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Michigan Law Review

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Landlord And Tenant-Liability Of Lessee For Breach Of Contract- Measure Of Damages Jan 1936

Landlord And Tenant-Liability Of Lessee For Breach Of Contract- Measure Of Damages

Michigan Law Review

Defendant, lessee under a contract providing for payment of rents monthly in advance, moved out before expiration of the term and gave notice of refusal to comply further with the terms of the lease. Plaintiff, lessor, elected to treat the failure to pay the installment then due as a present breach of the contract and sued for damages. Defendant claimed that the contract had become unilateral after plaintiff's performance in conveying the leasehold which would give grounds for an anticipatory breach which defendant claimed was the theory of plaintiff's action. On defendant's demurrer to the complaint, it was held that …


Patents - Infringement - Estoppel Based On Prior Interference Proceedings Jan 1936

Patents - Infringement - Estoppel Based On Prior Interference Proceedings

Michigan Law Review

The defendant was sued for infringement of certain basic process patents held by plaintiff corporation covering the recording of sound upon motion picture film. The defendant had applied for a patent for substantially this invention, but had lost in interference proceedings declared between him and the plaintiff here, who had also applied at about the same time. Because of these acts of applying and contesting interference proceedings, plaintiff here claimed that defendant was now estopped to set up in defense to this suit the non-patentable nature of the invention. Held, that the patent was invalid for anticipation and that …


Quasi Contracts-Mistake-Recovery Of Money Paid In Settlement Of Disputed Claim Jan 1936

Quasi Contracts-Mistake-Recovery Of Money Paid In Settlement Of Disputed Claim

Michigan Law Review

Defendant, who had not heard from her husband during seven years of separation, believed that he had lost his life in the sinking of a car ferry owned by the plaintiff, because a man employed by plaintiff on the car ferry was registered on plaintiff's books under a name similar to one which defendant's husband had occasionally used. After defendant started suit against plaintiff for damages, plaintiff, believing that the deceased was the husband of the defendant, paid $4000 to defendant and received a release of all claims. Subsequent investigation, made after inquiry by the real wife of the deceased, …


Trusts-"Swelling Of Assets" Theory In Tracing Misapplied Funds Jan 1936

Trusts-"Swelling Of Assets" Theory In Tracing Misapplied Funds

Michigan Law Review

Plaintiff's husband gave certain bonds to a college, to be held in trust until the death of the donor and his wife, and then to be added to the endowment funds of the college. The college was also to pay an annuity to the donor while he lived, and to his wife for life if she survived him. The cestui was given a right to revoke the trust and take back the bonds if the annuity was not paid. The college, without notice to the cestui, sold the bonds and used the funds to install a heating plant in its …


Book Notes, Michigan Law Review Jan 1936

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.


Evidence -Admissibility Of Statements Of Fact Made During Negotiation For Compromise, John E. Tracy Jan 1936

Evidence -Admissibility Of Statements Of Fact Made During Negotiation For Compromise, John E. Tracy

Michigan Law Review

At present, the various jurisdictions hold with comparative uniformity that while offers to settle a dispute are not admissible in evidence, statements of independent fact made during such compromise negotiation are admissible. The routes of logic by which the courts arrive at this similarity in result are marked by some fundamental differences, as will be shown later, but the result is the same under any theory. The question therefore presents itself, whether the distinction made by the courts between the admissibility of offers to compromise and statements of fact made during compromise negotiations can be justified under a system of …


Constitutional Law-National Power Over Navigable Streams - Property Clause - Corporations - Stockholders' Suit Jan 1936

Constitutional Law-National Power Over Navigable Streams - Property Clause - Corporations - Stockholders' Suit

Michigan Law Review

The recent decision of the Supreme Court in the TVA case raises issues of extreme importance not only in regard to the interpretation of the property clause of the federal Constitution, but also in regard to the requisites for a suit by minority stockholders of a corporation questioning the actions of the corporate management.


Contracts-Misunderstanding-Misrepresentation Of The Contents Of A Written Offer Jan 1936

Contracts-Misunderstanding-Misrepresentation Of The Contents Of A Written Offer

Michigan Law Review

Ordinarily, a man who signs a written contract is bound by its terms in the absence of a misrepresentation of the contents of the writing or mutual mistake, although he may be under a misapprehension in regard to what the writing contains. This is true though the signer cannot read because of illiteracy or blindness. The law, proceeding on an objective theory of mutual assent, holds that it is his duty to read, or, if unable to do so, to get someone else to read for him. But, while unilateral misunderstanding not known to or caused by the other party …


Taxation-Right Of Federal Taxpayer To Question Validity Of A Federal Tax-Effect Of Section 3224 Of The United States Revised Statutes Jan 1936

Taxation-Right Of Federal Taxpayer To Question Validity Of A Federal Tax-Effect Of Section 3224 Of The United States Revised Statutes

Michigan Law Review

Quite apart from the merits of the controversy, the recent decision of the Supreme Court in the Hoosac Mills case presented the interesting problem of the taxpayer's standing in court to question the validity of a federal tax. The problem is really twofold. First, may the taxpayer enjoin the collection of the tax? Second, assuming that he may not, what steps must he take before he can get a refund of the amount that he has paid?


Constitutional Law-Application Of Joint Resolution Of Congress To Gold Clause In Bonds Of Corporations Of Other Countries Jan 1936

Constitutional Law-Application Of Joint Resolution Of Congress To Gold Clause In Bonds Of Corporations Of Other Countries

Michigan Law Review

Plaintiff, a South American corporation, brought suit to recover on bearer bonds of a Finland corporation sold to plaintiff in New York. The bonds contained the stipulation that they were to be paid "in gold coin of the United States of America of the standard of weight and fineness as it existed on July 1, 1924." Both the principal and interest on these bonds were payable in New York. Held, the Congressional Joint Resolution declaring gold clauses in obligations to be against public policy and providing for discharging such obligations on payment, dollar for dollar, of legal tender coin, …


Municipal Corporations-Constitutionality Of Municipal Debt Readjustment Act Jan 1936

Municipal Corporations-Constitutionality Of Municipal Debt Readjustment Act

Michigan Law Review

To avail itself of the remedial provisions of the National Bankruptcy Act as amended by section 80, the Imperial Irrigation District, a taxing district within the State of California, filed a petition for the readjustment of its debts. Pursuant to the requirements of section 80 the petition alleged that the District was unable to meet its debts and that a plan of readjustment had been accepted by 87.31 per cent of the creditors. Contestants, owners of petitioners' bonds, intervened. Held, section 80 of the National Bankruptcy Act as applied to the readjustment of the debts of an irrigation district …


Trusts-Process By Which Creditor May Reach Cestui's Interest In Spendthrift Trust Jan 1936

Trusts-Process By Which Creditor May Reach Cestui's Interest In Spendthrift Trust

Michigan Law Review

The former husband of the principal defendant created a trust for her benefit with a clause restraining alienation and barring attachment by creditors. Plaintiff, holding a judgment against the cestui que trust, brought a creditor's bill in equity against the trustee and cestui. Held, creditor's bill dismissed, but the exemption of cestui's interest from the claims of creditors was invalid, and plaintiff might recover by amending and bringing an action at law with trustee process. Brahmey v. Rollins, (N. H. 1935) 179 A. 186.


Contracts - Rewards -Apportionment Among Claimants Acting Severally Jan 1936

Contracts - Rewards -Apportionment Among Claimants Acting Severally

Michigan Law Review

When a reward has been offered for the apprehension of a criminal, arrest is frequently effected by the combined efforts of persons acting independently of each other. Action among the captors is necessarily independent when apprehension depends upon the contribution of bits of information in the possession of persons who are scattered over a wide area and who have no acquaintance with each other. Furthermore, in the nature of things information is apt to be scattered because a criminal attempting to cover his escape will leave only a few tell-tale clues along the path of his flight. When arrest has …


Administrative Law-Operation Of Federal Statute Creating Presumption Against Suicide In Compensation Cases Jan 1936

Administrative Law-Operation Of Federal Statute Creating Presumption Against Suicide In Compensation Cases

Michigan Law Review

A carpenter making repairs nearby, hearing a sharp report followed by groans, found plaintiff's husband lying upon the floor. He died without recovering consciousness from a bullet wound through the breast. The pistol to which the fatal bullet was traced lay in a partly closed drawer which was spattered with blood as was the counter near by. The ejected shell lay some feet away in the position where it would be found had the pistol been discharged directly in front of deceased's breast. There were powder burns on his clothes. Contradictory evidence of deceased's mental state was adduced toward the …


Easements-Implied Grant-Right Of Way-Discontinuous Jan 1936

Easements-Implied Grant-Right Of Way-Discontinuous

Michigan Law Review

Plaintiff's testator owned a tract of land on which there were two houses. In 1897 he sold one house, which came to the defendant by various mesne conveyances. Defendant's property was narrow, the sole means of access to the rear of the house being a driveway, wholly situated on the land retained, now owned by the plaintiff. From the time of its erection all occupants of defendant's dwelling had used the driveway as a means of hauling coal and wood to the rear of the house. Plaintiff sought to restrain this use and defendants claimed an implied easement, by grant, …


Powers-Exercise Of Power By Residuary Clause In Will-Admissibility Of Evidence To Show Donee's Intent Jan 1936

Powers-Exercise Of Power By Residuary Clause In Will-Admissibility Of Evidence To Show Donee's Intent

Michigan Law Review

Testator was the donee of general powers of appointment conferred upon him by his mother's deed and will. By the ninth clause of this will he gave to two named persons "all the rest and residue of my personal property . . . to be divided equitably among the members of said two families as they may in their uncontrolled discretion decide." Held, this did not exercise the powers of appointment. Evidence was admitted to show the testator's knowledge of the nature and scope of his property and of the fact that his estate was being diminished by the …


Specific Performance-Failure Of Vendor's Title Jan 1936

Specific Performance-Failure Of Vendor's Title

Michigan Law Review

The defendant leased his ice plant to the plaintiff with an option to purchase at a certain price and to pay an additional $50 in ice at the market price for the "east 15 ft. of lot 4." The plaintiff exercised the option and performed all the conditions. The defendant failed to execute a deed to the "east 15 ft. of lot 4," claiming that he did not own it, although he had accepted part of the purchase price for the parceI not owned and it was necessary for the operation of the ice plant. In an action for specific …


Trusts-Deviation From Terms Of Trust In Emergency Jan 1936

Trusts-Deviation From Terms Of Trust In Emergency

Michigan Law Review

In his will the testator made several specific legacies, including one to his widow, who was also to receive a specific devise of real estate. The remainder of the estate was given in trust, to pay the income to the widow during her life. It was also provided that in case there was not sufficient money to pay the bequests, the trustees "shall dispose of my real estate, but not for a period of three years after my decease, if they deem it necessary and proper" and payment of the bequests in that case was not to be made till …


Wills-Construction-"Personal Property" As Including Real Estate Jan 1936

Wills-Construction-"Personal Property" As Including Real Estate

Michigan Law Review

Testatrix, a German woman, not particularly familiar with the English language, drew a holographic will making certain specific bequests of money and bonds and concluding by giving all her "personal property" to three named beneficiaries. Testatrix died leaving both realty and personalty. Held, both realty and personalty passed under the term "all my personal property." "My personal property" was construed to mean "my own property." In re Olsen's Estate, (Cal. App. 1935) 50 P. (2d) 70.


Administrative Tribunals - Distinction In Legal Effect Between Legislative And Quasi-Judicial Orders Of The Interstate Commerce Commission Jan 1936

Administrative Tribunals - Distinction In Legal Effect Between Legislative And Quasi-Judicial Orders Of The Interstate Commerce Commission

Michigan Law Review

The legal effect of orders of the Interstate Commerce Commission involves questions upon which there has been much dictum and considerable confusion of the issues. The result has been a body of law which, if not carefully explored, may prove to be a trap for the unwary. In the past few years, however, it is apparent that the courts are making more definite pronouncements which are more clearly pointing the way to distinguishing the various possible issues. The confusion unquestionably results from the heterogeneous nature of the functions performed by the Commission. A typical example is the rate-making function. It …


Unfair Competition-Misrepresentations By A Competitor Of The Quality Or Character Of His Own Product Jan 1936

Unfair Competition-Misrepresentations By A Competitor Of The Quality Or Character Of His Own Product

Michigan Law Review

The plaintiff, an exclusive licensee under certain patents, manufactures the "Purolator" oil filter. The A. C. Filter produced by the defendant was adjudged to be an infringement of plaintiff's patent rights and a permanent injunction was granted. Defendant then changed the internal construction of its oil filter without changing the shape, color, marking or appearance and thereafter sold the changed device representing that it was the same as the earlier infringing one. From a decree of the lower court dismissing plaintiff's bill alleging unfair competition, plaintiff appealed. Held, injunction granted restraining defendant from falsely representing the filter it is …


Corporations - Stock And Stockholders - Transfer Of Stock - Right To Vote Jan 1936

Corporations - Stock And Stockholders - Transfer Of Stock - Right To Vote

Michigan Law Review

Upon the decease of the record owner of shares of the common stock of Canal Construction Company petitioner caused the stock to be transferred upon the books of the corporation to his name as administrator. Certificates were indorsed for transfer and delivered to the distributees of the estate. The recipients of certain of the certificates neglected "to present them for transfer on the stock books of the corporation. When a contest subsequently developed over the election of directors, the petitioner attempted to vote the shares standing in his name as administrator. The ballot was rejected and petitioner brought the proceeding …


Contracts - Fraud - Waiver Of Deceit Action By Continued Performance Jan 1936

Contracts - Fraud - Waiver Of Deceit Action By Continued Performance

Michigan Law Review

Legal protection in contracts induced by fraud is subject to the important qualification that continued performance after discovery of the fraud may result in a "waiver" of the damage remedy for deceit. This doctrine, well established in modern law, is not based on any supposed inconsistency between continued performance and damages for deceit. Both continued performance and the deceit remedy are predicated upon the theory of affirmance of the contract, and no election between them is required. Nor is the doctrine of "waiver" of damages in deceit to be confused with the totally different rule that continued acceptance of the …


Search And Seizure - Burden Of Proving Illegality Of Search For Purpose Of Suppressing Evidence Jan 1936

Search And Seizure - Burden Of Proving Illegality Of Search For Purpose Of Suppressing Evidence

Michigan Law Review

Defendant was charged with unlawful possession of five mink skins during the closed season. His motion made before trial to suppress the evidence because of unlawful seizure was denied. He was convicted, and now appeals assigning the refusal to suppress the evidence as error. Held, judgment affirmed. The court said, "Upon a motion to suppress evidence because of an unlawful seizure, the burden of establishing that his rights have been transgressed is upon the party asserting such transgression." State v. Drew, 217 Wis. 216, 257 N. W. 681 (1934).


Municipal Corporations-Regulation Of Gas Stations-Delegation To Property Owners Of Power To Modify Zoning Restrictions Jan 1936

Municipal Corporations-Regulation Of Gas Stations-Delegation To Property Owners Of Power To Modify Zoning Restrictions

Michigan Law Review

A city ordinance prohibited the installation of gasoline filling stations within the city except after obtaining the written consent of 51 per cent of the property owners within a radius of six hundred feet from the site. Relator, without obtaining the required consent, asked for a writ of mandamus, which was refused. The court held the regulation not arbitrary but substantially relating to the public safety and welfare, and not a delegation of legislative powers. State ex rel. Standard Oil Co. v. Combs, 129 Ohio St. 251, 194 N. E. 875 (1935).


Evidence-Privilege-Husband And Wife-Attorney And Client Jan 1936

Evidence-Privilege-Husband And Wife-Attorney And Client

Michigan Law Review

A husband and wife are involved in marital difficulties. Together they consult an attorney in an effort to compromise their dispute, or failing in that, to arrange a property settlement prior to separation or divorce. Such a joint consultation may be for any one of a variety of purposes. In a later action, for divorce or separate maintenance for example, the question arises whether either the attorney or one of the spouses can disclose words spoken by the other spouse in the consultation. For instance, can the attorney or the husband disclose the wife's admission of adultery?


Equity-Rescission For Fraud-Equitable Lien In Aid Of Restitution Jan 1936

Equity-Rescission For Fraud-Equitable Lien In Aid Of Restitution

Michigan Law Review

Defendant had an option to buy certain land at $95 per acre. He induced the plaintiff to take 100 acres at $300 per acre by fraudulently representing the land to be of the same value and quality as some he had previously sold her, and by concealing the existence of the option. Defendant used $20,000 of plaintiff's money to purchase and improve another tract of land as a homestead. Plaintiff seeks to have the contract of purchase rescinded and to secure a lien on the homestead. Held, conveyance of the 100 acre tract rescinded and title to it restored …


Corporations-Validity Of Option To Convert Preferred Stock Into Mortgage Bonds Jan 1936

Corporations-Validity Of Option To Convert Preferred Stock Into Mortgage Bonds

Michigan Law Review

A corporation issued preferred stock, with a fixed dividend rate, power to elect a director voting as a class, and an option in the holder to convert, at his election, into mortgage bonds which were issued at the same time. After a substantial indebtedness had been incurred by the corporation, the stockholders exercised their option to convert into bonds. The corporation then went into bankruptcy, and in reorganization proceedings, the bondholders claim a preference over general creditors. Held, that the former holders of the preferred stock were stockholders and not creditors of the corporation and that, in the absence …


Survival Of Actions-Effect Of Plaintiff's Death On Cause Of Action Under Sherman Act-Availability Of Quasi-Contract Remedy Jan 1936

Survival Of Actions-Effect Of Plaintiff's Death On Cause Of Action Under Sherman Act-Availability Of Quasi-Contract Remedy

Michigan Law Review

Testator had incurred losses on contracts for the sale of corn due to a conspiracy and "corner" of the market by defendants. He sued at law to recover treble damages under the Sherman Anti-Trust Act for an "injury to property." Pending the appeal, testator died, and his administrators on petition were substituted in his stead. Defendants claimed that the cause of action, which was in tort, abated upon testator's death and did not survive. Held, on the basis of the statute, 4 Edw. III, c. 7, which was to be considered part of the common law and which did …


Constitutional Law-Taxation-Equal Protection-Privileges And Immunities Under The Fourteenth Amendment Jan 1936

Constitutional Law-Taxation-Equal Protection-Privileges And Immunities Under The Fourteenth Amendment

Michigan Law Review

Reports having shown that Vermont capital for investment purposes was, due to the existing tax system, being driven out of the state, and that it was difficult to obtain capital from outside at low rates, a statute was enacted which was expected to remedy the difficulties by providing that interest up to five per cent on loans made within the state should be exempt from taxation while income from loans made outside the state should be taxed at a set rate. In a proceeding to test the validity of the measure, the state court upheld the tax, but on appeal …