must rely upon the accomplice's foundation testimony. People v. Bowley, 59 Cal. 2d …

Taxation-Federal Tax Liens-Section 6321 Of The Internal Revenue Code As Basis For Injunction Binding Assets Of Foreign Branch Of American Bank, Gerald J. Laba

Michigan Law Review

The Commissioner of Internal Revenue issued jeopardy assessments against the taxpayer, Omar, S.A., a Uruguayan corporation. To avoid payment, Omar began to liquidate its American-held assets by transferring receipts out of the country. Pursuant to its statutory right, under section 6321 of the Internal Revenue Code of 1954, to impose a lien upon all property of a delinquent taxpayer, the United States brought suit against Omar and various New York banks in the domestic and foreign branches of which Omar's funds were deposited. The district court granted a preliminary injunction restraining certain of the banks from transferring any property whether …

Torts-Joint Tort-Feasors--Release Of One Not Release Of All, Karen M. Swift

Michigan Law Review

Plaintiff, a woman who had been struck by a taxicab, underwent treatment by defendant-physician. After eight months under defendant's care, she accepted his assurances that she would fully recover, and executed a general release in favor of the taxi driver. Plaintiff subsequently discovered, however, that the defendant had been negligent in his treatment of her both before and after the execution of the release. In a malpractice action before the Supreme Court of New York judgment was entered in favor of the plaintiff, and defendant appealed. The Appellate Division dismissed the original complaint, holding that the general release discharging the …

Canon Of Professional Ethics-Cooperation In Preparation Of News Articles As Advertising In Violation Of Canon 27, Joseph F. Mcdonald

Michigan Law Review

Two recent decisions were the first to construe the prohibition against indirect advertising embodied in Canon 27 of the Canons of Professional Ethics. Although the facts and issues involved were substantially alike, the holdings were divergent.

At the request of a local Miami newspaper, respondent submitted to an interview which formed the basis of a full page article in the "Sunday Supplement." The article see forth a complimentary biography of respondent and described the internal workings of his firm. Respondent was found guilty of violating Canon 27 by the Grievance Committee of the Florida State Bar Association. The recommendation was …

Criminal Law-Aiding And Abeiting-Criminal Liablity For Knowingly Furnishing Racing Results To Bookmakers, John H. Blish

Michigan Law Review

Appellant, who received a weekly salary for distributing horse-racing results by telephone to some twenty bookmakers, was convicted of aiding and abetting bookmaking activities in violation of section 986 of the New York Penal Law. He admitted knowing that the information would be used by his employer's customers in violation of section 986, but no actual evidence of bookmaking was presented to the court. On appeal, held, reversed, one judge dissenting. Knowingly transmitting racing results to bookmaking establishments by telephone does not, without proof of acceptance of bets on a professional basis, constitute aiding and abetting bookmaking in violation …

Eminent Domain-Urban Renewal-Broader Powers To Take Private Property For Public Use, Roger L. Mcmanus

Michigan Law Review

Defendant city instituted a comprehensive urban redevelopment plan under which condemnation and purchase of blighted property would be followed by extensive demolition and clearance. This land was then to be sold subject to certain use restrictions to private developers, chiefly for light industry. Plaintiff, an owner of real estate described as "improved and enhanced with . . . a good, sound, sanitary, modem and well-kept building," brought an action in a lower state court seeking a declaratory judgment against the constitutionality of the Washington Urban Renewal Law, and an injunction to prevent defendant city from condemning his property under the …

Periodical Index, Michigan Law Review

Michigan Law Review

This index includes articles, comments and some of the longer notes which have appeared in leading law reviews since the publication of the last issue of this Review.

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 62, Issue 6 of Michigan Law Review

Crimes Against Humanity And The Principle Of Nonextradition Of Political Offenders, Manuel R. Garcia-Mora

Michigan Law Review

It is thus the purpose of this article to discuss the nature of crimes against humanity in an effort to determine whether they can be classified as political offenses. It is hoped that from the uncertainty and confusion which appear to underlie the practice of the State, some useful legal principles may be extracted.

The Realization Requirement And Tax Avoidance, E. George Rudolph

Michigan Law Review

Consider, for a moment, the plight of G. E. Hall. During 1947 Hall incurred a gambling debt to the Las Vegas Club variously estimated at between 145,000 and 478,000 dollars. The debt came into the sole ownership of one Binion, a partner in the club, and was eventually settled by Hall transferring to Binion an undivided one-half interest in certain cattle located in Arizona and Montana. Thereafter, Hall and Binion engaged in the ranching business as partners. At this point the Internal Revenue Service came forward with a claim that Hall, in the course of this disastrous chain of events, …

Copyrights-Liabilty Of Store Owner For Sale Of Infringing Phonograph Records By Concessionaire, Terrence L. Croft

Michigan Law Review

Defendant H. L. Green Company licensed defendant Jalen Amusement Company as concessionaire of the record departments in twenty-three of its stores. The licensing agreement required Jalen's employees to follow all Green's rules and regulations and empowered Green to discharge any employee found to be conducting himself improperly. The gross receipts of the record department were collected by Green, Jalen receiving only the amount remaining after deductions for the license fee, salaries, and taxes. Although Jalen ordered and paid for the records and its employees made all the sales, record purchasers were unaware of Jalen's autonomy in the record department. Plaintiff, …

Government Regulation Of Bank Mergers: The Revolving Door OfPhiladelphia Bank, Alexander E. Bennett

Michigan Law Review

On November 15, 1960, the second and third largest Philadelphia banks, the Philadelphia National Bank-its assets 1.09 billion dollars, its deposits 603 million dollars-and the Girard Trust Com Exchange Bank-its assets 757 million dollars, its deposits 560 million dollars-applied to the Comptroller of the Currency for approval to merge. The application stated the intention of the Philadelphia National (PNB) to acquire the Girard, including all its assets, deposits, capital, and retained earnings, thereupon to disgorge stock in a resulting bank to Girard shareholders at a ratio of 1.2875 to 1. Both Girard and PNB had a history of merger and …

Administrative Law-Rate-Making-Authority Of Fpc To Limit Rate Of Return On Tax Reserves Resulting From Liberalized Depreciation, Harry T. Edwards

Michigan Law Review

Plaintiff, a natural gas pipeline company, filed a petition for review of a Federal Power Commission ruling in a rate proceeding under section 4(e) of the Natural Gas Act. Plaintiff argued that Congress did not intend tax deferrals arising from liberalized depreciation to be shared by producers and consumers and that, consequently, accumulated tax reserves should be included in the company's rate base at an ordinary rate of return. The FPC ruled that the petitioner could include its tax reserves in the rate base, but that the rate of return on the reserves would be limited to one and one-half …

Federal Criminal Procedure-Subpoena Of Nonresident Citizen As Witness Before Grand Jury, Andre A. Schwartz

Michigan Law Review

Defendant, a nonresident citizen of the United States, was subpoenaed by a federal district court to appear before a grand jury investigating alleged fraud in the procurement of government contracts. Defendant having failed to appear, the district court issued an order directing him to show cause why he should not be held in contempt. On appeal from a judgment holding defendant in contempt, held, reversed, one judge dissenting in part. The power of a federal district court to subpoena a nonresident citizen is limited to the actual trial of a criminal action. United States v. Thompson, 319 F.2d …

Antitrust Civil Process Act-Requirements For A Civil Investigative Demand, Mary Mandana Long

Michigan Law Review

Petitioner sought an order from the United States District Court for the District of Minnesota modifying or setting aside a Civil Investigative Demand served upon it by the Antitrust Division of the Department of Justice. The demand was issued pursuant to the Antitrust Civil Process Act, which provides a compulsory pre-complaint procedure through which the Department of Justice may obtain documentary information upon which it can make a determination of whether there has occurred a violation of the antitrust laws. Section 1312(b) of the act requires that the demand state the nature of the conduct constituting the alleged violation, recite …

Criminal Law-Reiterated Contempt Of Court, Robert C. Bonges

Michigan Law Review

The defendant was found guilty of criminal contempt of court in a civil proceeding for giving "don't remember" answers, after having been granted immunity from prosecution, to questions concerning his activities, asked during a grand jury investigation of an attempted homicide. For his refusal to testify, the defendant was given the maximum penalty provided for criminal contempt under the applicable statute. After paying the fine and serving the sentence, the defendant was brought before the same grand jury thirty-five days later and was asked the same questions. The defendant repeated the "don't remember" answers and was again fined and incarcerated. …

Trusts-Termination-Proof Of Impossibilty Of Issue, Charles F. Niemeth

Michigan Law Review

The surviving trustee of a testamentary trust petitioned the probate court for authority to terminate and distribute the trust in accordance with a compromise agreement between all interested persons apart from the possible issue of one beneficiary. Undisputed medical testimony was received that neither the beneficiary nor his wife were capable of procreation. On a question of law certified to the New Hampshire Supreme Court, held, remanded with instructions to terminate and distribute the corpus of the trust. Termination of a trust in prejudice of the interests of possible future issue is permissible when the possibility of such issue …

Stein & Hay: Cases And Materials On The Law And Institutions Of The Atlantic Area, Homer G. Angelo

Michigan Law Review

A Review of Cases and Materials on the Law and Institutions of the Atlantic Area Edited by Eric Stein and Peter Hay.

Farnsworth: Introduction To The Legal System Of The United States, Luke K. Cooperrider

Michigan Law Review

A Review of Introduction to the Legal System of the United States By Allan Farnsworth.

Government Contracts-Judicial Review Under Disputes Clause, Amos J. Coffman Jr.

Michigan Law Review

In a factual dispute arising under a standard government construction contract, the contractor followed the procedures required by the disputes clause. The contractor, after its claim was denied by the contracting officer, appealed to the Board of Claims and Appeals of the Corps of Engineers. The Board rejected the claim, and the contractor brought suit in the Court of Claims, alleging, in the words of the Wunderlich Act, that the Board's decision was "capricious or arbitrary or so grossly erroneous as necessarily to imply bad faith, or was not supported by substantial evidence." Over the Government's objection, a commissioner of …

Trademarks-Unfair Competition-Scope Of Federal Jurisdiction Under Section 43(A) Of The Lanham Act, Harry T. Edwards

Michigan Law Review

Plaintiff, a manufacturer and distributor of engine bearings and connecting rods for internal combustion engines, brought suit in a federal district court to enjoin the defendant from marketing and distributing the latter's products in containers which closely resembled those of the plaintiff, thereby falsely representing that the goods were produced by and originated with the plaintiff. The cause of action was based solely on section 43(a) of the Lanham Act. In dismissing the complaint, the district court ruled that any attempt to characterize the complaint as charging a "false description or representation" was without merit, and that "false designation of …

Securities Regulation-Applicability Of Exchange Act Section 10(B) To Transaction Effected By Means Of Intrastate Telephone Call, Michael A. Warner

Michigan Law Review

Plaintiff alleged that he had been defrauded in a sale of securities to the defendant. Plaintiff attempted to invoke section 10(b) of the Securities Exchange Act of 1984, which prohibits various fraudulent practices in securities trading. In order to state a cause of action under 10(b), it was necessary for plaintiff to allege that a means or instrumentality of interstate commerce had been used directly or indirectly in connection with the sale. The sale in this case had been effected through telephone conversations over wires located within the city of Philadelphia. However, the wires carrying the calls could be used …