Law Commons^™

Criminal Law And Procedure - Interpretation Of Statute, Michigan Law Review

Michigan Law Review

Convicted of the statutory crime of falsely uttering a bank check, defendant appealed on the ground that the instrument in question was a promissory note. It was in appearance and form a check except for the substitution of "will pay" for "pay" and the addition of the words "payable at" before the name of the bank. Held, affirmed, the court construing the instrument as a check. State v. Doudna, (Iowa, 1939) 284 N. W. 113.

Banks And Banking - Duty Of Depositor To Determine Status Of His Account, James D. Ritchie

Michigan Law Review

Plaintiff's bookkeeper, who, as defendant bank admittedly knew, had authority only to indorse and deposit commission checks to plaintiff's account, embezzled considerable money between 1926 and 1931 by taking some of the proceeds in cash or drafts. In the passbook and in defendant's own records only the net transactions, not the total amount of the checks, were recorded. Plaintiff discovered the fraud in 1936 and now sues the receiver five years after the bank closed. Held, that plaintiff, charged with constuctive knowledge of the fraud, which reasonable examination would have revealed, is guilty of negligence and therefore barred from …

Bills And Notes - Accommodation Paper - Defenses Which Can Be Asserted Dy Maker Against One Not A Holder In Due Course, Robert A. Solomon

Michigan Law Review

The defendant, at the request of her husband, signed a blank promissory note. After making the note payable to himself, the husband discounted the note before maturity at the plaintiff bank. In an action by the bank against the wife, the accommodation maker claimed that the bank took in bad faith and that the negotiation to the bank was a diversion from the intended purpose of the accommodation. The plaintiff bank sought to recover upon the ground that the defendant was liable to it as a holder for value irrespective of whether it was a holder in due course. Held …

Banks And Banking - Stockholder's Statutory Liability For Additional Assessment - Statute Of Limitations, Charles F. Dugan

Michigan Law Review

The plaintiff, receiver of the Bank of Saginaw, a Michigan state bank, sought to collect an assessment of one hundred per cent on ninety-six shares of stock of the bank, held by the respondent as trustee for Gardner Grout Rose. On August 31, 1933, the Commissioner of the Michigan State Banking Department, with the approval of the Governor, ordered the then conservator to levy an assessment on stockholders of the bank. On October 31, 1933, the conservator was replaced by a receiver. On September 5, 1934, the Michigan State Banking Commissioner, also with the approval of the Governor, made an …

Bills And Notes - Liability Of Drawer Of Bank Draft - Statute Of Limitations, John P. Cofrin

Michigan Law Review

On April 1, 1918, defendant bank's predecessor issued a draft. The draft was negotiated by the payee to the plaintiff on August 10, 1937; presentment, refusal of payment, protest, notice of protest and dishonor all took place on that day. Defendant suffered no loss by reason of the delayed presentment. In a suit to enforce its liability as drawer, the defendant demurred on the ground that the complaint showed the action was barred by the statute of limitations. Held, the cause of action does not accrue in the sense that word is used in the statute until presentment, dishonor, …

Mortgages-Place Of Recording

Indiana Law Journal

No abstract provided.

Mortgages-Subrogation-Volunteer

Indiana Law Journal

No abstract provided.

Enforceability Of Agreements Between Mortgagors Of The Home Owners' Loan Corporation And Third Parties, Richard F. Payne

West Virginia Law Review

No abstract provided.

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 …

Mortgages - Limitation Of Actions - Deficiency Decree On Basis Of Covenant In Mortgage When Action On Note Barred, Donald M. Swope

Michigan Law Review

Defendant executed and delivered to plaintiff a promissory note and a mortgage securing it. The mortgage contained a covenant to pay $10,000 (the principal amount of the note) "according to the terms of a certain promissory note bearing even date herewith." Upon foreclosure it was held, three judges dissenting, that the mortgagee was entitled to a deficiency decree notwithstanding action on the note was barred by the statute of limitations. Guardian Depositors Corporation of Detroit v. Savage, 287 Mich. 193,283 N. W. 26 (1938).

Banks And Banking - Liability Of Bank For Payment Of Checks With Improper Signatures - Duty Of Depositor To Inspect Monthly Statements, Michigan Law Review

Michigan Law Review

Plaintiff, trustee, a man of banking experience, opened an account with the defendant bank, instructing that only checks signed by him, or by one of his agents, and countersigned by one of two different agents should be honored. Over a period of three years there were numerous departures from the original instructions given to the bank, participated in by the plaintiff as well as by his agents. Two of the agents misappropriated trust funds by cashing checks through defendant bank without the instructed countersignatures, and without knowledge of the plaintiff, but during this period the plaintiff failed to inspect his …

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 …

Bills And Notes - Alteration -Additional Maker As A Material Alteration, John M. Ulman

Michigan Law Review

Defendant A made and delivered the note in question in 1921, payable in two years. In 1931 after the death of the payee, the note was duly assigned to plaintiff. When plaintiff received the note, the signature of defendant B appeared below that of A. The court found that B's signature had been added by someone unknown claiming a benefit under the note after delivery and for the purpose of giving a greater security to the note and that neither defendant authorized or had any knowledge of the addition of B's name. The plaintiff sued both defendants …

Guardian And Ward-De Facto Guardian

Indiana Law Journal

No abstract provided.

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 …

Trusts--Banks And Banking--Special Deposits, W. G. W.

West Virginia Law Review

No abstract provided.

Bills And Notes - Indorser - Language Showing Other Intent, William K. Jackson

Michigan Law Review

Defendants were accommodation parties on a note, signing in the following manner: "For value received we hereby guarantee the payment of the within note at maturity or at any time thereafter with interest at the rate of seven per cent per annum until paid, and agree to pay all cost or expenses paid or incurred in collecting the same, waiving demand of payment, protest and notice of protest." Held, the signers, having written out their contract in some detail, expressed a sufficient intention to be bound as guarantors and not an indorsers, notwithstanding the additional words "waiving demand of …

Bills And Notes - Domiciled Note As A Check - Incidence Of Loss From The Failure Of The Bank Of Domicile After Maturity, Charles H. Haines Jr.

Michigan Law Review

Bonds of D County gave the holder the option of demanding payment at the office of the county treasurer or at a designated New York bank. At maturity, funds were available at the bank for payment, but the holder, P, made no presentment until eighteen days later, five days after the bank had failed, when demand was made on the county treasurer and payment refused. P sued. Held, the holder should recover the face of the bond regardless of the loss through the failure of the bank of domicile. Employers Mutual Insurance Co. v. Board of County Commissioners …

Joint Savings Bank Accounts In Maryland, Alvin Katzenstein

Maryland Law Review

No abstract provided.

The Maturity Of Certificates Of Deposit And Promissory Notes Payable On Demand, Orrin B. Evans

Michigan Law Review

In one form or another a dozen cynics have voiced the sentiment that "speech exists to conceal thoughts." Perhaps because language is too intimately integrated with their livelihood, the lawyers have not generally admitted the assertion. However, in the interpretation of written instruments their brethren on the bench have at times so far disregarded the literal meaning of the words under consideration that one must suspect they secretly approve.

Promissory notes "payable on demand" furnish an illustration. Many cases testify that the true intention of the maker is to create an obligation due immediately and that an action to collect …

Banks And Banking - Trusts - Special Deposits - Agreement Between Depositor And Bank, Robert E. Sipes

Michigan Law Review

During a period of widespread bank failures, plaintiff corporation ceased depositing its funds with the defendant bank. To maintain the public's impression that the plaintiff was a regular customer of the bank, an agreement was entered into by the bank and the plaintiff whereby the bank was appointed "agent" of the plaintiff to collect and remit promptly money due plaintiff. Branch offices of the plaintiff deposited money under this agreement to be transmitted to the plaintiff. When the bank failed with some of this money still in its hands, plaintiff sought to be allowed a preferred claim. Held, the …

Bills And Notes - Effect Of Endorsement "For Deposit'' - Liability Of Later Intermeddlers, Robert Meisenholder

Michigan Law Review

Plaintiff's evidence indicated that as payee of a check she endorsed it "for deposit Lena Soma" and gave it to one Handrulis for safekeeping. On the pretense that the check was his, he gave it to Sarah Alkoff, who endorsed it in blank and deposited it at the Globe bank. The Globe bank in turn sent it through the Federal Reserve Bank for collection to the drawee bank, which paid the check. The amount of the check credited to Sarah Alkoff was paid out by the Globe bank on her checks to Handrulis. The suit for diversion of the check …

Deeds - Covenant Of Warranty Limited By Exceptions In Another Covenant, Seward R. Stroud

Michigan Law Review

A mortgaged land to B and thereafter executed a second mortgage on the same land to C. In the second mortgage, A covenanted that "they are seized of good and perfect title . . . in fee simple and that the title so conveyed is clear, free and unincumbered except . . . (the Hixton Bank mortgage) [mortgage to B] and that they will forever warrant and defend the same . . . against all claims whatsoever." The first mortgage to B was foreclosed, and B purchased at the foreclosure sale. B sold the land to A, …