Law Commons^™

Tort As Private Administration, Nathaniel Donahue, John Fabian Witt

Cornell Law Review

What does tort law do? This Article develops an account of the law of torts for the age of settlement. A century ago, leading torts jurists proposed that tort doctrine's main function was to allocate authority between judge and jury. In the era of the disappearing trial, we propose that tort law's hidden function is to shape the process by which private parties settle. In particular, core doctrines in tort help to structure and sustain the systems of private administration by which injury claims are actually resolved. Though an observer could hardly guess it from judge-centric theories of tort or …

Volume 105, Number 4 Table Of Contents

Cornell Law Review

No abstract provided.

Executive Privilege - With A Catch: How A Crime-Fraud Exception To Executive Privilege Would Facilitate Congressional Oversight Of Executive Branch Malfeasance In Accordance With The Constitution's Separation Of Powers, Anthony W. Wassef

Cornell Law Review

A crime-fraud exception to assertions of executive privilege in response to congressional subpoenas would help level the playing field between the two branches in those moments when Congress is most needed to serve as a check and balance on the executive branch. A crime-fraud exception would signal to executive branch officials that executive privilege will not conceal their malfeasance; would counteract hyperpartisanship as a force that insulates executive branch officials from the consequences of their actions; and would rein in the expansive reach of protective assertions of executive privilege. For years, Congress has surrendered power to the executive branch. A …

The Corporate Privacy Proxy, Shaakirrah R. Sanders

Cornell Law Review

This Article contributes to the First Amendment corporate privacy debate by identifying the relevance of agriculture security legislation, or ag-gag laws. Ag-gag laws restrict methods used to gather and disseminate information about commercial food cultivation, production, and distribution-potentially creating a "right" to control or privatize nonproprietary information about animal and agribusinesses. Yet, corporate privacy rights are unrecognized as a matter of U.S. constitutional law, which implicates the sufficiency of the justification for ag-gag laws. This Article ponders whether "security" acts as a proxy for an unrecognized right to corporate privacy in the ag-gag context. Part I of this Article surveys …

The Paradoxical Impact Of Scalia's Campaign Against Legislative History, Stuart Minor Benjamin, Kristen M. Renberg

Cornell Law Review

Beginning in 1985, Judge and then Justice Antonin Scalia advocated forcefully against the use of legislative history in statutory interpretation. Justice Scalia's position, in line with his textualism, was that legislative history was irrelevant and judges should avoid invoking it. Reactions to his attacks among Justices and prominent circuit judges had an ideological quality, with greater support from ideological conservatives. In this Article, we consider the role that political party and timing ofjudicial nomination played in circuit judges' use of legislative history. Specifically, we hypothesize that Republican circuit judges were more likely to respond to the attacks on legislative history …

Closing The Racial Gap In Financial Services: Balancing Algorithmic Opportunity With Legal Limitation, Julia F. Hollreise

Cornell Law Review

Algorithmic credit assessment models wear two faces: one operating to perpetuate centuries of racial stratification and otherization in the United States' capitalist system, and one standing poised to correct such injustice by smoking out both inherent human biases and the remnants of past discrimination that are embedded in the system. Although the United States has undertaken efforts to equalize Black Americans' access to opportunities in education, employment, and other critical benefits, no modern and sustained effort has been made to ensure that the Black community is extended credit on sufficient and equal terms, without the effects of prior inequities continuing …

An Essay On The Quieting Of Products Liability Law, Aaron D. Twerskii

Cornell Law Review

For several decades, courts and commentators have disagreed as to whether the standard for liability in product design defect cases should be based on risk-utility tradeoffs or disappointed consumer expectations. Although a strong majority opt for risk-utility a significant minority of courts adopt the consumer expectations test. This Essay contends that as a practical matter in jurisdictions that allow for recovery in design defect cases on a consumer expectations theory, plaintiffs introduce a reasonable alternative design as the predicate for recovery. In fifteen of the seventeen states that allow recovery based on consumer expectations the author could not find a …

Are Publicly Traded Corporations Disappearing?, Margaret M. Blair

Cornell Law Review

Corporate law scholars and economists have expressed concern recently about the fact that the number of publicly traded corporations in the United States has declined significantly since a peak in the late 1990s. In this Essay, in honor of the late Professor Lynn Stout, who devoted much of her career to the study of large publicly traded corporations, I show that despite a decline in the number of such corporations in the last two decades, they collectively account for about the same share of total economic activity as they have for the last six decades. While there has been turnover …

Corporate Law And The Myth Of Efficient Market Control, William W. Bratton, Simone M. Sepe

Cornell Law Review

In recent times, there has been an unprecedented shift in power from managers to shareholders, a shift that realizes the long-held theoretical aspiration of market control of the corporation. This Article subjects the market control paradigm to comprehensive economic examination and finds it wanting.

The market control paradigm relies on a narrow economic model that focuses on one problem only: management agency costs. With the rise of shareholder power, we need a wider lens that also takes in market prices, investor incentives, and information asymmetries. General equilibrium (GE) theory provides that lens. Several lessons follow from reference to this higher-order …

Cryptocommunity Currencies, J. S. Nelson

Cornell Law Review

What are cryptocurrencies: securities, commodities, or something else? Maybe they are a new form of established currency-a non-sovereign fiat currency. Like other self-governing bodies, the communities that issue cryptocurrencies should be judged on how well they support their currencies. This analysis is not meaningfully different from how we have evaluated traditional sovereign issuers of currency. Indeed, as traditional-sovereign-issued currency becomes entirely digital, functional distinctions between traditionally sovereign-backed flat currency and widely accepted non-sovereign fat currency start to disappear. The primary way then to distinguish the value of such currencies from each other becomes the quality of their institutional backing. Through …

Introduction, Saule T. Omarova, Diogo Magalhaes

Cornell Law Review

No abstract provided.

Defined Contribution Plans And The Challenge Of Financial Illiteracy, Jill E. Fisch, Annamaria Lusardi, Andrea Hasler

Cornell Law Review

Retirement investing in the United States has changed dramatically. The classic defined benefit (DB) plan has largely been replaced by the defined contribution (DC) plan. With the latter, individual employees' decisions about how much to save for retirement and how to invest those savings determine the benefits available upon retirement.

We analyze data from the 2015 National Financial Capability Study to show that people whose only exposure to investment decisions is by virtue of their participation in an employer-sponsored 401(k) plan are poorly equipped to make sound investment decisions. Specifcally, they suffer from higher levels of financial illiteracy than other …

Volume 105, Number 3 Table Of Contents And Front Matter

Cornell Law Review

No abstract provided.

Artificial Agents In Corporate Boardrooms, Sergio Alberto Gramitto Ricci

Cornell Law Review

Thousands of years ago, Roman businessmen often ran joint businesses through commonly owned, highly intelligent slaves. Roman slaves did not have full legal capacity and were considered property of their co-owners. Now business corporations are looking to delegate decision-making to uber-intelligent machines through the use of artificial intelligence in boardrooms. Artificial intelligence in boardrooms could assist, integrate, or even replace human directors. However, the concept of using artificial intelligence in boardrooms is largely unexplored and raises several issues. This Article sheds light on legal and policy challenges concerning artificial agents in boardrooms. The arguments revolve around two fundamental questions: (1) …

Remutualization, Erik F. Gerding

Cornell Law Review

This Article explores how returning to common law or traditional approaches to financial institution governance can inform and improve a range of financial reforms. In particular, this Article seeks to revive the use of organizational form as a tool of financial regulation. Very old varietals, including partnerships and mutual companies, decanted in new bottles can promote financial stability, lower incentives for excessive risk-taking by financial intermediaries, provide mechanisms to police their market conduct, and better align their incentives with the interests of their customers and consumers.

A Democratic Political Economy For The First Amendment, Nelson Tebbe

Cornell Law Review

In this Article, I begin building an interpretation of the First Amendment that promotes the practical conditions for a vital democracy. I argue that considerations of distributive justice do properly affect interpretation of free speech and religious liberty. This is true even assuming that those provisions have priority over ordinary law, including economic regulation.

Domesticating Comity: Territorial U.S. Discovery In Violation Of Foreign Privacy Laws, Corby F. Burger

Cornell Law Review

The European Union's (EU) recently enacted General Data Protection Regulation (GDPR) is being billed as "the most important change in data privacy regulation in 20 years." The GDPR sets forth a stringent set of binding regulations that govern how data controllers and processors manage the private electronic data of EU citizens. In an audacious effort to ensure comprehensive privacy protection for EU citizens in a globally connected digital landscape, EU regulators have made the GDPR apply extraterritorially. The regulation extends beyond the borders of the European Union, reaching any entity that stores or processes the personal data of EU citizens …

Volume 105, Number 2 Table Of Contents And Front Matter

Cornell Law Review

No abstract provided.

Queer Eyes Don't Sympathize: An Empirical Investigation Of Lgb Identity And Judicial Decision Making, Jared Ham, Chan Tov Mcnarrara

Cornell Law Review

Do Lesbian, gay, and bisexual judicial decision makers differ from their heterosexual counterparts? Over the past decade much has been said about queer judges, with many suggesting that they cannot be impartial in cases involving LGBTQ+ parties or religious interests. To investigate these questions, this Note presents the findings of the first empirical analysis of the decision making of lesbian, gay, and bisexual judges in the United States.

Examining employment-discrimination litigation, this Note finds no evidence that a judge's sexual orientation affects the outcome of the cases they decide on the merits. Specifically, looking to one year of data from …

The Six-Month List And The Unintended Consequences Of Judicial Accountibility, Miguel F. P. De Figueiredo, Alexandra D. Lahav, Peter Siegelman

Cornell Law Review

A little-known mechanism instituted to improve judicial accountability and speed up the work of the federal judiciary has led to unintended consequences, many of them unfortunate. Federal district court judges are subject to a soft deadline known as the Six-Month List (the List). By law, every judge's backlog (cases older than three years and motions pending more than six months) is made public twice a year. Because judges have life tenure and fixed salaries, a mere reporting requirement should not influence their behavior. But it does. Using the complete record of all federal civil cases between 1980 and 2017 and …

The New Migration Law: Migrants, Refugees, And Citizens In An Anxious Age, Hiroshi Motomura

Cornell Law Review

Once every generation or so, entire fields of law require a full reset. We need to step back from the fray and rethink basic premises, ask new questions, and even recast the role of law itself. This moment has come for the law governing migration. Seasoned observers of immigration and refugee law have developed answers to core questions that emerged a generation ago. But now these observers often talk past each other, and their answers often fail to engage coherently with the daunting challenges posed by migration in this anxious age.

To try to do better, I undertake four inquiries. …

You Might Be A Robot, Bryan Casey, Mark A. Lemley

Cornell Law Review

As robots and artificial intelligence (Al) increase their influence over society, policymakers are increasingly regulating them. But to regulate these technologies, we first need to know what they are. And here we come to a problem. No one has been able to offer a decent definition of robots arid AI-not even experts. What's more, technological advances make it harder and harder each day to tell people from robots and robots from "dumb" machines. We have already seen disastrous legal definitions written with one target in mind inadvertently affecting others. In fact, if you are reading this you are (probably) not …

A Computational Analysis Of Constitutional Polarization, David E. Pozen, Eric L. Talley, Julian Nyarko

Cornell Law Review

This Article is the first to use computational methods to investigate the ideological and partisan structure of constitutional discourse outside the courts. We apply a range of machine- learning and text-analysis techniques to a newly available data set comprising all remarks made on the U.S. House and Senate floors from 1873 to 2016, as well as a collection of more recent newspaper editorials. Among other findings, we demonstrate (1) that constitutional discourse has grown increasingly polarized over the past four decades; (2) that polarization has grown faster in constitutional discourse than in nonconstitutlonal discourse; (3) that conservative-leaning speakers have driven …

The Audiences Of Statutes, David S. Louk

Cornell Law Review

Although a maxim of statutory drafting is to identify the relevant audience and draft so that the audience can "get the message," conventional theories of statutory interpretation often overlook important considerations about how statutes communicate and delegate to a diverse range of intended audiences. Statutes exist to change the conduct and behavior of many kinds of intended audiences, including administrative agencies, state and local governments, law enforcement officers, corporations, interest groups, lawyers, and laypeople. Influenced by lessons from the philosophies of law and language, this Article contends that Judicial statutory interpretation serves an important yet underappreciated role in providing a …

Volume 105, Number 1 Table Of Contents And Front Matter

Cornell Law Review

No abstract provided.

Affordable Renewables - Unjust And Unreasonable?, Grace Brosofsky

Cornell Law Review

The Federal Energy Regulatory Commission (FERC)-an independent agency tasked with ensuring 'just and reasonable" energy rates-has begun to use energy market payment systems to prop up fossil fuels. FERC has issued orders that prevent renewables from competing with fossil fuels by forcing renewables to bid into energy markets at artificially high rates. FERC has argued that state clean energy subsidies distort energy markets by "suppressing prices" and pushing "needed" fossil fuel generators out of the market. According to FERC, a federal intervention is necessary to protect "market integrity" and ensure that consumers can access reliable electricity.

This Note argues that …

Virtual Briefing At The Supreme Court, Jeffrey L. Fisher, Allison Orr Larsen

Cornell Law Review

The open secret of Supreme Court advocacy in a digital era is that there is a new way to argue to the Justices. Today's Supreme Court arguments are developed online: they are dissected and explored in blog posts, fleshed out in popular podcasts, and analyzed and re-analyzed by experts who do not represent the parties or have even filed a brief in the case at all. This "virtual briefing" (as we call it) is intended to influence the Justices and their law clerks but exists completely outside of traditional briefing rules. This article describes virtual briefing and makes a case …

Extending United States V. Mendoza: Why Defensive Nonmutual Issue Preclusion Is Unavailable Against The Federal Government, Jake E. Goodman

Cornell Law Review

Imagine a situation where the U.S. Securities and Exchange Commission (SEC) is Looking to enforce the antifraud provision of the Securities Exchange Act of 1934 against two different companies, arising out of the same transaction. Now suppose the SEC sues Company A ftrst. However, the court finds no violation based on the factual determinations of the transaction and renders a judgment refusing to impose liability against Company A. Unsatisfied, the SEC decides to sue Company B under the same provision. Company B, however, believes the factual issues were already litigated and determined against Company A and wants to preclude relitigation …

Oversight Failure In Securities Markets, Yesha Yadav

Cornell Law Review

According to statute, securities exchanges play an essential role in ensuring compliance with applicable laws and industry standards. Long imagined as unique in their institutional capacity to bring traders together, collect information and exclude problem participants from the marketplace, exchanges have offered an efficient source of private discipline for public regulators. The classic conception of the exchange, however, no longer holds true in today's markets. Rather than concentrate activity within a handful of exchanges, equity markets are fragmented across a network of thirteen exchanges and around forty lightly regulated, off-exchange alternative venues (colloquially, "dark pools"). This Article shows that the …

Does The Clear And Present Danger Test Survive Cost-Benefit Analysis?, Cass R. Sunstein

Cornell Law Review

Under American regulatory law, the dominant contemporary test involves cost-benefit analysis. The benefits of regulation must justify the costs; if they do, regulation is permissible and even mandatory. Under American free speech law, in sharp contrast, an important contemporary test for the regulation of speech involves "clear and present danger." In general, officials cannot censor or regulate political speech on the ground that the benefits of regulation justify the costs. They may proceed only if the speech is likely to produce imminent lawless action. In principle, it is not simple to explain why the free speech test does not involve …