Digital Commons Network^™

Bailments-Owner Of Railroad Station Lockers As Bailee Of The User's Goods, Richard W. Billings

Michigan Law Review

Action was brought by the plaintiffs for the loss of a package of costume jewelry placed in a locker owned by the defendant company. The locker was of the type commonly found in railroad stations; one desiring to use it merely places his goods in the locker, inserts a coin, removes the key and retains it in his possession. Although the defendant kept a master key and reserved the right to remove any article which remained in the locker longer than the 24-hour rental period, it exercised no other control. On the other hand, the user had access to the …

Constitutional Law-Power Of State To Discriminate Against Federal Government By Testamentary Transfer Statute, Gordon W. Hueschen

Michigan Law Review

Decedent, domiciled in California, made a testamentary gift to the United States. By an interpretation of the state probate code, the California Supreme Court held the gift invalid and directed distribution to decedent's heirs. The United States asserted unconstitutional interference with the federal government's power to receive gifts. On appeal to the United States Supreme Court, held, affirmed. The California Probate Code did not violate the supremacy clause of the Constitution, and no unconstitutional discrimination was effected against the federal government thereby, even though the statute allows testamentary gifts by state domiciliaries to the state and prohibits testamentary gifts …

Contracts-Equitable Lien On Partnership Assets, Thomas P. Segerson

Michigan Law Review

The plaintiff and X, now deceased, entered into a partnership agreement whereby each was given the option, upon the death of the other, to wind up the partnership affairs according to law or to purchase the deceased's interest. On X's death, plaintiff exercised the option to purchase. In this suit plaintiff seeks to have a certain agreement construed as a deed and to quiet title. Defendants, as legal representatives of X, answered and filed cross bills claiming a lien on all partnership assets or decedent's partnership interest for the balance due on the purchase price. Defendants allege …

International Law-Status Of Germany-Nationality Laws-Voting In German Election As Forfeiture Of United States Citizenship, Jean Engstrom S. Ed.

Michigan Law Review

Petitioner, an American citizen living in Germany, voted in the January 27, 1946 election of local officials in Rodach, Germany, American Zone of Occupation, held under the direction and with the approval of the Office of Military Government for Bavaria. Petitioner was issued a certificate of loss of nationality, based on section 801(e) of the Nationality Act of 1940, which provides that American nationality is lost through "voting in a political election in a foreign state." Held, petitioner had not lost her citizenship. The Rodach election was held in "territory then ruled and governed by the United States and …

Bills And Notes-Limitation Of Actions-Running Of The Statute Of Limitations Against The Holder Of A Check, Gordon I. Ginsberg

Michigan Law Review

Defendant issued a check to plaintiff's intestate on July 1, 1942 for services rendered. On April 21, 1943, the payee deposited the check in her bank, but it was returned to her uncollected because the bank on which it was drawn refused to make payment on account of its "stale" date. Nothing further was done to enforce payment of the check during the payee's lifetime, and she died on September 20, 1948. This action on the check was brought by her administrator on July 28, 1949. On appeal from a judgment for plaintiff, held, the action is barred by …

Negligence-Automobile Bailments--Effect Of Owner Responsibility Statutes, Bernard L. Goodman

Michigan Law Review

Plaintiff brought an action to recover for damage to his automobile resulting from a collision with defendant's automobile. Each of the vehicles was being negligently operated by the son of the owner. A statute provided that one operating a vehicle with the owner's consent should be deemed the owner's agent. The court refused to give an instruction which would preclude plaintiff's recovery if the jury found that his son's negligence contributed to the accident. On appeal from a verdict for the plaintiff, held, affirmed. The statute makes the bailor liable to persons injured because of the bailee's negligence but …

Smith: Personal Life Insurance Trusts, Willard H. Pedrick

Michigan Law Review

A Review of PERSONAL LIFE INSURANCE TRUSTS. By Allan F. Smith.

Notes, Michigan Law Review

Michigan Law Review

The information given in the notes is derived from inspection of the books, publishers' literature, and the ordinary library sources.

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

This department lists the articles and comments which appear in leading law reviews. The index embraces material published since the last issue of this REVIEW.

Venue-Interpretation Of Title 28, United States Code, Section 1406(A), Nolan W. Carson

Michigan Law Review

A tort action for injuries sustained in Wyoming was commenced in an Illinois state court and removed to the proper United States District Court in Illinois. Defendant interposed the Illinois statute of limitations as a defense. In order to take advantage of the longer Wyoming statute of limitations, plaintiff moved to transfer the suit to the United States District Court for Wyoming under authority of Title 28, United States Code, section 1406(a), providing for the transfer of actions from district courts where venue was improperly laid. The motion to transfer was denied and the, complaint was dismissed. Held, section …

The Compulsory Manufacturing Provision-An Anachronism In The Copyright Act, Clinton R. Ashford S. Ed.

Michigan Law Review

The protection afforded foreign authors under the United States Copyright Act at the present time is subject to stringent restrictions. Copyright will not be granted to a person who is neither a citizen nor a resident of the United States unless he complies with a great many formalities, and, in addition, conforms with the compulsory manufacturing requirement. It is the object of this comment to examine the manufacturing provision, section 16 of the Copyright Law, and to show why it should be deleted from the act.

Venue Statutes: Diagnosis And Proposed Cure, George Neff Stevens

Michigan Law Review

Modern procedural reform movements have swept by the problems of venue with but little notice. This is unfortunate, for all too many cases are decided on a venue technicality, with complete disregard for the merits. Present day venue procedures are the result of historical developments and piecemeal legislative tinkering. The time has come for an appraisal and for corrective action.

Part I of this paper contains a comparative and critical study of venue statutes in the United States today. Part II points out how and why certain of these provisions have given rise to serious problems and suggests a few …

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 49, Issue 3 of Michigan Law Review

Taxation-The Lincoln Electric Question: Must "Ordinary And Necessary" Business Expenses Be Also "Reasonable" In Amount, R. Lawrence Storms S. Ed.

Michigan Law Review

The United States Court of Appeals for the Sixth Circuit has recently determined in Commissioner v. Lincoln Electric Co. that the element of reasonableness is inherent in the phrase "ordinary and necessary" as used in the paragraph of the Internal Revenue Code authorizing deductions for business expenses. It will be of interest to develop the history of the case throughout its ten years of litigation, to examine some of the collateral points raised, and to attempt a critique of the merits of the court's position.

Administrative Law-Federal Trade Commission-Constitutional And Statutory Authority To Order Additional Compliance Reports, Charles Myneder S. Ed.

Michigan Law Review

Proceeding under section 5 of its organic act, the Federal Trade Commission issued an order requiring defendants to cease and desist from engaging in certain trade practices. The court of appeals, in its decree affirming the order, directed compliance reports to be filed with the commission within a specified time, reserving jurisdiction to enter further orders. Four years after the compliance reports were filed, the commission, on its own motion, ordered additional reports to show continued compliance. Defendants refused to report, challenging the authority of the commission to issue the order. The district court dismissed suit by the commission for …

Tax Statutes-The Role Of Stare Decisis In Determining "Legislative Intent", Paul E. Anderson S. Ed.

Michigan Law Review

An interesting case history recently unfolded by the Supreme Court reveals a novel application of stare decisis to decisions which interpret an act of Congress. The peregrinations of the Court have caused Congress to intervene on two occasions to settle the questions opened by the Court-although on the second occurrence the Court construed the act precisely as had Congress when it decried the Court's first interpretation. This imbroglio issued from the Revenue Act of 1918 under which Congress provided that transfers "intended to take effect in possession or enjoyment at or after his death" should be included in the donor's …

Federal Courts-Appeals-Finality Of Decree Dismissing Intervenor's Claim After Trial, J. D, Mcleod S. Ed.

Michigan Law Review

Dickinson, a promoter of Petroleum, sued Lloyd, his fellow promoter, to impress an equitable lien on certain stock in Lloyd's possession. Petroleum and some of its shareholders known as the ''Rinke subscribers" intervened, seeking to have the stock issue canceled because of fraud, and to recover damages for secret profits gained through breach of fiduciary duty to the corporation. In 1947, after trial, a decree was entered. Claims of both Dickinson and Lloyd were dismissed. Judgment against them was entered in favor of the class of subscribers, the decree providing that the several claims of the individual subscribers be liquidated …

Judgments-Res Judicata Between Adverse Codefendants, Nolan W. Carson

Michigan Law Review

ln an attempt to enforce a personal judgment, the judgment creditor brought a statutory equity suit jointly against the judgment debtor (plaintiff in the present suit) and the defendant insurance company to reach and apply the proceeds of a motor vehicle liability policy. The bill was dismissed as to the insurance company. In a subsequent action by plaintiff on the policy, the answer set up the equity decree as res judicata. Plaintiff demurred on the ground that the answer failed to allege that the parties were adversaries inter sese under the pleadings of the former suit. Held, order overruling …

Alterations Of Accrued Dividends: I, Arno C. Becht

Michigan Law Review

When a preferred stock has cumulative dividends and the dividend period passes without payment, the dividend is said to "accrue." The meaning of the term "accrued" has been the subject of much inquiry. Since a stockholder cannot sue for an accrued dividend for the same reasons that he cannot sue for any other undeclared dividend, the term clearly does not mean what it does in the law of debt, i.e., that a cause of action has arisen. It means only that no dividend can be paid on the common stock until that dividend has been paid on the preferred stock. …

Agency-Election To Sue Undisclosed Principal Or Agent, Alan C. Boyd S. Ed.

Michigan Law Review

Plaintiff brought action against a principal and his agent to foreclose a mechanic's lien on the principal's real property, alleging that he had expended labor and materials in the improvement of the principal's land pursuant to a contract between himself and the agent. Though plaintiff joined the agent as a party defendant, he did not pray for relief against him. Both defendants moved to dismiss the action. Held, action dismissed as to the agent. Whether or not the principal was disclosed at the time the contract arose, the action was properly dismissed as against the agent. If the principal …

Judgments-Collateral Attack-Insufficiency Of The Cause Of Action As A Basis For Denying Jurisdiction Of A Court Rendering A Default Judgment, Lloyd J. Tyler, Jr.

Michigan Law Review

In a previous action, A, as assignee of a conditional sales contract, sought to recover the property when the purchase price was not paid. Defendant counterclaimed for damages because of alleged fraud of the assignor in making the sale. On appeal, the Montana Supreme Court held that defendant could not have an affirmative judgment on the counterclaim, but could use his claim as recoupment only. On remand, A's attorney moved for continuance until his client could secure a new attorney. The motion was denied, and on the day set for trial A was not represented. As a consequence, …

Negligence-Liability Of Landlord For Injuries To Persons On The Premises, John A. Hellstrom S. Ed.

Michigan Law Review

Plaintiff, an invitee, sued for injuries caused by the fall of plaster from the ceiling of a tavern operated by a tenant in a building owned by defendant. Held, the rule whereby a lessor of premises leased for a public use is liable to an invitee of his tenant is inapplicable. Warner v. Fry, (Mo. 1950) 228 S.W. (2d) 729.

Insurance-Consummation Of The Contract-Delivery Of The Policy, John J. Gaskell S. Ed.

Michigan Law Review

An application for life insurance was accepted, and a policy issued, mailed to, and received by the agent of the insurer. The application provided that the policy would not take effect until "manual" delivery thereof. The agent made several unsuccessful attempts to deliver the policy, but before any physical transmission of the policy, the insured died. The beneficiaries sued to recover the amount of the policy. The trial court gave judgment for the defendant insurance company. On appeal, held, affirmed. Manual delivery was a valid condition precedent. There having been no manual transmission to the insured, and the plaintiffs …

Workmen's Compensation-Injury In Fight As Arising Out Of And In The Course Of The Employment, Philip G. Meengs

Michigan Law Review

Deceased was employed by defendant as an engineer and, while waiting to relieve the engineer then on duty, began to quarrel with him as to the manner in which a subordinate was doing his work. Words led to blows, and after a short fight, deceased collapsed and died of emotional trauma of the heart. There were no other witnesses, but the survivor claimed deceased struck the first blow. From an award given by the Workmen's Compensation Board, defendant and its insurer appealed. Held, affirmed. The death arose "out of and in the course of the employment." Commissioner of Taxation …

Notes, Michigan Law Review

Michigan Law Review

The information given in the notes is derived from inspection of the books, publisher's literature, and the ordinary library sources.

Torts-Liability For Misrepresentation Made With Honest Belief In Its Truth, C. E. Lombardi, Jr.

Michigan Law Review

Defendant, a liquor broker, was authorized to make contracts for a liquor wholesaler. He represented to plaintiff that the wholesaler had sufficient liquor immediately available to supply plaintiff with an "unlimited amount," and that he had investigated the company and it was "financially all right." Defendant honestly believed his representations to be true. Relying on the representations, plaintiff placed a large order with the wholesaler and paid a deposit which he lost when the wholesaler went bankrupt shortly thereafter. Plaintiff sued for damages. On appeal from judgment for plaintiff, held, affirmed. Petition for rehearing denied. Stein v. Treger, …

Constitutional Law-Search And Seizure -Inspection Of Private Dwelling By Health Officer Without A Warrant, Robert P. Griffin S. Ed.

Michigan Law Review

A health officer sought to enter and inspect respondent's private home without a search warrant after a neighbor complained that the premises were not "clean and wholesome" as required by a District of Columbia ordinance. Respondent denied the officer permission to enter and refused to unlock the door, maintaining that his entry would violate her constitutional rights. As a result, respondent was convicted in municipal court of violating an ordinance making it a misdemeanor to interfere with or prevent an authorized sanitation inspection. On appeal, reversal of the conviction by the Municipal Court of Appeals was affirmed by the Court …

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

This department lists the articles and comments which appear in leading law reviews. The index embraces material published since the last issue of this REVIEW.

Constitutional Law-Equal Protection Clause-County Unit Vote, Charles Myneder S.Ed.

Michigan Law Review

Plaintiffs brought an action against defendants, Chairman of the Georgia State Democratic Executive Committee and others, to restrain adherence to a state statute providing that the County Unit Vote shall determine the outcome of a primary election. Under the statute each county is alloted a number of unit votes. The candidate receiving the highest popular vote in the county is awarded the unit votes of that county. Plaintiffs, residents of the most populous county in the state, alleged that their votes had on an average but one-tenth the weight of those in the other counties in the state. From a …

Corporations-Measure Of Short Swing Profits Under Section 16(B) Of The Securities Exchange Act Of 1934, G. B. Myers S.Ed.

Michigan Law Review

Plaintiff, a stockholder in X corporation, sued in the name of and on behalf of the corporation to recover short swing profits made by defendants in the sale of stock purchase warrants of the corporation, in violation of the Securities Exchange Act. Defendants were officers of the corporation and as part of the consideration for entering into their contracts of employment they received each year a number of these warrants. Within six months of the receipt of their 1945 warrants defendants had made certain sales of warrants then held by them. The court, in a previous ruling, had granted a …