Laches

For more than 30 years, thousands of Negroes, dressed in purple silks, gold brocade, fancy headdress, strutted as members of the Ancient Egyptian Order of Nobles of the Mystic Shrine. That their name and regalia were quite similar to that of the White Shriners,* bothered them not at all, until White Shriners charged imitation, brought suit against them. Four Texas Courts decided against the Negroes. They became worried. But, last week, Negro Shriners puffed out their chests, secure in the knowledge that their parading would never be stopped. For the U. S. Supreme Court held that White Shriners had been guilty of "laches," decided in favor of the Negroes.

As every learned attorney knows, the Statute of Limitations prevents persons from suing for money, for land reclamation, etc., etc., after lapse of a certain number of years (the number differing in various states). "Laches," which may be a defense where the Statute does not apply, means "undue delay in asserting a right, or in claiming or asking for a privilege." In deciding for the Negro Shriners, the venerable justices pointed out that the White Shriners had been guilty of "long and obvious lapses." While Negro Shriners strutted, rejoiced over their victory, White Shriners were also rejoicing--for other reasons. They had just completed a week of convening in Los Angeles. It was their fifty-fifth annual convention; approximately 100,000 White Shriners had gathered together to make speeches, shake hands, see sights, enjoy Los Angeles hospitality, after a religious ceremony in Hollywood Bowl.

Again, Laches

In 1913, two men. Robert T. Neely, Orville A. Dickinson, opened an orange-juice stand in Manhattan. Each paid in $200. Next year, they opened four more stands, increased the capital stock. But thirsty people did not take kindly to street-corner orangeade. Business lagged. In 1915, Stockholder Dickinson, practically insolvent, transferred his share of stock for a debt cancellation to one Walter L. Titus, through Titus's brother. New-Stockholder Titus, little interested in the money-losing company, "wholly abandoned the enterprise," refused to contribute much-needed additional funds. Soon a new company, Burnee Corp., was formed--consisting of Stockholder Neely and Willard S. Burrows.

The name of the stores was. and still is, "Nedick's"--taken from the first syllables of the names of their original founders. Under the new company, business prospered. Fame came to Nedick's Orangeade. Bankers, brokers, bakers, brakemen, drank freely of it on hot summer days. . . .

In 1927, when gross annual earnings had reached the sum of $10,000,000. Mr. Titus brought suit against Burnee Corp. His claim: That transfer of stock to the new company in 1915 was made without his consent and in violation of his rights. His demand: That he be given an accounting of and a share in the profits. The decision: New York Supreme Court Justice Peter A. Hatting held that Plaintiff Titus could not share in the millions he had refused to help build up. Justice Hatting pointed out that Plaintiff Titus knew of the transfer of stock rights to the Burnee Corp., did not investigate, did nothing. Although not actually expressed, the doctrine of "laches" (see p. 58) again was implied as being an adequate defense.

Italy v. State of N. Y.

Legal and statistical minds, still buzzing last week with the staggering War-debt settlement figures of $8,806,000,000, were presented with another claim involving governments. That claim was for $900.

In 1925, Italian Laborer Antonio Comincio died in New York City. During 42 years in the U. S. he had saved up $900 but had not become a U. S. citizen. He left no heirs, no will. Under U. S. law, e tates of all persons dying under such conditions become the property of the State in which they die.

Last week, Italy's Fascist Government, through counsel for Magno Santovincenzo, Acting Italian Consul in New York City, entered a claim in surrogate's court for the Comincio savings. Their reason: under Italian law. all estates of Italian citizens who die intestate without heirs, no matter where they had lived, revert to Italy's King upon their death.

* Ancient Arabic Order, Nobles of the Mystic Shrine.