Digital Commons Network^™

How Medicare Could Get Better Prices On Prescription Drugs, Kevin Outterson

Faculty Scholarship

Congress may reform drug pricing policies under Medicare Part D as part of a larger health reform effort. Currently, the "noninterference" provision prevents the government from negotiating drug prices on behalf of Medicare Part D prescription drug plans. Commonly considered reform proposals borrow ideas from Medicaid, either through returning dual eligibles to Medicaid drug pricing or by imposing mandatory rebates across the Part D population. We examine a menu of other options, including value-based pricing; expansion of generic and therapeutically equivalent substitution; increased formulary diversity; importation; and limited antitrust waivers. These latter options may reduce federal spending without direct government …

Death From The Public Domain?, Kevin Outterson

Faculty Scholarship

In his recent article in the Texas Law Review, Ben Roin advances the claim that pharmaceutical innovation and the public’s health are harmed by the doctrines of non-obviousness and novelty. He does not mince words, labeling the nonobvious requirement as “perversity” with a “pernicious” effect on drug development. In his view, these standards pose an insurmountable barrier for drug companies seeking to commercialize inventions already in the public domain. He claims that valuable, life-saving drug ideas languish in the public domain because the companies face high barriers to entry from the FDA, but potential free riders are encouraged through the …

The Shrunken Power Of The Purse, Alan L. Feld

Faculty Scholarship

The Constitution places control of the federal government's funds in the hands of Congress. This article examines Congress' exercise of discretion in connection with expenditures, impoundments, debt and taxation. It concludes that its actual control over the government's funds has become limited over time and makes recommendations for more robust exercise of its traditional authority.

Judicial Control Of The National Labor Relations Board's Lawmaking In The Age Of Chevron And Brand X, Michael C. Harper

Faculty Scholarship

This article analyzes and applies to Labor Board decision making the Court’s oft-cited 1984 decision in Chevron U.S.A. v. Natural Resources Defense Council. The article argues that judicial review of Board decision making under Chevron, though limited, can still be sufficiently meaningful to control excessive shifts in Board lawmaking criticized by many commentators. The article explains why recent Supreme Court decisions reject any distinction between two theoretically distinct forms of agency discretionary lawmaking – (1) lawmaking through construction of the direct force of an ambiguous statute: and (2) lawmaking through the elaboration of law beyond that which is embodied in …

Supreme Court Justices, Empathy, And Social Change: A Comment On Lani Guinier's Demosprudence Through Dissent, Linda C. Mcclain

Faculty Scholarship

Justice Souter's imminent retirement from the U.S. Supreme Court provides President Obama with his first opportunity for a judicial nomination to the high court. President Obama's remarks about the relevance of life experience and of empathy are sparking discussion of relevant judicial qualifications. This Essay examines Professor Lani Guinier's recent argument that dissenting justices, particularly through the use of oral dissents, may spur ordinary people to action and that such dissents may expand the range of democratic action, as part of what she and Gerald Torres call "demosprudence." That controversial decisions by the United States Supreme Court can spur dissenting …

Federalization Snowballs: The Need For National Action In Medical Malpractice Reform, Abigail Moncrieff

Faculty Scholarship

Because tort law generally and healthcare regulation specifically are traditional state functions and because medical, legal, and insurance practices are highly localized, legal scholars have long believed that medical malpractice falls within the states' exclusive jurisdiction and sovereignty. Indeed, this view is so widely held that modern legal scholarship takes it for granted. Articles on general federalism issues use medical malpractice as an easy example of a policy in which federal intervention lacks functional justification, and articles that focus on federalization of other tort reforms use medical malpractice as an easy foil, pointing out that the uniformity interest that justifies …

American Moment[S]: When, How, And Why Did Israeli Law Faculties Come To Resemble Elite U.S. Law Schools?, Pnina Lahav

Faculty Scholarship

Following independence in 1948, the Hebrew University of Jerusalem founded a law faculty and modeled it on the European example (Continental and British). Today, the Israeli law faculty is much more similar to the U.S. law school than to institutions of legal education in Europe. This Article traces the history of the changes in Israeli legal education. It argues that the shift began after 1967, faced resistance in the 1980s, and gained momentum in the 1990s. Presently we may be witnessing the beginning of a shift away from U.S. influence and back to Continental Europe or even Asia. The Article …

Remedies, Antitrust Law, And Microsoft: Comment On Shapiro, Keith N. Hylton

Faculty Scholarship

The subject of remedies is a relatively under-theorized area of antitrust law, and Professor Shapiro has done the antitrust community a great favor by offering some innovative and useful theoretical insights on the design of antitrust remedies. He applies his theoretical insights to the Microsoft III case to reach the conclusion that the remedies adopted were inadequate to restore competition in the market for software platforms. In this review, I will offer additional theoretical insights on remedies and explain my reasons for rejecting his conclusions on Microsoft III.

Pharmaceutical Innovation: Law & The Public's Health, Kevin Outterson

Faculty Scholarship

At last count, global pharmaceutical spending exceeded $750 billion. Unlike most medical products and services, many pharmaceuticals are sold at a price that greatly exceeds marginal cost. AIDS medicines that retail for over $10,000 per person per year in the United States can be produced generically at a marginal cost of less than $150. Patents and other related IP rights create these significant gaps between marginal cost and retail price, generating many billions of dollars in profits (patent rents) for companies.

Defining Health Law Or The Edgewood Syndrome, Paula Lobato De Faria, Wendy K. Mariner, George J. Annas

Faculty Scholarship

The authors' main purpose is to present ideas on defining Health Law by highlighting the particularities of the field of Health Law as well as of the teaching of this legal branch, hoping to contribute to the maturity and academic recognition of Health Law, not only as a very rich legal field but also as a powerful social instrument in the fulfillment of fundamental human rights. The authors defend that Health Law has several characteristics that distinguish it from traditional branches of law such as its complexity and multidisciplinary nature. The study of Health Law normally covers issues such as …

Trespass-Copyright Parallels And The Harm-Benefit Distinction, Wendy J. Gordon

Faculty Scholarship

Currently, the elements of a plaintiff’s cause of action for copyright largely follow the tort of trespass to land in that volitional entry (for land) or volitional copying (for copyright) gives rise to liability regardless of proof of harm and without any need for the plaintiff to prove the defendant acted unreasonably. Many scholars have criticized copyright law for following the strict liability model of real property trespass, and have suggested alternatives that would more resemble conditional causes of action such as unfair competition, nuisance, or negligence. In Foreseeability and Copyright Incentives, Professor Shyamkrishna Balganesh argues that copyright plaintiffs …

Analysis Of Videotape Evidence In Police Misconduct Cases, Martin A. Schwartz, Jessica Silbey, Jack Ryan, Gail Donoghue

Faculty Scholarship

Many evidentiary issues arise with respect to the admission of videotape evidence and computer generated simulations at trial, and the authors of this Article address these issues as they arise in police misconduct cases. Professor Schwartz provides insight into and analysis of the evidentiary principles that govern the use of video and computer simulation evidence at trial in cases where police misconduct is at issue. His discussion first addresses the issues that concern the admissibility of videotape evidence, then discusses the role of a videotape on summary judgment, and lastly, analyzes evidentiary issues with respect to computer generated simulations.

A Witness To Justice, Jessica Silbey

Faculty Scholarship

In the 1988 film The Accused, a young woman named Sarah Tobias is gang raped on a pinball machine by three men while a crowded bar watches. The rapists cut a deal with the prosecutor. Sarah's outrage at the deal convinces the assistant district attorney to prosecute members of the crowd that cheered on and encouraged the rape. This film shows how Sarah Tobias, a woman with little means and less experience, intuits that according to the law rape victims are incredible witnesses to their own victimization. The film goes on to critique what the right kind of witness would …

Arbitrator Integrity: The Transient And The Permanent, William W. Park

Faculty Scholarship

The somewhat excessive words attributed to Heraclitus find some application in the current search for ethical standards applicable to. arbitrators sitting in international disputes. New patterns of misbehavior create new types of ethical challenges. Few criteria for evaluating arbitrator independence and impartiality will likely stay foolproof for long, given how ingenious fools often prove themselves to be.

Challenges And Opportunities For New Lawyers, David Nersessian, Maureen A. O'Rourke

Faculty Scholarship

These are challenging times to be a lawyer. They may even be transformational times. Recent upheavals in financial, industrial and real estate markets have many lawyers (and clients) not only cutting back, but also fundamentally re-thinking their business models and the ways in which legal services are provided. Until very recently, hardly a day passed without news of law firm layoffs, deferred start dates, or canceled summer programs. In-house lawyers face substantial budget cuts at the very time their departments must navigate a broader range of legal and organizational challenges. And many government and public interest employers are dealing with …

Cross-Examining Film, Jessica Silbey

Faculty Scholarship

The Supreme Court decision in Scott v. Harris holds that a Georgia police officer did not violate a fleeing suspect's Fourth Amendment rights when he caused the suspect's car to crash. The court's decision relies almost entirely on the filmed version of the high-speed police chase taken from a "dash-cam," a video camera mounted on the dashboard of the pursuing police cruiser. The Supreme Court said that in light of the contrary stories told by the opposing parties to the lawsuit, the only story to be believed was that told by the video. In Scott v. Harris, the court fell …

The Politics Of Law And Film Study: An Introduction To The Symposium On Legal Outsiders In American Film, Jessica Silbey

Faculty Scholarship

The articles collected in this Symposium Issue on Legal Outsiders in American Film are examples of a turn in legal scholarship toward the analysis of culture. The cultural turn in law takes as a premise that law and culture are inextricably intertwined. Common to the project of law and culture is how legal and cultural discourse challenge or sustain communities, identities and relations of power. In this vein, each of the articles in this Symposium Issue look closely at a film or a set of films as cultural objects which, when engaged critically, help us think about law as an …

Leverage In The Board Room: The Unsung Influence Of Private Lenders In Corporate Governance, Frederick Tung

Faculty Scholarship

The influence of banks and other private lenders pervades public companies. From the first day of a lending arrangement, loan covenants and built-in contingency provisions affect managerial decision making. Conventional corporate governance analysis has been slow to notice or account for this lender influence. Corporate governance discourse has traditionally focused only on corporate law arrangements. The few existing accounts of creditors' influence over firm managers emphasize the drastic actions creditors take in extreme cases - when a firm is in serious trouble - but in fact, private lender influence is a routine feature of corporate governance even absent financial distress. …

Intelligent Design And Judicial Minimalism: Further Thoughts On The 'Is It Science?' Question, Jay D. Wexler

Faculty Scholarship

A few years ago, at a conference on religion in the public schools sponsored by the First Amendment Law Review at the University of North Carolina, I argued that although I thought Judge Jones' opinion in Kitzmiller' was mostly correct, the judge erred by deciding that Intelligent Design (ID) is not science. Although I continue to believe that teaching ID in public schools is unconstitutional-I have argued this point for a dozen years and will not reiterate my reasoning here -I also continue to agree with my original assessment of the judge's treatment of the so-called "is it science?" question. …

Book/Tax Conformity And Equity Compensation, David I. Walker, Victor Fleischer

Faculty Scholarship

Should we require companies to report the same amount of income to the IRS as they report to their shareholders? The idea behind "book/tax conformity" is that managers' desire to increase reported earnings would act as a check on their desire to minimize taxable income, and vice versa. Some scholars have proposed a comprehensive approach, adopting financial income as the basis for corporate taxation. Legislators, meanwhile, have offered a targeted approach that singles out equity compensation, which has historically been a significant source of the "gap" between book income and taxable income.

This Article argues that book/tax conformity carries unexplored …

Combating Midnight Regulation, Jack M. Beermann

Faculty Scholarship

The flurry of regulatory activity by the outgoing administration of President George W. Bush has raised, once again, the specter of midnight regulation. Whatever the reason for midnight regulation, there seems to be a general consensus that something has gone wrong when an outgoing administration takes important action while the incoming administration is essentially waiting to take over. Most late term action is subject to the obvious question of "if this action was so important, why didn't the administration take it in the last seven and three-quarters years or so?" Even though the Constitution leaves the incumbent in office for …

The End Of Reparations Talk: Reparations In An Obama World, Kevin Outterson

Faculty Scholarship

Disparities in Black health began in slavery, were reinforced in segregation and racism, and persist today despite significant remedial efforts. In the last decade, the statistics about Black health disparities show no improvement. The caustic history of slavery, racism and segregation hasn't been completely undone. Fundamental changes are still necessary to repair deficits in Black health.

But the election of Barack Obama has changed the relevance of reparations as a political tool for making these changes. We elected a Black man as President, and he refused to apply reparations talk to social programs of uplift for disadvantaged communities. Obama struck …

The Non-Option: Understanding The Dearth Of Discounted Employee Stock Options, David I. Walker

Faculty Scholarship

Contemporaneous grants of both stock and at-the-money options to individual employees of U.S. public companies indicates demand for equity compensation packages that are in the money, i.e., packages of equity pay instruments that in aggregate have payoff profiles and incentive properties that are similar to explicit in-the-money employee stock options. However, several tax rules (and formerly accounting rules) strongly discourage grants of explicit in-the-money options, including recently enacted IRC - 409A, which essentially precludes the use of explicitly discounted options by taxing these instruments at vesting, rather than at exercise, and adding a 20% penalty tax. This article explores whether …

The Turn Toward Congress In Administrative Law, Jack M. Beermann

Faculty Scholarship

Congress engages in an extensive and ever-increasing level of oversight of the activities of the Executive Branch. The level of observation and supervision is high enough that it is appropriate to hold Congress responsible for a very high proportion of the activities of the Executive Branch. In recent years, so much attention has been paid to assertions of power by the President and the Supreme Court, Congress has been somewhat neglected. This paper analyzes the power of Congress mainly through an administrative law lens with the aim of pointing out ways in which Congress has remained or become responsible for …

Tort Duties Of Landowners: A Positive Theory, Keith N. Hylton

Faculty Scholarship

One of the most controversial areas of modern tort law is that of the duty of landowners toward people who visit their land. The common law divided land visitors into three types: invitees, licensees, and trespassers. The highest duty of care was owed to the invitee and the lowest to the trespasser. The distinctions led courts to hand down harsh decisions and to draw formal lines between the categories that seemed to defy common sense at times. This paper explains the incentive-based function of the classical landowner duties. I will argue that the classical duties served useful regulatory functions. The …

Consumer Scams And The Elderly: Preserving Independence Through Shifting Default Rules, Nathalie Martin

Faculty Scholarship

Modern technology has made it easier than ever for scammers, legitimate businesses with dubious intentions, and even charities to take advantage of telemarketing. For reasons including reduced mental faculties and loneliness, the elderly are increasingly at risk for losing money, credit, and ultimately independence to those who would exploit them. In this Article, Professor Martin explores the benefits of existing regulations, bankruptcy, and reverse mortgages as solutions to these problems. Professor Martin also recommends a new default rule for elderly consumers: no solicitations unless the consumer opts in.

Listening To Indigenous Voices: What The Un Declaration On The Rights Of Indigenous Peoples Means For U.S. Tribes, Aliza Organick

Faculty Scholarship

Part I of this article will provide a historical context for the Declaration by surveying the international recognition of the concept of "Indigenous" rights that led to the adoption of the Declaration. Part II will discuss the positions taken by each no-vote state and the reasoning employed by these states in support of those positions. Part Ill will focus on how U.S. Tribes might turn the Declaration into a living document in spite of the United States' continued resistance to do so.

Tribal Law And Best Practices In Legal Education: Creating A New Path For The Study Of Tribal Law, Aliza Organick

Faculty Scholarship

In Part I of this article, I explore the importance of introducing law students to tribal law and the culture of other local legal systems early and often. I assert that when the legal academy ignores the role that culture plays in the formation and understanding of our own legal system and the legal systems of other communities, we are ignoring the most basic and core aspects of society. By disregarding the role culture plays in legal systems, we are doing a disservice not only to our students, but also ultimately to the legal community and our clients. By failing …

The Evolving Architecture Of North American Integration, Laura Spitz

Faculty Scholarship

Given its potential significance for democracy, sovereignty, government, governance, and justice in each of Canada, the United States, and Mexico, North American integration qua integration has thus far received surprisingly little attention from legal scholars and social scientists. While an expanding body of research explores the dynamics of continental integration in other contexts (especially Europe) and/or examines the meaning of globalization, regionalism, and multilateral internationalism in a general sense, the specific constitution of an integrated North American space remains largely undertheorized. This Article aims to advance the literature in this area by examining legal discourse as an example of the …

It Depends, Gary S. Lawson

Faculty Scholarship

Peter Strauss stated at the outset of this Symposium that the participants were chosen in part for the likelihood that they would generate “intelligent disagreement.” By that standard, I may have been a poor choice--and if that is the case, I will leave it to the reader to determine whether it is a function of the first or second term in the quoted phrase. At first glance, it looks as though I sharply disagree with Rick Pildes and Harold Bruff about whether the PCAOB's members are principal officers who must be appointed by the President with the advice and consent …