Monthly Archives: March 2018
Joanna C. Schwartz’s 2016 article, The Cost of Suing Business, comes out of the Clifford Symposium on Tort Law and Social Policy at DePaul University College of Law—an annual gathering now in its twenty-fourth year that, under Professor Stephan Landsman’s singular stewardship, has been the site of so much valuable inquiry.
In the article, Schwartz questions a narrative that has succeeded in both Congress and the Court: that “class actions are the most significant scourge on business ever conjured up by man.” (P. 655.) In her words:
In brief after brief to the U.S. Supreme Court, the Chamber of Commerce and other business amici tell the same story: Meritless class actions, filed by rapacious plaintiffs’ attorneys for the ostensible benefit of consumers, employees, and shareholders, are so devastatingly expensive to defend against, and threaten such financial devastation if plaintiffs prevail, that corporate defendants cannot help but accept “blackmail settlements” that harm both businesses’ bottom lines and society at large.
It’s certainly familiar. And it’s undeniably arresting. But is it true? Continue reading "Measuring Common Claims About Class Actions"
Danaya C. Wright & Beth Sterner, Honoring Probable Intent in Intestacy: An Empirical Assessment of the Default Rules and the Modern Family, 43 ACTEC L.J. 341 (2017).
The principal goal of any intestacy statute is to determine the probable intent of individuals who die without a will. Presumably, that means determining what most people who die without a will would want their wills to say if they were to have executed a will before dying. This is a particularly challenging endeavor, given that intent changes over time and may not be consistently the same throughout a large, multicultural country.
In their excellent article, Professor Wright and Ms. Sterner analyze 493 wills that were probated in Escambia and Alachua Counties, Florida, in 2013. They do this, the authors say, “[i]n light of the fact that marriage is a waning institution and a majority of children are currently being raised in nontraditional families—defined as blended, single-parent, or same-sex.” Continue reading "Using Empirical Studies as a Basis for Updating Intestacy Laws"
Zachary Liscow and Quentin Karpilow, Innovation Snowballing and Climate Law
, 95 Wash. U. L. Rev.
385 (2017), available at SSRN
Innovation is a critical component of environmental progress. The dramatic reductions in emissions per-mile-travelled from automobiles over the past forty years stem from major breakthroughs like the catalytic converter. Our efforts to switch from fossil-fuel-based energy and reduce greenhouse gas emissions will depend on many different kinds of technological innovation. The dramatic price drops in both wind and solar energy, for instance, are in significant part the result of the development of new technologies.
How can environmental law facilitate the development of new technology to address the challenges of climate change and other environmental problems? The predominant position of economists has been that legal tools that force economic actors to address the full costs of their actions, including the externalities that are the basis of many environmental problems, is the appropriate approach to spur innovation. A carbon tax (or a tradable permit system which requires polluters to purchase their permits) will create incentives for firms and individuals to come up with new technologies that will reduce environmental problems. Liscow and Karpilow’s article challenges this dominant paradigm, drawing on recent significant economics research. Continue reading "Encouraging Technological Innovation in Environmental and Energy Law"
For over thirty years, every President has issued or maintained executive orders that require agencies to prepare highly formal benefit-cost analyses (BCAs) for significant rules and to submit these BCAs to the Office of Information and Regulatory Affairs (OIRA) for review. For just as long a time, administrative law scholars have been fighting about the merits of both formal BCAs and centralized review. Over time, the locus of this debate has shifted from whether to conduct BCA as part of rulemaking to how to conduct it. The Supreme Court contributed to this shift a couple of years ago in Michigan v. EPA, when all nine justices agreed that reasonable rulemaking requires an agency to give some form of consideration to costs and ensure that they do not wildly outweigh benefits.
The debate over how to conduct BCA, in turn, centers on the problem of monetization. Although President Trump’s issuance of E.O. 13,771 has in many respects dramatically altered White House controls on agency rulemaking, the key executive order governing this process, E.O. 12,866, remains in place. It instructs agencies to monetize costs and benefits “to the extent feasible” as they prepare BCAs as part of their regulatory impact analyses (RIAs). This requirement can put agencies in the difficult position of placing monetary values on nonmarket goods such as preventing a parent from backing a vehicle over a young child. Notwithstanding such difficulties, some scholars contend that to ensure socially optimal rules, agencies should increase their commitment to monetization—even an educated guess on a dollar value, properly explained, is better than giving up on quantification. Continue reading "Just How Big an Envelope Will You be Needing for that Benefit-Cost Analysis?"
Ronen Avraham & William Hubbard, Procedural Flexibility in Three Dimensions (Unpublished draft, 2018).
A burgeoning procedural literature explores the power of parties to alter the procedural entitlements of the civil-justice system by means of contractual agreement and the limits of that power. The most dramatic example of such bargaining is the agreement to arbitrate, although bargaining also can occur within the context of a civil lawsuit. As Ronen Avraham and William Hubbard argue in a fascinating new paper, this literature has focused almost exclusively on a single question: which procedures are subject to contractual negotiation and which are not? No one believes that the parties can by contract agree to let the judge flip a coin to determine the winner, but most scholars believe that parties can contract for fewer depositions or requests for production. The debate has centered on distinguishing “core” procedural rights that are not subject to negotiation from non-“core” rights that can be bargained away.
While largely accepting that distinction, Avraham and Hubbard challenge extant efforts to establish the limits of procedural flexibility by means of this “core” metric. They make two critical points. First, the distinction between the core that is non-negotiable and the non-core procedural rights subject to horse-trading is slippery at best. There is widespread agreement that core rights are those whose alteration through party negotiation might impair the interests of third parties, might impose additional burdens on the court, or might impinge on reasoned judicial decision-making. The parties’ inability to contract for a coin flip by the judge falls within this last category. But the sacrifice of non-core rights (say, bargaining away the right to take depositions) can affect the information on which the judge’s decision is based and thus deflate the quality and accuracy of judicial decision-making. Even assuming that lines can be drawn, the authors demonstrate that many “core” rights, which should in theory apply uniformly in all cases, are subject to great variability and flexibility in practice, with different judges (and sometimes even the same judge) adopting different procedures in different cases to reason their way to the result.
The second criticism — and the paper’s critical insight — is the all-or-nothing nature of the distinction. Continue reading "“And the Deposition Goes to the Gentleman in the Blue Pinstripe Suit”"
Laura Underkuffler’s recent article, Property, Sovereignty, and the Public Trust, is part of a special issue of Theoretical Inquiries in Law. The collection as a whole is an important read for anyone interested in the relationships between individual property rights claims and the role and remit of the state in the “private property” sphere. The twelve articles collected in the special issue offer insightful and wide-ranging contributions to these important debates and, both individually and collectively, will hold much interest for Property section readers.
Underkuffler’s contribution examines the theoretical basis for what she describes as the ubiquitous assumption in liberal democratic systems that government should forbear from interference with existing individual property entitlements. Her starting point is the sovereign’s duty to respond to the needs of all members of its community, and from this position she describes the concept of forbearance as “an inherently troublesome proposition.” (P. 330.)
In the course of the article, she examines the core arguments of conventional theories of government forbearance from interference with existing individual property entitlements—for example, for protecting individual reliance interests, or for public policy reasons like encouraging investment or enhancing social stability, or through the tautology that the idea of property itself determines the requirement of government forbearance.
Yet, Underkuffler concludes that each of these arguments offers insufficient reasons, on its own terms, to adequately explain the “forbearance phenomenon.” She offers an alternative lens through which government forbearance can be explained, rooted in the “fiduciary relationship” between a government and its citizens. Fiduciary theory offers an interesting frame for thinking about the structured, institutional, hierarchical power dynamics of relationships between the state and its citizens, and offers a fresh concept for giving content to the state’s responsibilities towards property owners. Continue reading "Beyond the State-Owner Binary: Repositioning the State’s Property-Resource Responsibilities with Respect to All Community Members (Including Property Owners)"
In Hitler’s American Model, James Q. Whitman explores Nazi Germany’s focus on American law, taking on the conventional view that Germany found little of interest in the United States. (P. 4.) Whitman demonstrates otherwise, arguing that even though the Germans rejected racial segregation as it was practiced in the American South, they undertook a “sustained” examination of other aspects of American race law, including restrictions on immigration based on national origin, prohibitions against interracial marriage, and rules that fostered “de jure and de facto second-class citizenship for blacks, Filipinos, Chinese, and others.” (P. 5.)
Rooting his argument in a fascinating array of sources, Whitman demonstrates that Nazi lawyers became particularly interested in American immigration restrictions. They focused on a series of quotas enacted in the 1920s that limited immigration based on the ethnic groups that were already in the United States, an approach that favored northern Europeans from England, Scandinavia, and Germany – all groups that the Nazis loosely classified as “racially related” and the truest expression of the American “volk.” (P. 54.) That America had a “volk” might be news to some, but this is why Whitman’s study is so interesting. It suggests strongly, and persuasively, that America’s commitment to white supremacy eclipsed – or rather subsumed – its other projected ideals abroad, including for example its commitment to democracy, a value that Woodrow Wilson had trumpeted loudly during World War I. “That the Americans have begun to think about the maintenance of race purity,” wrote Nazi legal expert Martin Staemmler in 1935, “can be seen in their immigration laws, which completely forbid the immigration of yellows, and place immigration from the individual European countries under sharp supervision, here principally admitting members of the decidedly Nordic peoples (English, German, Scandinavian states).” (P. 55-56.) Continue reading "Heil Jim Crow?"
Professor Whitman – without doubt a leader in the field of comparative law – manifestly wishes he hadn’t learned what he’s learned:
Awful as it may be to contemplate, but the reality is that the Nazis took a sustained, significant, and sometimes even eager interest in the American example in race law. … In fact, … it was the most radical Nazis who pushed most energetically for the exploitation of American models. Nazi references to American law were neither few nor fleeting…. Nor, importantly, was it only, or even primarily, the Jim Crow South that attracted Nazi lawyers. … Their America was not just the South, it was a racist America writ much larger. (Pp. 4-5.) Continue reading "Alabama Song? Lotte Lenya? No. Adolph Hitler!"
This is a shaggy dog jot. It starts in the conventional way by identifying a recent piece of work that is recommended for the attention of the reader. However, in the course of justifying that recommendation there is a series of diversions to other works, which distracts from any sustained understanding of where exactly the virtue of the piece is to be found. But, like a shaggy dog story which finally reveals its point, there does eventually emerge a point to the recommendation; although, as with the simile, not the point that might have been anticipated.
The work cited is a response by Gerald Postema to critics in a symposium on the volume covering common-law legal philosophy in the twentieth century he has contributed to Springer’s multi-volume Treatise of Legal Philosophy and General Jurisprudence. Within his coverage of that subject matter, Postema cites an article as a resource for unpacking the notion of true philosophy (vera philosophia) which he then utilizes in his own assessment of the achievements of common-law legal philosophy. This article by Donald Kelley in the 1976 Journal of the History of Philosophy, has not, as far as I am aware, received much attention in mainstream Jurisprudence; and I have failed to uncover any real enthusiasm for it within more exclusive, niche jurisprudential concerns. It is, nevertheless, central to our present concerns. Continue reading "A Story of Jurisprudence and True Philosophy"
Reviewing Iris M. Barsan, Legal Challenges of Initial Coin Offerings (ICO)
, 3 Revue Trimestrielle de Droit Financier (RTDF)
(2017), available at SSRN
Cryptocurrencies and Initial Coin Offerings (ICOs) present an extreme challenge to law organized by national boundaries. Legal Challenges of Initial Coin Offerings by Iris M. Barsan—a modestly titled (for US standards) and concise article—provides a comparative account of the regulation of cryptocurrencies. Fundamental questions are at stake: What are cryptocurrencies? Are they money? Securities? Something completely new? One of the article’s strengths is its recognition that we should care deeply about who gets to provide the answer. The article contributes to a growing literature about a hot topic by being explicit about the jurisdictional and choice-of-law issues inherent in transactions carried out in what the author describes as “completely virtual spaces without any territorial or geographic boundary.”
What are cryptocurrencies? Existing categories are of limited help. Cryptocurrencies have characteristics of money or securities, so regulation could borrow from these areas, but their structure varies and they do not fall cleanly into one category or the other. Barsan contests the characterization of cryptocurrency as a legally unidentified object (objet juridique non identifié). Instead the author suggests that we should think of it as having multiple identifications based on the characteristics of the particular cryptocurrency, especially currency-like or security-like tokens. Continue reading "Cryptocurrencies, Le Bitcoin, and Regulatory Reach"
Elizabeth Y. McCuskey, Agency Imprimatur & Health Reform Preemption
, 78 Ohio St. L.J.
1099 (2017), available at SSRN
With the future of health law and policy shifting on a nearly daily basis, producing clear and stable health law scholarship has become a daunting task, risking leaving the field adrift during a period of vexing uncertainty. Evocatively handling this challenge, one piece of esteemed scholarship that has boldly filled a gap—and, I would submit, one of the best articles of health law scholarship over the last year—is Agency Imprimatur & Health Reform Preemption by Elizabeth Y. McCuskey. The article was a pleasure to read and review for this Jot.
No matter the future of specific features of the Affordable Care Act (ACA)—as many truly hang in the balance—McCuskey’s piece takes on a core principle and likely enduring feature of health care reform: the federal statute’s waiver mechanism. Her piece places the ACA’s “big” state innovation waiver (housed in Section 1332 of the Act) in the larger context of murky preemption doctrine and highlights its ultimate impact on judicial review, substantive policy expertise, and communicative federalism. McCuskey’s masterful treatment of a complicated topic is valuable not only given the instability in federal health reform, but given the fact that the ACA’s state-empowering waiver process is likely to only increase in importance and focus under the Trump administration. In short, her topic is likely to become only more significant, and her analysis more indispensable. Continue reading "Preeminent Work on Health Reform and Preemption"