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Michigan Law Review

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Bankruptcy -Trustee's Liability - Effect Of Requirement Of Deposit In Designated Depositary On Trustee's Common Law Duty Of Due Care, Russel T. Walker Jun 1939

Bankruptcy -Trustee's Liability - Effect Of Requirement Of Deposit In Designated Depositary On Trustee's Common Law Duty Of Due Care, Russel T. Walker

Michigan Law Review

In a suit to charge a trustee in bankruptcy for the loss of funds of the bankrupt estate caused by insolvency of the depositary bank, the trustee contended that as he had fulfilled the requirement of section 61 of the Bankruptcy Act by depositing the funds of the estate in a "designated depositary," he could not be charged with liability for any loss occurring thereafter; he argued that section 61 repealed, by implication, the trustee's common-law duty of due care in the handling of estate funds after they were deposited in a "designated depositary." Held, the fact that the …

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Bills And Notes - Effect Of Statute Of Limitations On Demand Certificates Of Deposit And Certified Checks, Michigan Law Review Jun 1939

Bills And Notes - Effect Of Statute Of Limitations On Demand Certificates Of Deposit And Certified Checks, Michigan Law Review

Michigan Law Review

Plaintiff sued on a certificate of deposit and a certified check, the former being issued by the defendant bank in 1905 and the latter being certified in 1919. Both were negotiated in 1937 and presented for payment the next day. Defendant pleaded the ten year statute of limitations as a bar. Held, at common law the statute of limitations did not operate on demand certificates of deposit until demand had been made, and section 70 of the Negotiable Instrument Law does not alter this common-law requirement. This applies also to certified checks, for they are substantially the same as …

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Deeds - Construction Where Grantees Take "Jointly'', Michigan Law Review Jun 1939

Deeds - Construction Where Grantees Take "Jointly'', Michigan Law Review

Michigan Law Review

Land was conveyed to plaintiffs' ancestor and defendant by deed. The granting clause read: "hereby convey to Isaac . . . and Alice . . . "; the habendum clause: "Said real estate being taken by said grantees jointly . . . to have and to hold . . . to the said grantees, their assigns, heirs, and devisees forever." The heirs of Isaac, who died intestate, filed a partition petition; Alice, claiming as surviving joint tenant, answered and also started an action to quiet title. A statute provided that "Conveyances to two or more in their own right create …

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Evidence - Availability Of Evidence For Consideration By The Jury- Effect Of Lack Of Motion To Strike, Michigan Law Review Jun 1939

Evidence - Availability Of Evidence For Consideration By The Jury- Effect Of Lack Of Motion To Strike, Michigan Law Review

Michigan Law Review

The plaintiff sued a city for personal in juries sustained as a result of a fall in the street while she was using due care, the fall being caused by a defect in the street. Plaintiff testified on cross-examination that the defect was two and one-half inches from the street car rails, which fact would relieve defendant of liability under sections 3752 and 3755 of the Connecticut General Statutes. The plaintiff, on rebuttal, testified that the defect was twenty-eight inches from the rail. Defendant's counsel objected to this after the answer was given, and the objection was sustained. The verdict …

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Garnishment - Full Faith And Credit - Nature Of Principal Judgment, John N. Seaman Jun 1939

Garnishment - Full Faith And Credit - Nature Of Principal Judgment, John N. Seaman

Michigan Law Review

Plaintiff, appellee, sued an Illinois insurance company for legal services, and on the same day sued out a writ of garnishment against a Michigan debtor of the insurance company. Two days later the insurance company was dissolved in Illinois under the provisions of the Illinois Insurance Code, and an Illinois liquidator was vested with title to all of the insurance company's property, wherever located. The liquidator intervened in this case, claiming prior title to the garnishment debt, by virtue of the Illinois statute and judicial proceedings. Held, the commencement of the garnishment suit gave plaintiff a lien on the …

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Labor Law - National Labor Relations Act - Jurisdiction Of The National Labor Relations Board, John C. Griffin Jun 1939

Labor Law - National Labor Relations Act - Jurisdiction Of The National Labor Relations Board, John C. Griffin

Michigan Law Review

Respondent, employing about sixty persons, was the sole owner of a garment-tailoring concern in New Jersey. His only business was with the Lee Company, a New York firm, that sold finished goods. There was no financial affiliation between them. The Lee Company purchased the cloth and caused it to be delivered to respondent. Respondent tailored it and delivered the finished product to a representative of the Lee Company at respondent's plant. This representative sent it back to New York in Lee Company trucks. Title to the cloth remained throughout in the Lee Company. Held, Justices McReynolds and Butler dissenting, …

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Labor Law - National Labor Relations Board - Remand Without Decision After Order To Enforce Is Filed In Circuit Court Of Appeals, Robert E. Sipes Jun 1939

Labor Law - National Labor Relations Board - Remand Without Decision After Order To Enforce Is Filed In Circuit Court Of Appeals, Robert E. Sipes

Michigan Law Review

The National Labor Relations Board filed its petition in the circuit court of appeals January 7, 1938, seeking enforcement of its order against petitioner, Ford Motor Company. Petitioner filed its answer and asked that the order be set aside. On May 2, 1938, the board moved to withdraw its petition without prejudice. On May 4, 1938, petitioner filed its petition asking the court to review and set aside the board's order. The board moved that the case be remanded to it for further proceedings. The court entered an order remanding the proceedings to the board for the purpose of setting …

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Landlord And Tenant - Liability Of Landlord To Lessee's Guest - "Nuisance", Michigan Law Review Jun 1939

Landlord And Tenant - Liability Of Landlord To Lessee's Guest - "Nuisance", Michigan Law Review

Michigan Law Review

Defendant leased the top two floors of a three-story building to a single tenant for use as an apartment house, the first floor being let to another tenant for business purposes. At the time of the original lease, there were facilities on the roof suitable for the laundering needs of prospective subtenants. There were also on the roof, in plain sight, three skylights, each being covered by glass panes resting on a casing which was raised twelve inches above the surface of the roof. While assisting a subtenant friend in hanging laundry, plaintiff fell through one of these skylights. He …

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Libel And Slander - Privilege Of "Fair And Accurate Report'' Of Judicial Proceedings-Non-Liability Of Vendor Of Newspaper, Ralph E. Helper Jun 1939

Libel And Slander - Privilege Of "Fair And Accurate Report'' Of Judicial Proceedings-Non-Liability Of Vendor Of Newspaper, Ralph E. Helper

Michigan Law Review

Defendant newspaper published a false account of plaintiff's testimony in a criminal trial. In an action for damages for libel against the newspaper and the local distributor of the papers who had no knowledge that libels were contained therein, held (1) privilege to report judicial proceedings applies only to a correct report, even though the inaccuracy be the result of an unintentional mistake; and ( 2) that the vendor is not liable in absence of knowledge that the newspaper contained libelous matter or knowledge of extraneous facts to put him on guard. Bowerman v. Detroit Free Press, 287 Mich. …

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Libel And Slander - "Racketeers'' As Libel Per Se - Necessity For Proof Of Special Damages By Unincorporated Labor Union - Dictation As Publication, Michigan Law Review Jun 1939

Libel And Slander - "Racketeers'' As Libel Per Se - Necessity For Proof Of Special Damages By Unincorporated Labor Union - Dictation As Publication, Michigan Law Review

Michigan Law Review

The president of C Company dictated a letter addressed to an unincorporated labor union which contained the statement, "I am getting sick of the damn nonsensical business on the part of a bunch of racketeers." In a libel action against the president and C Company by the union, defendants' motion to dismiss was denied. Held, the word "racketeers" is libelous per se; the unincorporated association may sue without proving special damages, for words libelous per se; dictation to a stenographer was publication. Bradley v. Conners, 169 Misc. 442, 7 N. Y. S. (2d) 294 (1938).

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Municipal Corporations - Licenses - Prohibitory Fee On "Selfservice" Groceries, S. R. Stroud Jun 1939

Municipal Corporations - Licenses - Prohibitory Fee On "Selfservice" Groceries, S. R. Stroud

Michigan Law Review

A city ordinance imposed an annual license fee of $10,000 on "self-service" groceries. The city had power by statute to license stores for the sale of meat, groceries, etc., for revenue purposes. Plaintiff brought an action to enj9in the ordinance. Held, the ordinance was invalid and injunction should be granted. Great Atlantic & Pacific Tea Co. v. Board of Commissioners of Camden, (N. J. Eq. 1939) 4 A. (2d) 16.

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Powers - Liability Of Appointed Property For Debts Of Donee - Validity Of Attempted Restriction Of Liability By The Donor, Ward P. Allen Jun 1939

Powers - Liability Of Appointed Property For Debts Of Donee - Validity Of Attempted Restriction Of Liability By The Donor, Ward P. Allen

Michigan Law Review

By the terms of the donor's will a spendthrift trust was set up for her three grandchildren for life, giving them a general testamentary power of appointment over that portion of the corpus from which their share of the income had been derived, "but in no event shall any part of said trust funds be liable for, or be paid or appropriated to or for any debts or liabilities of such grandchildren . . . . " There was a gift over to the issue of the donees in default of appointment. By will one of the donees exercised the …

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Public Utilities - Rates - Constitutionality Of Statutes Prohibiting Minimum Or Service Charges, S. J. Schuman Jun 1939

Public Utilities - Rates - Constitutionality Of Statutes Prohibiting Minimum Or Service Charges, S. J. Schuman

Michigan Law Review

An Oklahoma statute required that the consumer should be charged only for the gas he used as registered on a meter. The inhabitants of a certain town supplied with gas by petitioner were predominantly small consumers so that on a straight-line meter rate they did not pay for the cost of service. An increase in the rate would not solve the difficulty. The company petitioned the commission for authority to impose either a service charge or a minimum charge. The commission denied the petition. Held, that as applied to this particular case, the statute was unconstitutional and the petition …

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Taxation - Ad Valorem Taxes - Tax On Gross Earnings As Evasion Of Constitutional Prohibition Of Ad Valorem Taxes, Ward P. Allen Jun 1939

Taxation - Ad Valorem Taxes - Tax On Gross Earnings As Evasion Of Constitutional Prohibition Of Ad Valorem Taxes, Ward P. Allen

Michigan Law Review

An Oklahoma statute imposed a tax of four per cent of the gross earnings of all freight cars owned, rented, leased, or used by any freight line company within the state, giving the state tax commission power to raise or lower the rate so that the tax should be "as nearly as practicable, the equal of the amount of tax such . . . companies would pay if their cars were taxed on an ad valorem basis." Held, although purporting to be measured by gross earnings, the tax is neither a gross earnings tax, nor a specific property tax, …

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Taxation-Income Tax-Dealings By Corporation In Its Own Stock, John N. Seaman Jun 1939

Taxation-Income Tax-Dealings By Corporation In Its Own Stock, John N. Seaman

Michigan Law Review

From 1921 to 1929, appellee corporation bought shares of its own stock, not for retirement, but to sustain the market, to increase the number of shareholders by resale in smaller blocks, and for other reasons. This stock was held as treasury stock. In 1929 it was sold by the corporation, at a profit. From 1920 to 1934 the Treasury Regulations exempted the proceeds of such a transaction from income tax, treating the purchase and sale as separate decrease and increase in the capital, and not as resulting in income. But in 1934 the regulation was changed, so as to tax …

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United States - Government Corporations - Home Owners' Loan Corporation Not Suable In Tort, John H. Uhl Jun 1939

United States - Government Corporations - Home Owners' Loan Corporation Not Suable In Tort, John H. Uhl

Michigan Law Review

An action was brought in tort for damages sustained in a fall on ice on the sidewalk in front of premises which were in the possession and control of the Home Owners' Loan corporation. The defendant corporation was created under the Home Owners' Loan Act passed by Congress in 1933 which provides that it "shall have authority to sue and to be sued in any court of competent jurisdiction, Federal or State." The corporation moved to dismiss the action, claiming that as an instrumentality of the United States it could not be sued without the consent of Congress and that …

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Monthly Periodical Index, Michigan Law Review Jun 1939

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

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

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Book Notes, Michigan Law Review Jun 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.

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Patents - Right Of Patentee To Restrict Manufacture, Use, And Sale Of Patented Device, Collins E. Brooks May 1939

Patents - Right Of Patentee To Restrict Manufacture, Use, And Sale Of Patented Device, Collins E. Brooks

Michigan Law Review

The patent laws of the United States grant to a patentee the "exclusive right to make, use, and vend the invention or discovery . . . throughout the United States and the Territories thereof . . . . " Much litigation has arisen over the extent of the monopoly thus granted a patentee, but even at this late date it is not too clearly defined. The question came up anew in the case of General Talking Pictures Corp. v. Western Electric Co., where the owner of a patent on a device used in sound reproduction and broadcast reception had …

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Bankruptcy-Corporate Reorganization - Fraternal Benefit Society Entitled To Benefits Of Section 77b, Russel T. Walker May 1939

Bankruptcy-Corporate Reorganization - Fraternal Benefit Society Entitled To Benefits Of Section 77b, Russel T. Walker

Michigan Law Review

Plaintiff's right to petition for reorganization under section 77 B of the Bankruptcy Act was challenged on the ground that plaintiff was an "insurance corporation" within the meaning of section 4 of the Bankruptcy Act and therefore excepted from the benefits of the act. Held, that when Congress used the words "insurance corporation" in the Bankruptcy Act, it meant a corporation authorized by the law of its creation to do an insurance business. As Congress knew that the various States had authorized the formation of fraternal benefit societies, described as such in enabling statutes, when Congress passed this statute …

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Negligence - Duty To Discover Continuous Trespasser Or Bare Licensee On Railroad's Right Of Way, Michigan Law Review May 1939

Negligence - Duty To Discover Continuous Trespasser Or Bare Licensee On Railroad's Right Of Way, Michigan Law Review

Michigan Law Review

Plaintiff alleged that while he was carefully crossing defendant's right of way, on a clearly defined and well worn footpath, he was struck by defendant's engine, which was backing toward the footpath in a "stealthy manner"; that defendant's servants failed to give warning as they were accustomed to do, or keep a lookout; that the footpath had been habitually used in crossing defendant's right of way for many years, that such crossing had been constant, open, and notorious as defendant knew; and that defendant had never objected to this use. Defendant demurred. Held, demurrer sustained on the ground that …

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Securities Legislation - Public Utility Holding Company Act Of 1935 - Extension Of Maturity Date As New "Issue", Edmund O'Hare May 1939

Securities Legislation - Public Utility Holding Company Act Of 1935 - Extension Of Maturity Date As New "Issue", Edmund O'Hare

Michigan Law Review

Defendant a public utility holding company, wished to obtain a one year extension of the maturity date of its unsecured "5 1/2 % Convertible Investment Certificates" by inducing the holders thereof to assent to such extension in return for a twenty per cent payment of the principal of each certificate. The Securities and Exchange Commission sued to enjoin defendant from using the mails or other instrumentalities of interstate commerce in carrying out its plan, because defendant had not filed a declaration under section 7 of the Public Utilities Holding Company Act of 1935, in connection with the proposed extension. Held …

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Trusts - Right Of Trustee's Wife To Dower In Property Held Subject To Oral Trust - Effect Of Subsequent Memorandum - Dower Where Trustee Has Both Legal And Equitable Interest, Michigan Law Review May 1939

Trusts - Right Of Trustee's Wife To Dower In Property Held Subject To Oral Trust - Effect Of Subsequent Memorandum - Dower Where Trustee Has Both Legal And Equitable Interest, Michigan Law Review

Michigan Law Review

Pursuant to an oral agreement and upon consideration furnished by them, A, B, and C procured land to be conveyed to A by a third party. Six days later A executed a self declaration of trust in the terms of the oral agreement; that he would operate it, and within a specified period sell the property and divide the proceeds between himself, B and C, as beneficiaries. A suit to remove A as trustee culminated in a judicial sale of the property to B and C. In this proceeding by B and C to quiet title, A …

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Monthly Periodical Index, Michigan Law Review May 1939

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

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

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Automobiles - Host-Guest Statutes - "Gross Negligence Or Wilful And Wanton Misconduct'', Michigan Law Review May 1939

Automobiles - Host-Guest Statutes - "Gross Negligence Or Wilful And Wanton Misconduct'', Michigan Law Review

Michigan Law Review

Plaintiff, a guest in defendant's automobile, sustained injuries when defendant attempted to pass a car while approaching the brow of a hill and failed to see an oncoming car until too late to avoid a collision. Although the highway was heavily crowded, defendant had been driving at a speed of sixty-five to seventy miles per hour, and had been passing cars on the straight and over hills, ignoring the protests of his passengers. Defendant appealed from verdict and judgment for plaintiff. Held, with two justices dissenting, that under the statute requiring proof of defendant's "gross negligence or wilful and …

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Corporations - Equitable Intervention In Corporate Affairs - Meaning Of "Internal Management'', Henry L. Pitts May 1939

Corporations - Equitable Intervention In Corporate Affairs - Meaning Of "Internal Management'', Henry L. Pitts

Michigan Law Review

In a recent case before the Court of Appeals of Maryland, Williams v. Salisbury Ice Co., a minority stockholder who had met with defeat in a prior struggle over the control of the defendant, a domestic corporation, filed a bill of complaint asking for the appointment of a receiver to manage the corporation until the rights of creditors and stockholders could be "permanently preserved." It appeared that one Meeker, who was the virtual owner of a competing ice company, had acquired ownership of a majority of the defendant corporation's stock. The defendant was solvent, but the plaintiff's chief source …

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Taxation-Income Tax -Jurisdiction -Trusts - State Tax On Resident Beneficiary's Net Income From Trust Established And Administered By Non-Resident Trustee, Allan A. Rubin May 1939

Taxation-Income Tax -Jurisdiction -Trusts - State Tax On Resident Beneficiary's Net Income From Trust Established And Administered By Non-Resident Trustee, Allan A. Rubin

Michigan Law Review

The state of Virginia imposed an income tax upon the income received by a resident of Virginia as beneficiary of a discretionary trust established and administered in New York by a resident of New York, which state had levied and collected an income tax on the entire income of the trust fund. Petitioner protested the payment of the Virginia tax, alleging the taking of property without due process of law and the denial of equal privileges in contravention of the Fourteenth Amendment of the Federal Constitution. Held, that the tax was valid, since it was ascertained by the beneficiary's …

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Constitutional Law - Public Utilities - Standing Of Public Utilities To Challenge The Constitutionality Of The Tva, Michigan Law Review May 1939

Constitutional Law - Public Utilities - Standing Of Public Utilities To Challenge The Constitutionality Of The Tva, Michigan Law Review

Michigan Law Review

Eighteen electric utilities, with non-exclusive franchises and in direct competition with the TVA in selling power wholesale to municipalities, cooperatives and large industrial plants, sought to enjoin the activities and projects of the TVA and its directors as being unconstitutional and as contravening their rights under the fifth, ninth, and tenth amendments. Fraud, duress, and misrepresentations in securing customers were charged. A court of three judges dismissed the bill, holding that there was no fraud or duress and that the TVA was constitutional. Fourteen utilities appealed to the United States Supreme Court. Held, with Justices Butler and McReynolds dissenting, …

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Front Matter, Michigan Law Review May 1939

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 37, Issue 7 of Michigan Law Review

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The Validity Of Corporate Mortgages Executed For Accommodation, Edward O. Curran May 1939

The Validity Of Corporate Mortgages Executed For Accommodation, Edward O. Curran

Michigan Law Review

The problem of the validity of an accommodation mortgage executed by a corporation--that is, a mortgage or pledge of the property or assets of the corporation for the benefit of another without the receipt by the corporate mortgagor or pledgor of any consideration for the loan of its credit--is one which appears not to have been explored by writers on legal topics. No reason is readily apparent for the obvious dearth of discussion on this subject; the pertinent cases are not too numerous for ready collation and the accommodation mortgage device is itself of practical importance in certain situations in …

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