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Michigan Law Review

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Constitutional Law - Oil And Gas - Validity Of Well-Spacing Act - Proportionate Sharing Of Proceeds By Owners Of Land In Statutory Drilling Unit, Leonard D. Verdier Jr. Apr 1939

Constitutional Law - Oil And Gas - Validity Of Well-Spacing Act - Proportionate Sharing Of Proceeds By Owners Of Land In Statutory Drilling Unit, Leonard D. Verdier Jr.

Michigan Law Review

Acting under the Well-Spacing Act, the Corporation Commission of Oklahoma divided certain rural oil areas into tenacre drilling units. Plaintiff owned six and one-quarter acres of a drilling unit, and the well, located in the center of the unit, was wholly on his land. The statute provided that each of the various owners of tracts making up a drilling unit should share in the oil royalties in the proportion that the acreage of his tract bore to the total acreage of the drilling unit. Plaintiff sought to recover all the royalty on oil produced from the well, contending that the …

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Constitutional Law - Twenty-First Amendment - Validity Of State Statute Discriminating Against Liquor Imports, Benjamin Guille Cox Apr 1939

Constitutional Law - Twenty-First Amendment - Validity Of State Statute Discriminating Against Liquor Imports, Benjamin Guille Cox

Michigan Law Review

A Michigan statute prohibited local dealers from selling beer manufactured in a state designated by the Michigan Liquor Control Commission, acting pursuant to statutory standards, as one which by its laws discriminated against Michigan-made beer. Because Indiana was one of ten states so designated, an Indiana brewing company filed a bill in the federal court to enjoin enforcement of the Michigan statute as unconstitutional under the interstate commerce, equal protection and due process clauses of the Federal Constitution. Held, that the bill should be dismissed, since the statute, even though discriminating among importers, was a valid enactment under the …

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Administrative Adjudication Of Contract Disputes: The Walsh-Healey Act, Walter Gellhorn, Seymour L. Linfield Apr 1939

Administrative Adjudication Of Contract Disputes: The Walsh-Healey Act, Walter Gellhorn, Seymour L. Linfield

Michigan Law Review

The ashes of the National Recovery Act were scarcely cool before evils, sought to be abated by the statute, once more manifested themselves in virulent form. Temptation to increase hours of labor, often with the accompaniment of sharp reductions in wages, and to utilize more freely the services of child laborers, was resisted by many employers. But it was resisted with ever diminishing success in the face of grim competition for a none too voluminous business. Out of disillusion and disappointment was born the Walsh-Healey Act, to salvage from the Blue Eagle at least a few of its less conspicuous …

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Some Aspects Of Intangibles Taxation In Michigan, Robert S. Ford Apr 1939

Some Aspects Of Intangibles Taxation In Michigan, Robert S. Ford

Michigan Law Review

If any new form of taxation is adopted at the present session of the Michigan legislature, it is likely to be a low rate tax on intangible personal property. Several bills authorizing such a tax have been introduced at legislative sessions in the past, but public sentiment is probably more favorable now than at any other time. Just recently the Tax Study Commission, which was appointed last year by Governor Murphy, recommended that "appropriate legislation" be enacted for the imposition of a low rate tax on intangibles. It is the purpose in this article to analyze briefly some of the …

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Intentional Infliction Of Mental Suffering: A New Tort, William L. Prosser Apr 1939

Intentional Infliction Of Mental Suffering: A New Tort, William L. Prosser

Michigan Law Review

It is time to recognize that the courts have created a new tort. It appears, in one disguise or another, in more than a hundred decisions, the greater number of them within the last two decades. Of course there is no necessity whatever that there should be separate torts, or that a tort must have a name; but if a name must be found for this one, we might do worse than to borrow a word from the vernacular of Kentucky and points south, and call it "orneriness." It is something very like assault. It consists of the intentional, outrageous …

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International Law - Effect Of Recognition - Statute Of Limitations, John N. Seaman Apr 1939

International Law - Effect Of Recognition - Statute Of Limitations, John N. Seaman

Michigan Law Review

In 1917, the Provisional Government of Russia, which was recognized by the United States, had on deposit with defendant bank a large sum of money. During that year the Provisional Government was overthrown by the Soviet Government, and the bank decided to repudiate the debt, because deposits which the bank held in Russia had been confiscated to an amount exceeding that of the debt. The United States continued to recognize the Provisional Government as the de jure government of Russia until 1933. Before 1922, the bank communicated notice of the repudiation several times to Ambassador Bakhmeteff, representing the Provisional Government, …

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Insurance -- Effect Of The Passenger-For-Hire Clauses On Scope Of Protection Under Automobile Insurance Policies, Benjamin G. Cox Apr 1939

Insurance -- Effect Of The Passenger-For-Hire Clauses On Scope Of Protection Under Automobile Insurance Policies, Benjamin G. Cox

Michigan Law Review

Quite common in automobile policies insuring against risks of fire, theft, collision, personal liability, etc., from the use of the automobile is a provision either effecting a termination of the policy or excluding the particular loss from the coverage of the policy if or when the automobile is used to carry passengers for hire or consideration. The full purport of this type passenger clause is unfortunately too often not realized by the insured person until he is met with a loss, unforeseen and against which he believed himself to be protected. This comment, then, will attempt an analysis of the …

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Bankruptcy - Corporate Reorganization - "Good Faith" In Presenting Petitions For Reorganization Proceedings, Arthur P. Boynton Apr 1939

Bankruptcy - Corporate Reorganization - "Good Faith" In Presenting Petitions For Reorganization Proceedings, Arthur P. Boynton

Michigan Law Review

Reorganization proceedings for corporations are now provided for in chapter ten of the recently enacted Chandler Act, which supersedes the provisions of 77B. This legislation, designed to aid corporations which are insolvent or unable to meet their debts as they mature, is available to all commercial corporations except municipal, insurance, and banking corporations and railroad corporations authorized to file a petition under section 77 upon the proper showing. Sections 130 and 131 enumerate the necessary requirements of any petition filed for the purpose of obtaining reorganization. However, the most important prerequisite to this relief, from the standpoint of difficulty in …

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Trusts - Termination By Consent Of Beneficiaries - Who Are Beneficiaries - Acceleration Of Equitable Remainders, Richard S. Brawerman Apr 1939

Trusts - Termination By Consent Of Beneficiaries - Who Are Beneficiaries - Acceleration Of Equitable Remainders, Richard S. Brawerman

Michigan Law Review

It is the purpose of this comment to consider the destructibility of trusts for successive beneficiaries where the settlor has not expressed his intention with respect to the matter. It will appear that two questions are involved: First, what is the settlor's purpose for the trust? Second, who are beneficiaries?

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Constitutional Law - Intoxicating Liquors - Power Of A State To Regulate And Tax The Sale And Import Of Liquor In A National Park, Stanton J. Schuman Apr 1939

Constitutional Law - Intoxicating Liquors - Power Of A State To Regulate And Tax The Sale And Import Of Liquor In A National Park, Stanton J. Schuman

Michigan Law Review

California ceded to the United States the territory within the state borders known as Yosemite Park, reserving to the state the right to "tax persons and corporations, their franchises and property on the lands included in said parks." California then laid excise and license taxes on the sale and importation of intoxicating liquors. The tax act contained some regulatory measures and the license was granted only after certain regulations were satisfied. T was an operator of stores and tourists' camps in the park who protested payment of these taxes. Held, the tax provisions were enforceable; but the regulatory provisions …

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Bills And Notes - Consideration - Burden Of Proof When Holder Not A Holder In Due Course, Robert Meisenholder Apr 1939

Bills And Notes - Consideration - Burden Of Proof When Holder Not A Holder In Due Course, Robert Meisenholder

Michigan Law Review

Plaintiff, a maid and housekeeper for the decedent, sued the decedent's estate as payee of two checks signed by the decedent and dishonored by the drawee bank. In support of the defense of lack of consideration, the estate introduced evidence that plaintiff had been paid by the estate for her services to the decedent, and that plaintiff's daughter had told the bank's cashier that the checks had been given to her mother by decedent to be cashed when it became certain that decedent would not live. There was no other evidence. Held, the trial court properly directed a verdict …

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Corporations - Physicians And Surgeons - Insurance - Sale Of Professional Services By A Corporation, Charles H. Haines Jr. Apr 1939

Corporations - Physicians And Surgeons - Insurance - Sale Of Professional Services By A Corporation, Charles H. Haines Jr.

Michigan Law Review

The Group Health Association, a corporation for the mutual benefit of its members, employed licensed physicians to give medical care to its members. For a lump sum consideration of $40,000 the association agreed to extend similar medical and hospital services to such employees of the Home Owners' Loan Corporation office as paid the monthly fee. In fear of quo warranto proceedings by the district attorney for illegal practice of medicine and by the superintendent of insurance for selling insurance, the association sought a declaration of its right to provide medical services in this manner. Held, a non-profit corporation through …

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Corporations - Right Of The Registrant To Withdraw A Registration Statement Under The Securities Act Of 1933, Arthur A. Greene Jr. Apr 1939

Corporations - Right Of The Registrant To Withdraw A Registration Statement Under The Securities Act Of 1933, Arthur A. Greene Jr.

Michigan Law Review

One day after the registration statement filed by the corporation became effective, the Securities and Exchange Commission ordered a hearing to determine whether or not a stop order should be issued to suspend the effectiveness of the registration statement. Various issues of the same stock which registrant proposed to issue had been sold on the market, prior to the filing of the registration statement. During the hearings the corporation filed a motion to withdraw its registration statement. The motion was denied. The Securities and Exchange Commission applied to the district court for an order to compel obedience to its subpoena …

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Interstate Commerce - Discrimination Between Shippers By Providing Non-Transportation Services At Less Than Cost, Thomas K. Fisher Apr 1939

Interstate Commerce - Discrimination Between Shippers By Providing Non-Transportation Services At Less Than Cost, Thomas K. Fisher

Michigan Law Review

In order to increase the use of rail transportation, seven railroads with terminals at the Port of New York expended a total of $35,000,000 in construction of warehouse and docking facilities. Charges for leases, storage (both in and out of the transit privilege), handling and insurance were found by the Interstate Commerce Commission to be non-compensatory. The commission further found that the below-cost warehouse rates were not available to all shippers alike. Upon an appeal by the carriers from a three-judge court's dismissal of their petition to enjoin enforcement of a cease and desist order issued by the commission, it …

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Negligence - Contributory Negligence Of Children, Russel T. Walker Apr 1939

Negligence - Contributory Negligence Of Children, Russel T. Walker

Michigan Law Review

In an action for damages for injuries sustained by a boy six years and seven months of age through the alleged negligence of defendant, held, the court would not rule as a matter of law that a child of this age could not be contributorily negligent; it would leave the question of plaintiff's contributory negligence to the jury with instructions that a child can only be held to that degree of care which could reasonably be expected from a child of his own age, ability, and understanding under like circumstances. A vigorous dissent upheld the common-law rule that, as …

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Principal And Agent - Liability Of Agent On A Written Contract In His Own Name, Henry L. Pitts Apr 1939

Principal And Agent - Liability Of Agent On A Written Contract In His Own Name, Henry L. Pitts

Michigan Law Review

The plaintiff, a football coach, entered into a written contract with the defendant whereby the plaintiff was employed to act as coach and director of athletics for a period of ten years at any college in the city of New Orleans designated by the defendant. In the event of non-employment of the plaintiff by any of such colleges, the plaintiff was to advise the defendant in any athletic matters with which the defendant might be concerned. The defendant covenanted to pay a stipulated salary. In pursuance of this contract, the plaintiff served as coach at Loyola University in New Orleans …

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Public Utilities - Franchises - Enforceability Against Utility Of Franchise Provision Regarding Rates When City Is Not Bound, Menefee D. Blackwell Apr 1939

Public Utilities - Franchises - Enforceability Against Utility Of Franchise Provision Regarding Rates When City Is Not Bound, Menefee D. Blackwell

Michigan Law Review

The charter of the city of Texarkana, Texas, provided that none of the privileges usually granted public utilities should be enjoyed in the city except such as were permitted by franchise given by the city council, and that such franchises should expressly reserve the right of regulating the utilities. The city entered a franchise agreement with respondent utility by which rates charged in the Texas city were not to be higher than those charged in another part of the city which was in Arkansas. The Arkansas rates were lowered by judicial action, and this proceeding was to enforce the lower …

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Sales - Effect Of Buyer's Insolvency On Seller's Duty To Deliver Or Tender Goods, John H. Uhl Apr 1939

Sales - Effect Of Buyer's Insolvency On Seller's Duty To Deliver Or Tender Goods, John H. Uhl

Michigan Law Review

The plaintiff ordered goods from the defendant for immediate delivery, terms, $1,500 down, balance in three and six months, notes being given for the unpaid balance. The defendant accepted the order. When the check which the plaintiff gave for the down payment was dishonored, the defendant investigated his financial condition and discovered that there were a number of unsatisfied judgments against him. On learning this, the defendant notified the plaintiff that he could not make the sale on credit but would do so on a cash basis. Upon the plaintiff's refusal to accede, the defendant notified him that the order …

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Taxation - Income Tax - Deductions - Ordinary And Necessary Business Expenses - Commissions Paid To Senator For Securing Public Contracts, Ralph E. Helper Apr 1939

Taxation - Income Tax - Deductions - Ordinary And Necessary Business Expenses - Commissions Paid To Senator For Securing Public Contracts, Ralph E. Helper

Michigan Law Review

Taxpayer, a gravel company, employed as salesman a state senator, who obtained several contracts with the State Highway Commission of Louisiana. The Board, of Tax Appeals disallowed deductions for the commissions paid therefor, on the ground that the payments were for using personal influence with a governmental department, pursuant to a contract which is contrary to public policy. Held, in absence of evidence that the state senator agreed to or attempted to use any personal or political influence, the commissions paid to him are deductible business expenses. Alexandria Gravel Go., Inc. v. Commissioner of Internal Revenue, (C. C. …

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Zoning - Construction Of Ordinance Restricting District To Residences - Rooming House As Business, S. R. Stroud Apr 1939

Zoning - Construction Of Ordinance Restricting District To Residences - Rooming House As Business, S. R. Stroud

Michigan Law Review

Plaintiff purchased the property in question on January 26, 1934. The property was subject to restrictive covenants, running with the land until January 26, 1930, which prohibited use for "any trade or business whatsoever or any boarding house." On August 18, 1922, a temporary zoning ordinance of the city of Long Beach was adopted to retain the advantages secured by the restrictive covenants. This was followed by a permanent zoning ordinance on July 8, 1930. Under the permanent zoning ordinance the property in question was included in "Residence A" district which was restricted to "a one family detached house for …

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Monthly Periodical Index, Michigan Law Review Apr 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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Taxation - Social Security - Dissolution Of Corporation And Formation Of Partnership As Means Of Avoiding Tax, Arthur P. Boynton Apr 1939

Taxation - Social Security - Dissolution Of Corporation And Formation Of Partnership As Means Of Avoiding Tax, Arthur P. Boynton

Michigan Law Review

The O Company surrendered its corporate charter and began operating under an agreement purporting to establish a partnership relation between the former officers and employees whereby complete management including the power to employ, discharge and control the duties of its members was vested in a "board of control" elected by and subject to changes made by the majority in interest. Net profits and losses were shared in proportion to the respective interests. The firm could be dissolved only by a vote of the majority in interest and not by transfer of interest, death or resignation of a member. Advice was …

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Torts - Liability Of Landlord For Injury To Property Of Tenant's Customer, Arthur P. Boynton Mar 1939

Torts - Liability Of Landlord For Injury To Property Of Tenant's Customer, Arthur P. Boynton

Michigan Law Review

A customer of the tenant sued the landlord for damage, to fur coats left with the tenant in the normal course of his business, from water, due to a leaky condition of the roof of the building which was in the control of landlord. Held, that it was the duty of the landlord to exercise reasonable care to keep the roof in reasonable repair not only as regards the safety of persons in the building but also as respects property lawfully there; that this duty was not performed and the damage resulted therefrom. Whelkin Coat Co. v. Long Beach …

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Principal And Agent - Extent To Which An Agent May Testify As To The Existence Of The Agency, Arthur A. Greene Jr. Mar 1939

Principal And Agent - Extent To Which An Agent May Testify As To The Existence Of The Agency, Arthur A. Greene Jr.

Michigan Law Review

The legal concept that opinions of lay witnesses are not admissible evidence is of comparatively recent origin, and a matter of historical accident. The theory underlying the exclusion of opinions of laymen is not one of qualification, but of policy. If the witness testifies as to the facts, his opinion or inference is superfluous, as it is the function of the jury to draw the inferences. The testimony of the agent to the existence of the agency relation is limited by this general rule. It is the purpose of this discussion to determine the line of demarcation between opinion and …

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Carriers - State Taxation Of Interstate Motor Carriers, Thomas K. Fisher Mar 1939

Carriers - State Taxation Of Interstate Motor Carriers, Thomas K. Fisher

Michigan Law Review

Appellant, an Ohio corporation, was engaged exclusively in interstate commerce as a common carrier of property for hire by motor vehicle. In 1937 the Georgia legislature passed a Maintenance Tax Act which provided, inter alia, for a tax, graduated according to manufacturer's rated capacity, on each motor common carrier for hire, and a tax, substantially smaller in the respective rated capacities, on each motor vehicle not used as a common carrier for hire. Appellant contested the validity of the tax on the grounds that it was repugnant to the commerce clause of the Constitution and that it violated the equal …

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Contracts - Consideration - The Rule Of Foakes V. Beer Discarded, Arthur A. Greene Jr. Mar 1939

Contracts - Consideration - The Rule Of Foakes V. Beer Discarded, Arthur A. Greene Jr.

Michigan Law Review

In an action on a promissory note, by an indorsee who was not a holder in due course, the defendant pleaded the following facts. In 1930 the payee held the promissory note of the defendant, who was known to be hopelessly insolvent. An agreement was thereupon made and executed between the payee, the plaintiff and defendant, whereby the plaintiff agreed to purchase the note from the payee in exchange for his automobile. The defendant in turn agreed to turn over to the plaintiff certain livestock or produce, to pay a certain balance in cash, and also to pay the license …

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Municipal Corporations - Liability To Abutting Property Owner For Negligence In Spraying Trees On Highway, Arthur A. Greene Jr. Mar 1939

Municipal Corporations - Liability To Abutting Property Owner For Negligence In Spraying Trees On Highway, Arthur A. Greene Jr.

Michigan Law Review

The defendant, a municipal corporation, used a poison spray on the trees on the highway under the authority and express duty of certain statutes that declared browntail moths and other insects a nuisance. This was done in such a manner that a part of the spray fell on the abutting land of the plaintiff, and caused the death of her poultry. The plaintiff instituted this action, relying on two counts, one alleging negligence and the other alleging an unreasonable use of the highway. Held, that the plaintiff could not recover on the first count because the abatement of this …

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Negligence - Violation Of Statute As Negligence Per Se - Exceptions To The Doctrine, John C. Griffin Mar 1939

Negligence - Violation Of Statute As Negligence Per Se - Exceptions To The Doctrine, John C. Griffin

Michigan Law Review

Plaintiff's intestate was driving along the main thoroughfare when B drove into the main highway from a side street without stopping, thereby colliding with the automobile of the intestate. Two days prior to this accident an automobile owned by S negligently collided with one of the defendant's buses with the consequence that defendant's bus, without negligence on defendant's part, knocked down an arterial stop sign. This stop sign had been erected at the intersection of the main highway and the side street out of which B drove his car. A Washington statute made anyone who should deface, mutilate, tear down, …

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Prohibition - Is The Writ Of Prohibition A Prerogative Writ?, Russel T. Walker Mar 1939

Prohibition - Is The Writ Of Prohibition A Prerogative Writ?, Russel T. Walker

Michigan Law Review

The writ of prohibition originally issued from the king's temporal courts to the ecclesiastical courts to prevent any usurpation of jurisdiction of the king's courts by the spiritual courts. Prohibition has been classed as one of the prerogative writs, that is, a writ issued by the extraordinary power of the sovereign to interfere with private rights in order to preserve the prerogatives and franchises of the state. The writ of prohibition differed historically from the other prerogative writs in that its issuance was not discretionary with the court, but rather it was held to issue as a matter of right …

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Labor Law - Right Of Employer Guilty Of Unfair Labor Practices To Discharge For Illegal Acts, John C. Griffin Mar 1939

Labor Law - Right Of Employer Guilty Of Unfair Labor Practices To Discharge For Illegal Acts, John C. Griffin

Michigan Law Review

During a membership drive in the Fansteel Metallurgical plants, the petitioner corporation was guilty of an unfair labor practice in that it hired espionage agents to spy upon the union. Lodge 66 attempted to bargain collectively with the petitioner and on its rejection of their offer, the union seized the key plants, effectively stopping production. The petitioner, on the union's refusal to vacate, made a blanket discharge of everyone within the plant, and secured an injunction against the union's possession. Compliance with the order was not obtained, and a writ of attachment for contempt was issued. On the second attempt …

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