Constitutional Law Commons^™

Constitutional Law - Agricultural Adjustment Act - Validity Of Milk Licenses Under Section 8 (3)

Michigan Law Review

Pursuant to the authorization of Section 8 (3) of the Agricultural Adjustment Act, the Secretary of Agriculture issued a blanket license in the Baltimore Sales Area whereby the distributors of fluid milk or its products in the current of interstate or foreign commerce were subjected to detailed regulation of production and purchase and resale prices. The plaintiff dairy company, handling milk produced and consumed exclusively within the state, sought an in junction against the enforcement of the license. Held, in granting a final decree, that the plaintiff's activities were not in the current of and that they did not …

Constitutional Law - Power Of Congress To Punish For Contempt - Power To Punish For Completed Acts

Michigan Law Review

Petitioner was attorney for certain air lines and during the course of the "Air Mail" contracts investigation in the Senate in 1934 was ordered to produce certain correspondence. He delayed, claiming an attorney's privileges, and either he or his partner allowed clients to remove certain of the papers asked for from his files. Some of the papers were later returned by the clients, and others were destroyed. Petitioner was committed for contempt of the Senate and brought habeas corpus proceedings. Held, (1) neither the fact that an obstruction of legislative process has been removed or that its removal has …

Constitutional Law-Service Of Process-Jurisdiction Over Non-Resident Acquired By Service Upon Resident Agent, Maurice S. Culp

Michigan Law Review

Henry L. Doherty, a non-resident of the State of Iowa, did business within the state under the name of Henry L. Doherty & Co., with a district manager in charge of the office at Des Moines. Under the manager were clerks and salesmen engaged in the business of selling securities. One of these salesmen made an illegal sale to Goodman, and for damages resulting from the transaction Goodman brought suit in 1931, serving in the regular manner in accordance with the provisions of section 11079 of the Iowa Code the district agent at the Des Moines office. Doherty appeared specially …

Taxation - Constitutionality Of Chain Store Taxation

Michigan Law Review

The plaintiff corporation filed a bill asking a permanent injunction against the enforcement of the Michigan chain store tax, which imposes a graduated levy, the amounts increasing from ten dollars per year per store for two stores owned, to two hundred fifty dollars per year per store for stores in "chains" of twenty-six or more. The plaintiff contended that the statute was unconstitutional under the "uniformity" clause of the state constitution and the equal protection of the laws clause of the federal Constitution. Held, the act is constitutional. C. F. Smith Co. v. Fitzgerald, 270 Mich. 659, 259 …

Practice And Procedure-Seventh Amendment-Power Of Federal Court To Increase Inadequate Verdict

Michigan Law Review

A jury in a federal court awarded the plaintiff $500 in a personal injury action; he moved for a new trial on the ground of inadequate damages. Having obtained consent of defendant to entry of judgment for $1500, the trial judge denied the motion. Plaintiff appealed. Held, this procedure was a violation of the Seventh Amendment of the Constitution; a new trial must be granted. Dimick v. Schiedt, (U. S. 1935) 55 Sup. Ct. 296.

Rights In Land - Lateral Support - Statute Increasing Common Law Rights And Duties - Constitutionality

Michigan Law Review

Plaintiff sued for damages to his building which collapsed during excavating operations on defendant's adjoining land. A Michigan statute makes it the duty of land owners excavating to a depth of 12 feet or more below grade level to furnish sufficient lateral support to protect adjacent land and structures thereon from injury "due to the removed material in its natural state, or due to the disturbance of other existing conditions caused by such excavation," and imposes liability for injuries due to failure to comply with the act. The excavation on defendant's land, reaching a depth of 14 feet below grade …

Taxation-State Taxes Upon Federal Instrumentalities-Who May Raise Question Of Unconstitutionality

Michigan Law Review

In connection with the performance of a contract with the federal government, the plaintiff corporation was required to pay a state sales tax on lumber, cement, steel and other materials used in the construction work. An action was brought to enjoin the collection of the tax and to have it declared unconstitutional as impeding and hampering the federal government in the performance of its governmental functions, and as depriving the plaintiff of its property without due process of law. Held, the plaintiff is not a proper party to raise the question of the constitutionality of the tax: first, because …

The Gold Clause Decisions, John P. Dawson

Michigan Law Review

The gold clause decisions of February 18, 1935, have already taken their place among the great landmarks of American constitutional history. They have given a partial answer to some basic questions of constitutional law. Directly they have disposed of claims amounting to a total of many billions of dollars. But their further implications, both for public and private law, are of even greater magnitude; it may be many years before these wider implications are more fully understood.

Constitutional Law-Validity Of State Anti-Injunction Legislation

Michigan Law Review

The development of organized labor in the United States has created difficult legal and social problems with which the courts and the legislatures are required to deal. The courts were the first to deal with these problems and, rightly or wrongly, attempted to apply to them the existing rules of law. For instance, the rules of property law have been applied. Where organized labor interfered with the carrying of the mail, it was said that the federal government had a property right in the mails. Where the carrying on of a business was interfered with, it was held that the …

Statutes- Constitutional Law - Legislative Action At Special Session Limited By Governor's Message

Michigan Law Review

At a special session called by the executive to consider, among other matters, a bill "providing for the validation of bonds issued by a municipality under sufficient popular vote regardless of technical requirements," the legislature enacted a statute permitting validation of bonds even when issued without legal power, and the bill was approved by the governor. Pursuant to the statute, the common council of Detroit, in order to refund the city's bonded debt, approved the validity of the old obligations of the municipality, and petitioned for a writ of mandamus to compel the city controller to issue the refunding bonds …

The Delegation Of Federal Legislative Power To Executive Officials, Theodore W. Cousens

Michigan Law Review

It will be the purpose of this article to attempt (1) a chronological survey of the previous Supreme Court cases relating to alleged delegations of legislative power, and (2) an analysis and discussion of the Panama Refining Co. decision in the light of this background. No discrimination is made between delegations of state and of federal legislative power, as the Supreme Court makes no such discrimination.

Taxation-Constitutional Limitations On Sales Taxes

Michigan Law Review

There are twenty-three states having general sales tax statutes today. For the most part these statutes have been prompted by the recent economic depression as emergency measures. Most of them are license or privilege taxes, and are of two classes: those of the first type are sales taxes in name only, and consist of taxes upon the privilege of engaging in various occupations, of which selling personal property is but one; those of the second type are taxes solely upon the privilege of selling personal property at retail. Such taxes have met with considerable opposition in the form of litigation, …

Creation Of Government Corporations By The National Government, Maurice S. Culp

Michigan Law Review

The federal government has until recently made very little use of the corporation as an agency for executing the laws of Congress. Early in the course of our national development the federal government chartered banks and shared in their ownership, utilizing them in the fiscal operations of the treasury. At various other times the federal government has chartered other corporations under some power granted by the Constitution, particularly railroad corporations under the commerce power. Beginning with the World War the corporate form of administrative agency was utilized to avoid difficulties which would arise if the execution of the war-time activities …

Constitutional Law -Validity Of State Recovery Acts Adopting Federal Codes, Paul G. Kauper

Michigan Law Review

Among the interesting problems raised by the enactment of state recovery legislation is the problem growing out of the attempted adoption by the states of the codes of fair competition formulated under the authority of the National Industrial Recovery Act. The validity of such state legislation may be questioned in light of the familiar doctrine of non-delegability of legislative power - a doctrine that has been written into the constitutions of both the federal and state governments by judicial determination. Before considering the application of this doctrine to the problem at hand, it will be well to refer to two …

Constitutional Law - Home Owners Loan Corporation Act - Penalties Clause

Michigan Law Review

An indictment under the penalties clause of the Home Owners Loan Corporation Act, brought before the promulgation of authorization of charges for services rendered, was dismissed on the ground that, prior to such authorization, the act was not sufficiently definite to satisfy the Sixth Amendment to the Constitution of the United States. United States v. Willard, (D. C. W.D.Mich.No.4057, September 27, 1934) 2 U.S.LAW WEEK, index p. 99.

Constitutional Law - New Deal Legislation - Gold Hoarding Statute

Michigan Law Review

Two cases involving acts of Congress passed in March 1933 to prevent the hoarding of gold' were denied a review by the United States Supreme Court on October 8. Both of these cases involved the same facts. Plaintiff had delivered certain gold bars to a bank for safe-keeping. Later the bank notified him that, pursuant to an executive order by the President of the United States, it would have to surrender the gold. Immediately the plaintiff demanded the return of the bullion, which demand was refused, and he filed bills for specific performance of the bailment contract against the bank …

Practice And Procedure - Seventh Amendment- Power Of Federal Court To Increase Inadequate Verdict

Michigan Law Review

A jury in a federal court awarded the plaintiff $500 for injuries received in an automobile accident. The plaintiff thereupon moved for a new trial on the · ground of inadequate damages. The trial judge, having obtained the consent of the defendant to entry of judgment for $1,500, denied the motion. Plaintiff appealed. Held, (Morton, C. J., dissenting) such procedure operates as a violation of the Seventh Amendment, and the only course open to a federal court in a case where damages are inadequate is to grant a new trial. Schiedt v. Dimick, (C. C. A. ·1st, 1934) …

Constitutional Law-Validity Of Statute Exempting Insurance Benefits From Process For Debts

Michigan Law Review

C, a judgment creditor of W, instituted garnishment proceedings to recover the amount of the judgment out of moneys owed by the X insurance company to W as beneficiary of H's life insurance. Subsequently the Arkansas legislature passed a statute exempting all moneys paid or payable to any resident of the State as the insured or beneficiary designated under any life, sickness, or accident insurance policy, from liability or seizure under judicial process, and provided that such benefits should not be subjected to the payment of any debt. Held, by a unanimous decision of the United …

Constitutional Law - Power To Enact Federal Securities Act Of 1933

Michigan Law Review

The scope and implications of the Securities Act of 1933 have been set out in a recent issue of this Review. Broadly, the Act regulates the issue and sale of securities by requiring registration thereof with the Federal Trade Commission, by specifying certain data to be included in prospectuses relating to such securities, and by imposing sanctions in the form of penal and civil liabilities. The Act purports to be an exercise of the Congressional power "to regulate . . . commerce among the several states" and "to establish post offices and post roads." Various constitutional questions are involved but …

Constitutional Law-Price-Fixing - Changing Attitudes

Michigan Law Review

The urgent need for rebuilding and readjusting our economic system has forced the various governments to devise methods by which to achieve those ends. The legislative enactments resulting from the efforts to bring about a "recovery" are destined to be challenged on the due process ground. The public is keenly concerned not alone in the practicality of the methods selected, but in their constitutionality as well. The recent case of Nebbia v. People is not only of interest to the lawyer; it was accepted as "good copy" in leading lay publications. The Supreme Court affirmed the conviction of one Nebbia, …

Federal Practice- Declaratory Judgments

Michigan Law Review

Alabama, for the purpose of invoking original jurisdiction, applied to the Supreme Court of the United States for leave to file a complaint in equity against nineteen States to have statutes regulating and prohibiting the sale of goods manufactured by convict labor declared void because in violation of the commerce clause of the federal Constitution. Later, Alabama was allowed to submit an amendment eliminating fourteen States. Held, leave to file bill as amended denied. State of Alabama v. State of Arizona, et al., (U. S. 1934) 1 U. S. LAW WEEK (Feb. 6, 1934), index p. 468.

Constitutional Law - Due Process - Fishing Rights In The Public Waters Of Michigan

Michigan Law Review

The Ne-Bo-Shone Association, Inc., is an Ohio corporation which owns property on both banks of the Pine River for some distance. Following the decision of the Michigan Supreme Court in Collins V. Gerhardt that the stream is navigable and public, the complainant association was ordered to remove obstructions in the stream which hampered the free use of the stream by the public for fishing purposes. Thereupon complainant sought an in junction against certain public officials from taking action to remove these obstructions, claiming that it has the right to exclude the public from this portion of the Pine River, and …

Criminal Law And Procedure - Repeal Of Statute - Eighteenth Amendment

Michigan Law Review

Defendants Chambers and Gibson were indicted on June 5, 1933, for conspiracy to violate the National Prohibition Act, and for possessing and transporting liquor in violation of the Act. Chambers pleaded guilty, and the case was continued to the December term. The case was called for trial as to Gibson on December 6, 1933. Chambers filed a plea in abatement, and Gibson demurred to the indictment. Held, the repeal of the Eighteenth Amendment, by the adoption of the Twenty-first, proclaimed December 5, 1933, barred further prosecution. United States v. Chambers and Gibson, (U.S. Sup. Ct. 1934) 1 U.S. …

Constitutional Law - Moratory Legislation

Michigan Law Review

A Minnesota statute, in view of the economic emergency, provided, among other things, that courts might, upon petition of a mortgagor, extend the period of redemption from mortgage foreclosure sales for a definite time not beyond May 1, 1935. If a court took such action, the mortgagor was to remain in possession of the premises and pay a reasonable rental to the mortgagee. Held, by the United States Supreme Court in a five-to-four decision, that this statute did not violate the contracts, or due process, or equal protection clauses of the Constitution. Home Building and Loan Association v. Blaisdell …

Constitutional Law-Right To Competition

Michigan Law Review

The appellee was engaged in the business of selling natural gas. A rival utility entered the field duplicating the plant and facilities of the appellee and established with the consent of the Public Service Commission a rate lower than the prevailing rate charged by the appellee. In an attempt to retain its customers against the lower prices of its competitor the appellee lowered its rate several times. The appellants finally ordered the appellee to submit evidence as to the reasonableness of its rates. Upon investigation the Public Service Commission found that the business in the territory was capable of supporting …

Constitutional Law - Federal Control Over Crime - Scope Of Power To Regulate Crime Under The Commerce Clause

Michigan Law Review

The increase of criminal activities interstate in scope, and the growing dissatisfaction with state enforcement of local laws, have focused attention of late upon the power of Congress to regulate crime under the commerce clause of the Constitution. Outstanding among proposals for congressional legislation are the following: making interstate felonies federal offenses; punishing criminals who flee across state lines after committing a crime; and restricting the sale and transportation of firearms. Most, if not all, of this suggested legislation must rest on the commerce clause for its validity. We purpose here to discuss the nature and scope of this power, …

Constitutional Law - Emergency Banking Act - Delegation Of Power

Michigan Law Review

Defendant was indicted in two counts: (1) for failure to file a return in respect to gold bullion held by him, and (2) for holding over $200,- 000 in gold bullion without a license, in violation of the Presidential Order of August 28, 1933, issued by authority of the Emergency Banking Act of March 9, 1933. This Act declared an emergency to exist, by Title I, sec. 2 amended the Trading with the Enemy Act by authorizing the President "during time of war or during any other period of national emergency declared" by him to regulate or prohibit (inter …

Constitutional Law - Force And Effect Of Clauses Providing For Payment Of Private Indebtedness In Gold

Michigan Law Review

Certain Belgium company bonds were issued providing for payment of interest "in sterling in gold coin of the United Kingdom of or equal to the weight and fineness existing on September 1, 1928." After England had left the gold: standard the issuing company sought to make interest payments in depreciated pounds. Plaintiff bondholder sought to enforce payment of sufficient depreciated currency to enable him to purchase on the day of payment gold in the same quantity as he would have received had payment been due September 1, 1928. The English House of Lords held for plaintiff, reversing the decision of …

Process In Actions Against Non-Resident Motorists, Maurice S. Culp

Michigan Law Review

Personal service on the defendant within the jurisdiction of a State is the conventional form of process in personal actions. But considerations of convenience and public need have resulted in recognizing an additional form of process in personal actions against nonresident motorists. Statutes in 35 States authorize the commencement of suit against the non-resident motorist by substituted service on a public official of the State where the cause of action arises; the official is made for this purpose the agent or attorney of the non-resident motorist.

It is proposed herein to discuss (1) the constitutional basis of such legislation, and …

Constitutional Law - Interstate Commerce - Motor Carrier Operating Within - Single State As A Link In Interstate Transportation, Paul G. Kauper

Michigan Law Review

The plaintiff was engaged in business as a common carrier of goods by motor vehicle. He transported goods between the docks of Los Angeles harbor and points in and around Los Angeles, but all the goods which he carried were originally shipped in from or were consigned to destinations outside the State. His operations, however, were independent of the operations of connecting carriers. The California Railroad Commission ordered the plaintiff to cease operations until he secured a certificate of public convenience and necessity. Held, on review, that the plaintiff was engaged in interstate commerce, and that the Commission's order …