CONSTITUTIONAL LAW - IMPAIRMENT OF OBLIGATION OF CONTRACTS CHANGE IN STATUTORY REGULATIONS FOR WITHDRAWAL AND PAYMENT OF BUILDING AND LOAN ASSOCIATION MEMBERS

Authors

Abstract

Plaintiff became a member stockholder of the defendant building and loan association under a general Louisiana statute authorizing such corporations. This law provided for withdrawal of members, setting up a fund for payment to be made in order of notice of intent to withdraw. Plaintiff placed his name on the list, but before payment the statute in question was enacted and payment was refused. This statute abolished the liquidation fund and changed the order of withdrawal to a payment of 25 per cent of the claim at the head of the list, the claimant's name to be then placed at the bottom of the list as to the balance. Held, the statute is unconstitutional as depriving the plaintiff of property without due process of law and impairing the obligation of contracts. Treigle v. Acme Homestead Assn., 297 U. S. 189, 56 S. Ct. 408 (1936), rehearing denied 297 U. S. 728, 56 S. Ct. 587 (1936).

Recommended Citation

CONSTITUTIONAL LAW - IMPAIRMENT OF OBLIGATION OF CONTRACTS CHANGE IN STATUTORY REGULATIONS FOR WITHDRAWAL AND PAYMENT OF BUILDING AND LOAN ASSOCIATION MEMBERS, 35 Mich. L. Rev. 135 (1936).
Available at: https://repository.law.umich.edu/mlr/vol35/iss1/12