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Pledges - Application Of Collateral To Other Debts, Michigan Law Review

Michigan Law Review

Plaintiff's testator, in 1922, before delivery indorsed a demand note of the corporation of which he was president, waiving presentment for payment, demand, protest, and notice of protest. In 1925, when he was no longer president, he similarly indorsed another note of the corporation. Defendant was payee on both of these notes, which were given for obligations of the corporation. In 1929, the testator executed to defendant a personal note for his own use, to secure which he pledged stock pursuant to a pledge agreement "for the payment of this and of any other liabilities of the undersigned to said …

Sales - Recovery By Seller Against Third Party Tortfeasor, Robert A. Solomon

Michigan Law Review

Plaintiff sold a truck under a conditional sales contract expressly reserving title until the purchase price was paid by the buyer. Pursuant to the terms of the contract, possession was transferred to the latter. While the truck was in his possession it was destroyed through the negligence of the defendant, a third party. At the time of the destruction the buyer had not defaulted in the payments. Held, affirming the decision of the lower court, that the plaintiff had no right to maintain an action against the defendant to recover for the negligent destruction of the truck. Gas City …

Statutes - Interpretation - Application Of Venue Statute To Owners Of Forms Of Transportation Unknown At The Time Of Its Enactment, Michigan Law Review

Michigan Law Review

An Iowa venue statute passed in 1872 provided that "an action may be brought against any railway corporation, the owner of stages, or other line of coaches or cars . . . in any county through which such road or line passes or is operated." A damage action was brought against petitioner in a county through which its truck line regularly operated. Petitioner moved for a change of venue to the county where its principal office was located. The motion was overruled and petitioner tested the validity of the ruling in an action in certiorari. Held, a common carrier …

Taxation - Interstate Commerce - State Taxation Of Gasoline Of Interstate Motor Carriers, C. Eugene Gressman

Michigan Law Review

An Arkansas statute required the payment of the state tax on all gasoline carried into the state in motor vehicle fuel tanks in excess of 20 gallons. The revenue therefrom was applied for highway purposes. Appellee's buses traveled four different routes, two from Memphis through Arkansas to St. Louis and two from Memphis to cities in Arkansas. For the Memphis-St. Louis trip, 68 gallons were required, only 16 of them being used in Arkansas. These 68 gallons, plus 10 extra ones, were placed in the tank at Memphis. On arrival at the Arkansas line, each bus still had 77 gallons …

Torts - Negligence - Duty Of Owner Of Place Of Public Amusement To Protect Against Criminal Acts, Michigan Law Review

Michigan Law Review

Plaintiff as patron of defendant's theater, while in the ladies' room located on one of the top floors of the theater, was assaulted and robbed. The testimony for the plaintiff showed an absence of attendants except on the main floor. At the end of the plaintiff's case the complaint was dismissed. Held, non-suit was erroneous; there was evidence from which the jury could infer that the defendant should reasonably have anticipated the happening of the incident and had failed to take reasonable precautions to guard against it. Hart v. Hercules Theatre Corp., (S. Ct. 1939) 13 N. Y. …

Book Notes, Michigan Law Review

Michigan Law Review

This department undertakes to list and, when possible, describe briefly current books on law and matters closely related thereto.

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

This department lists the articles and comments which appear in twenty-five leading law reviews.

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 38, Issue 5 of Michigan Law Review

Administrative Law - Review Of Administrative Orders - Elimination Of The "Negative" Order Doctrine, Robert J. Miller

Michigan Law Review

The recent decision of the Supreme Court in Rochester Telephone Corporation v. United States is of importance in determining the reviewability of administrative orders that are negative in character. In the principal case, under authority of the Federal Communications Act the Federal Communications Commission issued a general order directing that every telephone carrier file statements concerning its business and affairs. The Rochester Telephone Corporation, the petitioner, failed to file such statements, claiming it was not subject to the commission's jurisdiction because of an exemption under section 2(b) (2) of the Communications Act of 1934. This section provides that the commission …

Corporations - Reorganization- Fair And Equitable Plan, G. Randall Price

Michigan Law Review

Both section 77 B of the federal Bankruptcy Act and chapter X of the Chandler Act provide that the judge shall find the plan of reorganization to be "fair and equitable" before he approves it. This and similar expressions had acquired a well-recognized content in equity reorganization before the statutes were enacted. Congress probably intended to enact the Boyd case rule. Several lower court decisions have expressed doubt as to just what the phrase "fair and equitable" means under the federal Bankruptcy Act. To find the meaning of the phrase "fair and equitable," it is necessary to look back to …

Taxation - Constitutional Law - Power Of Congress To Exempt Federal Instrumentalities From Taxation, Michigan Law Review

Michigan Law Review

The Home Owners' Loan Corporation instituted a mandamus proceeding against the clerk of the superior court of the city of Baltimore to compel the recording of a mortgage upon payment of the ordinary recording charge and without affixing stamps in compliance with the state recording tax. The lending process of the HOLC is expressly declared by Congress to be exempt from taxation. Held, the tax is invalid in so far as it purports to cover the lending process. All justices concurred. Pittman v. Home Owners' Loan Corp., 308 U. S. 21, 60 S. Ct. 15 (1939).

Book Notes, Michigan Law Review

Michigan Law Review

This department undertakes to list and, when possible, describe briefly current books on law and matters closely related thereto.

Torts - Right Of Privacy - Radio Broadcasting, Michigan Law Review

Michigan Law Review

Plaintiff, a chauffeur, had been the victim of a hold-up and shooting, suffering serious injury. Defendant sponsored a radio broadcast in which plaintiff's name was used dramatizing the affair. On hearing the broadcast, plaintiff sued in tort alleging that he suffered mental anguish and physical shock which resulted in impairing his ability to drive and caused him to be discharged from his job. Held, defendant's motion to dismiss denied, as plaintiff had stated a cause of action for invasion of a right of privacy. Mau v. Rio Grande Oil, Inc., (D. C. Cal. 1939) 28 F. Supp. 845.

Trusts - Spendthrift Trusts - Beneficial Interest Held Not Attachable To Make Good Liability As Trustee, W. Wallace Kent

Michigan Law Review

Janet Jones was an inactive trustee and one of the beneficiaries of a spendthrift trust. Because of lack of good judgment on the part of her co-trustee, and without any moral fault on her part, Janet was charged with liability for a large sum. Her surety, who paid the succeeding trustee, took an assignment of the rights of the trust estate against Janet Jones and demanded that the trustee pay to it all the income, past, present and future, which the trust instrument gave to such beneficiary. The trustee brought this action for instructions. Held, as the trust estate …

Unfair Competition - Trade Marks And Trade Names -Nature Of Relief Against The Use Of A Misleading Trade Name Which Has Acquired A Secondary Meaning, Harold M. Street

Michigan Law Review

The petitioner, a Pennsylvania manufacturer of cigars which contained only Pennsylvania tobacco, but which it had branded "Havana Smokers" since 1902, was ordered by the Federal Trade Commission to cease and desist from using the word "Havana" to designate its product. The petitioner claimed that the brand had acquired a secondary meaning and asked the court to modify the order to permit retention of the word "Havana" qualified by the legend: "Notice. These cigars are made in the United States and only of United States tobacco." Held, the name so used might result in misrepresentation and its use must …

Workmen's Compensation - Federal Employers' Liability Act - Employment In Interstate Commerce, Michigan Law Review

Michigan Law Review

Plaintiff was an employee of the Boston Terminal Company, defendant, which owned and operated the South Station in Boston. The general employment of the plaintiff consisted of the handling of mail for both interstate and intrastate transportation. He was ordered to load three mail sacks, which included letters from outside the state but the destination of which was wholly within the state, on a train which traveled entirely within the state. While returning to the mail room after loading the three sacks, the plaintiff was injured when the truck he was driving overturned due to his lack of experience in …

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

This department lists the articles and comments which appear in twenty-five leading law reviews.

Expatriation Of American Minors, Lester B. Orfield

Michigan Law Review

The United States Supreme Court in May, 1939, handed down a vitally significant decision on the expatriation of American minors. Prior to that date, one was forced to deduce the law from conflicting decisions of the lower federal courts and of state courts, rulings by the departments of state, labor, and justice, and views of writers. This, therefore, seems an appropriate time at which to discuss the problems which have been raised and the solutions which have been offered.

The Powers Of A Court Of Equity In State Tax Litigation, Maurice S. Culp

Michigan Law Review

Hitherto a state taxpayer, otherwise meeting the jurisdictional requirements of a federal district court, could secure an injunction from such a court upon a showing that there was no adequate remedy at law in the federal district court, and this regardless of the legal or equitable remedies afforded by the state courts.

In view of this recent legislation, it becomes important to ascertain the new limitation upon the equity powers of the federal district courts in state tax litigation. Likewise, because of these new rigid limitations upon the jurisdiction of the federal courts, the attitude of the state courts of …

Subjective Judicial Review Of The Federal Communications Commission, Harry P. Warner

Michigan Law Review

The basis for judicial review of administrative agencies in one form or another is the Union Pacific rule, originally developed to govern the relationship between the courts and the Interstate Commerce Commission. Variations in the application of this judicial formula to different agencies have been shaped for the most part by the character of the governmental power exercised and the nature of the subject matter under review. For example, the judicial control exercised over taxing authorities is circumscribed by the sovereign demand for revenue essential to the maintenance of government. The scope of judicial review has been extended in deportation …

Corporations - Receivers - Rights Of Creditors Or Receiver To Raise An Objection To Corporate Action Which Would Be Open To Shareholders, Jerome J. Dick

Michigan Law Review

The writer will attempt to show that the courts, in spite of their language of fraud and breach of trust, are not applying the legal rules of fraud and trust relationship in allowing recovery to the creditor. The cases brought by the receiver for the benefit of creditors can be roughly divided into three broad groups: (1) instances where the court speaks of a trust relationship, holding that the corporation has breached the duty of trust to the creditors; (2) situations where the court speaks of some hazy principle of "fraud" on the creditors; (3) cases where the court forgets …

Taxation - Federal Income Tax - Distinction Between Sale And Tax Exempt Reorganization Under Section 112, Henry J. Merry

Michigan Law Review

The recent Supreme Court decision in Le Tulle v. Scofield, disapproving the views of four out of five circuit courts of appeals, appears to add a new and more specific requirement to the already complex law on the subject of statutory reorganization under the Revenue Act of 1928 -- that the consideration received by the transferor corporation include some stock of the transferee corporation. In the subject case, the Gulf Coast Irrigation Company transferred substantially all its assets to the Gulf Coast Water Company in exchange for $50,000 in cash and $750,000 in mortgage bonds, four-fifths of which matured …

Banks And Banking - Gifts -- Co-Tenancy -- Joint Accounts -- Statutes, Michigan Law Review

Michigan Law Review

Testator ordered his bank to transfer his account to a new account in the name of himself and his daughter "for either or survivor." After testator's death, suit was brought by his executor to compel discovery of $5,000 which had been withdrawn from the joint account by the daughter prior to the death of her father. The executor introduced evidence which tended to show that neither the testator nor his daughter contemplated that the daughter was to enjoy any interest in the account until her father's death. Held, that the daughter must pay to the executor the amount which …

Bills And Notes - Price V. Neal - Duty Of Presenter Bank To Make Inquiry, Oscar Freedenberg

Michigan Law Review

A stranger opened an account in the defendant bank and deposited therein several large checks (payable to himself) forged with the signature of the president of the plaintiff bank and drawn on the plaintiff. The checks were indorsed by the forger, and also by the defendant, the latter "guaranteeing prior indorsements." After payment by the plaintiff, the amounts were credited to the forger's account and soon thereafter withdrawn. The plaintiff alleged a local banking custom which required careful watching of new accounts and which the defendant failed to observe. On demurrer to the plaintiff's petition, held, that the rule …

Conflict Of Laws-Public Policy Of The Forum A Bar To Wife's Action Against Husband For Negligent Injury, Oscar Freedenberg

Michigan Law Review

Husband and wife were residents of state A, in which a personal tort action between the spouses was not recognized. The wife sued in state A for injuries sustained by reason of her husband's negligent operation of an automobile in state B. Notwithstanding the wife had a right of action under the lex loci delicti, held, that the public policy of the forum is an effective bar to an action by the wife against her husband for personal injuries. (In the record of the case it appears that the defendant in interest was an insurance company.) Kircher …

Constitutional Law - Original Jurisdiction Of United States Supreme Court - Availability As A Procedural Remedy To Avoid Multiple Taxation, Benjamin W. Franklin

Michigan Law Review

The state of Massachusetts instituted an original proceeding against the state of Missouri and individual citizens of Missouri for leave to file a bill of complaint, alleging that M. B. Blake died domiciled in Massachusetts; that she had created three trusts of securities, reserving a power of revocation over two; that the securities were held in Missouri where the trustees resided; that both states had statutes subjecting to taxation property passing by deed, grant or gift, made or intended to take effect in possession or enjoyment after the donor's death; that the Massachusetts statute taxed intangible property only when owned …

Constitutional Law - Privileges And Immunities Of Federal Citizenship - Discriminatory Tax On Out-Of-State Bank Deposits - Colgate V. Harvey Overruled, C. Eugene Gressman

Michigan Law Review

A Kentucky statute imposed on its citizens an annual ad valorem tax on their bank deposits outside the state at the rate of fifty cents per $100 and at the same time imposed on their bank deposits within the state a similar tax at the rate of ten cents per $100. Decedent, a resident and citizen of Kentucky, died in 1929. On several prior tax assessment dates, he had large funds on deposit in New York banks which he failed to report for taxation purposes. The state brought suit against the executor to recover the tax, interest, and penalties. The …

Corporations - Stockholder's Derivative Suit - Diversity Of Citizenship, Edward S. Biggar

Michigan Law Review

Plaintiff, a New York corporation, brought a stockholder's derivative suit, in federal court, against the American Tobacco Company, a New Jersey corporation, and its directors, the majority of whom were citizens of New York. There being no federal question involved, defendant moved to dismiss the complaint because there was no proper diversity of citizenship. Plaintiff argued that by the New York decisions the ultimate interests of the defendant corporation and the plaintiff were identical, and that consequently the defendant corporation must be considered as the real plaintiff, thus supplying the necessary diversity of citizenship under the rule of Erie R.R. …

Corporations - Transfer Of Stock - Liability To Remainderman For Absolute Transfer At Instance Of Life Tenant, James D. Ritchie

Michigan Law Review

X, life tenant of certain stock of defendant company under a will, endorsed the certificates as life tenant; Y Company guaranteed his signature and itself endorsed in blank. Defendant, with knowledge of X's limited interest, transferred the stock on the books and issued new certificates to Y Company absolutely. Learning of their interests after X's death, plaintiff-remaindermen demanded certificates for the stock from defendant, which refused. In their action for conversion, held, that defendant breached its fiduciary duty to plaintiffs in making an absolute transfer with knowledge that the transferee had only a life interest and …

Evidence - Negligence - Res Ipsa Loquitur - Duty Of Occupier Of Land To Users Of Adjoining Highway, Michigan Law Review

Michigan Law Review

While seated in his car waiting for a traffic light to change, plaintiff was injured by the precipitation of debris caused by an explosion within the remaining walls of a building which defendant and his servants were razing. During the wrecking operations masses of bricks occasionally fell on a roped-off portion of the sidewalk under which ran two pipes through which gas was delivered to the building. After defendant's servants detected the escape of gas, the gas company removed the meters and plugged the pipes in the cellar. Gas continued to escape, and defendant was informed of its presence by …