Law Commons^™

Tort Justice Reform, Paul David Stern

University of Michigan Journal of Law Reform

This Article calls for a comprehensive reform of public tort law with respect to law enforcement conduct. It articulates an effective and equitable remedial regime that reconciles the aspirational goals of public tort law with the practical realities of devising payment and disciplinary procedures that are responsive to tort settlements and judgments. This proposed statutory scheme seeks to deter law enforcement misconduct without disincentivizing prudent officers from performing their duties or overburdening them with extensive litigation. Rather than lamenting the dissolution of Bivens v. Six Unknown Named Agents of Federal Bureau of Narcotics or the insurmountability of qualified immunity, reform …

Products Liability And The Internet Of (Insecure) Things: Should Manufacturers Be Liable For Damage Caused By Hacked Devices?, Alan Butler

University of Michigan Journal of Law Reform

While the application of products liability to insecure software is a frequently-discussed concept in academic literature, many commentators have been skeptical of the viability of such claims for several reasons. First, the economic loss doctrine bars recovery for productivity loss, business disruption, and other common damages caused by software defects. Second, the application of design defects principles to software is difficult given the complexity of the devices and recent tort reform trends that have limited liability. Third, the intervening cause of damage from insecure software is typically a criminal or tortious act by a third party, so principles of causation …

Automating Threat Sharing: How Companies Can Best Ensure Liability Protection When Sharing Cyber Threat Information With Other Companies Or Organizations, Ari Schwartz, Sejal C. Shah, Matthew H. Mackenzie, Sheena Thomas, Tara Sugiyama Potashnik, Bri Law

University of Michigan Journal of Law Reform

This Article takes an in-depth look at the evolution of cybersecurity information sharing legislation, leading to the recent passage of the Cybersecurity Information Sharing Act (CISA) and offers insights into how automated information sharing mechanisms and associated requirements implemented pursuant to CISA can be leveraged to help ensure liability protections when engaging in cyber threat information sharing with and amongst other non-federal government entities.

Resolving The Divided Patent Infringement Dilemma, Nathanial Grow

University of Michigan Journal of Law Reform

This Article considers cases of divided patent infringement: those in which two or more parties collectively perform all the steps of a patented claim, but where no single party acting alone has completed the entire patented invention. Despite the increasing frequency with which such cases appear to be arising, courts have struggled to equitably resolve these lawsuits under the constraints of the existing statutory framework because of the competing policy concerns they present. On the one hand, any standard that holds two or more parties strictly liable whenever their combined actions infringe a patent risks imposing liability on countless seemingly …

The Two Faces Of Janus: The Jurisprudential Past And New Beginning Of Rule 10b-5, John Patrick Clayton

University of Michigan Journal of Law Reform

Section 10(b) of the Securities Exchange Act and its implementing Rule 10b-5 are the primary antifraud provisions for both private and public enforcement of the federal securities laws. Neither the statute nor the rule expressly provides for a private right of action, but federal courts have long recognized such an implied right, and the Securities and Exchange Commission has supported the implied private right of action as a “necessary supplement” to its own efforts. However, after a decade of applying an expansive interpretation to Section 10(b), in the early 1970s the U.S. Supreme Court began to narrowly interpret this implied …

Put The Town On Notice: School District Liability And Lgbt Bullying Notification Laws, Yariv Pierce

University of Michigan Journal of Law Reform

Congress could mitigate the problem of lesbian, gay, bisexual, and transgender (LGBT) student bullying by requiring that teachers and school officials report all bullying incidents to their school district administrators. Many school districts are not aware of the prevalence of LGBT bullying and the extent to which each school protects, or fails to protect, its LGBT students compared to other harassed students. LGBT students often encounter difficulty demonstrating that their school district has a policy or custom of deliberate indifference toward their equal treatment when a school does not equally protect an LGBT student from peer-to-peer bullying because of the …

Fiduciary Duties And Exculpatory Clauses: Clash Of The Titans Or Cozy Bedfellows, Louise Lark Hill

University of Michigan Journal of Law Reform

Centuries ago, when land represented the majority of wealth, the trust was used primarily for holding and transferring real property. As the dominant form of wealth moved away from family land, the trust evolved into a device for managing financial assets. With this transformation came the use of exculpatory clauses by both amateur and professional trustees, providing an avenue for these fiduciaries to escape liability for designated acts. With the use of exculpatory provisions, discussion abounded about whether fiduciary duties were mandatory or subject to modification. The latter view eventually prevailed, with the majority of jurisdictions viewing fiduciary duties as …

Copyright And The Vagueness Doctrine, Bradley E. Abruzzi

University of Michigan Journal of Law Reform

The Constitution's void-for-vagueness doctrine is itself vaguely stated. The doctrine does little to describe at what point vague laws-other than those that are entirely standardless-become unconstitutionally vague. Rather than explore this territory, the Supreme Court has identified three collateral factors that affect its inclination to invalidate a law for vagueness: (1) whether the law burdens the exercise of constitutional rights, (2) whether the law is punitive in nature, and (3) whether the law overlays a defendant-protective scienter requirement. Measured against these factors, copyright law does not meet the vagueness doctrine's minimum requirement of fair notice to the public. Copyright, by …

The Responsible Thing To Do About "Responsible Party" Provisions In Nursing Home Agreements: A Proposal For Change On Three Fronts, Katherine C. Pearson

University of Michigan Journal of Law Reform

Nursing homes routinely seek the signature of a family member on nursing home agreements, calling the signer a "responsible party" or sponsor for the resident. Federal Medicare and Medicaid law provides that participating facilities must "not require a third party guarantee of payment to the facility as a condition of admission ...to, or continued stay, in the facility. "Nonetheless, if federal benefits prove to be unavailable, courts are holding responsible parties contractually liable for thousands of dollars for the care of their elders. This Article proposes private and public responses to the increasing likelihood that nursing homes will seek collection …

After Ellerth: The Tangible Employment Action In Sexual Harassment Analysis, Susan Grover

University of Michigan Journal of Law Reform

In this Article, Professor Grover argues that courts too readily allow employers to avoid vicarious liability for supervisors' unlawful sexual harassment of subordinates. The Article explores the breadth of the affirmative defense first introduced in the Supreme Court's 1998 cases of Faragher v. Boca Raton and Burlington Indus., Inc. v. Ellerth. That defense clears an employer of liability for a supervisor's unlawful sexual harassment if (a) the employer exercised reasonable care to prevent and correct promptly any sexually harassing behavior, and (b) the plaintiff employee unreasonably failed to take advantage of any preventive or corrective opportunities provided by the …

The Role Of "Stories" In Civil Jury Judgments, Reid Hastie

University of Michigan Journal of Law Reform

A brief review of psychological theories of juror decision making is followed by an introduction to "explanation-based" theories of judgment. Prior empirical studies of explanation-based processes in juror decision making are then reviewed. An original empirical study of jurors' judgments concerning liability for punitive damages is presented to illustrate the explanation-based approach to civil decisions.

Establishing New Legal Doctrine In Managed Care: A Model Of Judicial Response To Industrial Change, Peter D. Jacobson, Scott D. Pomfret

University of Michigan Journal of Law Reform

Courts are struggling with how to develop legal doctrine in challenges to the new managed care environment. In this Article, we examine how courts have responded in the past to new industries or radical transformations of existing industries. We analyze two historical antecedents, the emergence of railroads in the nineteenth century and mass production in the twentieth century, to explore how courts might react to the current transformation of the health care industry.

In doing so, we offer a model of how courts confront issues of developing legal doctrine, especially regarding liability, associated with nascent or dramatically transformed industries. Our …

Playing Doctor: Corporate Medical Practice And Medical Malpractice, E. Haavi Morreim

University of Michigan Journal of Law Reform

Although health plans once existed mainly to ensure that patients could pay for care, in recent years managed care organizations (MCOs) have attempted to limit expenditures by exercising significant influence over the kinds and levels of care provided. Some commentators argue that such influence constitutes the practice of medicine, and should subject MCOs to the same medical malpractice torts traditionally brought against physicians. Others hold that MCOs engage only in contract interpretation, and do not literally practice medicine.

This Article begins by arguing that traditional common law doctrines governing corporate practice of medicine do not precisely apply to the current …

Moving Toward A Clearer Definition Of Insider Trading: Why Adoption Of The Possession Standard Protects Investors, Lacey S. Calhoun

University of Michigan Journal of Law Reform

In recent years, insider trading has become a publicized focus of securities law enforcement. The definition of insider trading has emerged slowly through case law, and the term has been clarified by new theories of liability. The use and possession tests are two standards of liability used to judge the treatment of inside information. The use standard offers a defense to insider trading liability while the possession standard premises liability on mere possession of inside information. This Note argues that courts should adopt the possession standard because this standard better protects investors, a primary goal of the Securities Exchange Act …

On Recovery In Tort For Pure Economic Loss, Eileen Silverstein

University of Michigan Journal of Law Reform

Pure economic loss is not considered a recoverable harm in tort law. Professor Silverstein asks, "Why not?"

Liability Of Suppliers Of Natural Raw Materials And The Restatement (Third) Of Torts: Products Liability- A First Step Toward Sound Public Policy, M. Stuart Madden

University of Michigan Journal of Law Reform

From its inception, the law governing liability for damage or injuries caused by defective products has pertained to potential liability for products that have been processed, finished, or fabricated. Naturally occurring raw materials, for the most part, have been considered beyond doctrinal concern, largely because characterizing a merchantable raw material, such as copper or pigiron, as defective is conceptually difficult. Nevertheless, certain doctrines that developed for the application of products liability to other products have gained sporadic application to naturally occurring raw materials, including the sophisticated purchaser defense, the bulk supplier defense, and the ingredient supplier defense. Madden argues that …

"Supervisor" Hostile Environment Sexual Harassment Claims, Liability Insurance, And The Trend Towards Negligence, Amanda D. Smith

University of Michigan Journal of Law Reform

A lack of settled standards for determining liability in supervisor hostile environment sexual harassment lawsuits combined with similar uncertainty in the context of employer liability insurance coverage has resulted in increased litigation in this area. This Note argues that the current predominant standard in the employer liability context, which is based on negligence principle should be rejected in favor of an apparent authority standard, which more appropriately strikes a balance between encouraging employers to identify harassing behaviors and exonerating them from liability when they do so and take appropriate remedial action. It further argues that in order to develop effective …

The New "Pick-Your-Own" Statutes: Delineating Limited Immunity From Tort Liability, Terence J. Centner

University of Michigan Journal of Law Reform

Over the past several years, state legislatures have been asked to provide immunity from liability for members of certain interest groups including providers of horses, risky sport activities, and "pick-your-own" produce. This Article reports on statutory provisions providing tort immunity for producers who allow the public to come onto their property to harvest crops. Provisions allowing profit-making businesses to qualify for tort immunity are not new, but the expansion to cover pick-your-own operators signifies a significant policy change regarding personal liability. The pick-your-own provisions may indicate a policy shift imposing greater responsibility for persons engaging in activities to use care …

Calming Aids Phobia: Legal Implications Of The Low Risk Of Transmitting Hiv In The Health Care Setting, American Bar Association Aids Coordinating Committee

University of Michigan Journal of Law Reform

Scientists are concluding that the risk of becoming infected with the virus that causes AIDS based on transmission from an infected health care worker is infinitesimal: in fact, only one health care worker has ever been documented as the source of HN transmission to a patient. This Article sets forth the medical evidence concerning this low risk and argues that legal decision making should incorporate these facts into its analysis of legal problems involving HN-infected health care workers. The Article analyzes three areas of such legal decision making: (1) employment and related credentialing of HN-infected health care workers; (2) liability …

Comparative Negligence Under The Code: Protecting Negligent Banks Against Negligent Customers, Julianna J. Zekan

University of Michigan Journal of Law Reform

This Article will examine modern banking practices with respect to processing checks and the effect of technology on liability for forged or altered checks. Part I describes the magnetic ink character-recognition system. Part II discusses check truncation. Part III recounts the evolution of contract and tort theories of liability from traditional to modern bank practices. Part IV analyzes the new comparative negligence provisions. Part V investigates the standards of ordinary care. Part VI evaluates the respective duties of the banks and their customers in light of the provisions that reflect the banking industry's transformation from the Paper Age to the …

Market-Share Liability After Hymowitz And Conley: Exploring The Limits Of Judicial Power, Christopher J. Mcguire

University of Michigan Journal of Law Reform

This Note surveys the development of market-share liability and examines the limits on the power of state and federal courts to impose liability on defendants through market-share liability. Part I examines briefly the development of market-share liability in the early 1980s. It then explores how the New York Court of Appeals extended market-share liability in Hymowitz v. Eli Lilly and explores this case's ramifications. Part I also draws on a recent Florida case, Conley v. Boyle Drug Co., for further insight into the problems surrounding market-share liability litigation. Part II argues that jurisdictional limitations, such as standing to sue …

Public Official's Qualified Immunity In Section 1983 Actions Under Harlow V. Fitzgerald And Its Progeny: A Critical Analysis, Stephen J. Shapiro

University of Michigan Journal of Law Reform

Part I of this Article discusses the development of immunities in section 1983 actions. Part II examines the application of Harlow and its progeny to a variety of situations. This discussion shows that broadened qualified immunity produces anomalous results under some circumstances by granting immunity to officials who have acted in a clearly culpable manner. Part III discusses the appropriateness of the Harlow standard and determines that it is neither supported by the legislative history of section 1983 nor by legitimate policy concerns. Finally, Part IV proposes several solutions that would protect deserving public officials from personal damage liability without …

A Proposal To Cap Tort Liability: Avoiding The Pitfalls Of Heightened Rationality, Richard S. Kuhl

University of Michigan Journal of Law Reform

This Note sets forth a model statute that limits high damage awards, yet will withstand the rigors of judicial scrutiny. After presenting a brief background of the medical malpractice crisis in Part I, Part II outlines the standards of equal protection review that the courts are presently using. The Note then focuses on the constitutional challenges to caps on medical malpractice liability in Part III. Part IV discusses the values and interests that were found to be dispositive in the courts' decisions. Finally, after analyzing the criteria that must be met to ensure that a legislative limitation will survive judicial …

Medical Maloccurrence Insurance: A First Party No-Fault Insurance Proposal For Resolving The Medical Malpractice Insurance Controversy, Larry M. Pollack

University of Michigan Journal of Law Reform

Part I of this Note examines the broad, underlying themes of tort theory and argues that, in general, the tort system's primary responsibility should be compensation, rather than deterrence of risk taking. In so far as the production of goods and services causes injury, such losses should be shared and spread as widely and proportionately as possible. Part II discusses the history and nature of the medical malpractice insurance crisis. Part III evaluates the numerous systemic solutions suggested by various commentators. Finally, Part IV proposes a new solution: first party, no-fault medical maloccurrence insurance (MMI).

Limiting Directors' Duty Of Care Liability: An Analysis Of Delaware's Charter Amendment Approach, Craig W. Hammond

University of Michigan Journal of Law Reform

This Note explores the corporate law principles guiding the amendment of section 102(b)(7) and considers what effects this statute will have on the investor-director relationship. The Note focuses on whether this reform measure excessively protects directors at the expense of shareholders.

Part I analyzes the neoclassical economic view of the contractual relationship between stockholders and management that serves as the theoretical justification of section 102(b)(7). Part II proposes a modification of the Delaware statute that would provide for periodic shareholder review of charter amendments limiting liability.

The Liability Of Third Parties Under Title Vii, Andrew O. Schiff

University of Michigan Journal of Law Reform

This Note considers the extent to which Title VII covers discrimination by third parties other than employment agencies and labor organizations. Part I analyzes the rationale for covering third parties, discussing Title VIl's language and the policies that Congress intended it to serve. Part II proposes a framework for analyzing the liability of third parties. Part III applies this framework to three instances where courts have disagreed about the liability of a particular third party: insurance companies' administration of employee benefits, state licensing agencies' licensing of individuals for various occupations, and hospitals' granting of staff privileges to doctors.

Developing A Victims' Suit For Injuries Caused By A Compulsorily Released Prisoner, Leonard M. Niehoff

University of Michigan Journal of Law Reform

This Note advocates the development of a tort remedy for victims injured by a compulsorily released prisoner. This remedy would be based on existing tort theory permitting suits against third parties whose negligence causes or facilitates a criminal act. The victim would bring suit against both the state and third parties who aided in the criminal release determination . To support his claim, the victim would allege: (1) that state officials negligently selected the offending inmate for early release; and (2) that the state negligently maintained the unconstitutional prison conditions which precipitated the release.

Part I of this Note discusses …

Corporate Indemnification Of Directors And Officers: Time For A Reappraisal, K.G. Jan Pillai, Craig Tractenberg

University of Michigan Journal of Law Reform

This Article evaluates the benefits and burdens of shifting litigation risk from management to the enterprise. The Article begins by considering the nature of the legal risks confronting the corporate executive, and the principles of common law that developed to counter those risks. The Article proceeds to assess the two statutory responses to threats of personal liability against the corporate executive: indemnification statutes, and director and officer insurance. Finally, after comparing the effective absolute immunity available to corporate executives with the qualified immunity enjoyed by high-level government officials, the Article concludes that indemnification practices have overinsulated the corporate officer from …

Abolishing The "Extraordinary Nuclear Occurrence" Threshold Of The Price-Anderson Act, Dean R. Tousley

University of Michigan Journal of Law Reform

This article critically examines the extraordinary nuclear occurrence threshold in light of its congressional purpose. Part I surveys the Price-Anderson Act's nuclear liability scheme. Part II focuses on the extraordinary nuclear occurrence threshold, scrutinizing its content and its application to the Three Mile Island accident. Part III discusses the need for reform of the nuclear liability waiver of defenses scheme, concluding that the threshold should be abolished.

A Peek In Pandora's Box: Folding Carton And The Privilege Against Self-Incrimination In Civil Antitrust Actions, David D. Gregg

University of Michigan Journal of Law Reform

The purpose of this article is to examine the dimensions of an individual's Fifth Amendment privilege in a civil antitrust action where the person has not yet been guaranteed that criminal prosecution is no longer possible. Two issues are apparent: first, under what conditions may a civil antitrust defendant properly invoke the privilege; second, if a civil antitrust plaintiff seeks to discover information privileged under the Fifth Amendment, what is the proper response to the problem? Folding Carton provides an excellent example of the process of antitrust litigation and demonstrates the tensions involved. Using that case as an example, the …