Law Commons^™

Agreement In Principle: A Compromise For Activist Shareholders From The Uk Stewardship Code, David W. Roberts

Vanderbilt Journal of Transnational Law

Equity ownership in the United States and Europe is now highly concentrated in the hands of institutional investors, which gives rise to new problems of agency and corporate governance. These large investment intermediaries, such as mutual funds, specialize in maximizing beneficial owner value based on short-term performance benchmarks but lack the expertise and incentive to actively engage corporate boards on business strategy and governance matters. Instead, institutional investors are "rationally reticent," meaning that they are willing to respond to governance proposals but not to propose them. Activist shareholders may offer an endogenous solution to address "latent activism" in institutional intermediaries …

Purposivism In The Executive Branch: How Agencies Interpret Statutes, Kevin M. Stack

Vanderbilt Law School Faculty Publications

After decades of debate, the lines of distinction between textualism and purposivism have been carefully drawn with respect to the judicial task of statutory interpretation. Far less attention has been devoted to the question of how executive branch officials approach statutory interpretation. While scholars have contrasted agencies interpretive practices from those of courts, they have not yet developed a theory of agency statutory interpretation. This Article develops a purposivist theory of agency statutory interpretation on the ground that regulatory statutes oblige agencies to implement the statutes they administer in that manner. Regulatory statutes not only grant powers but also impose …

Agency Coordination In Shared Regulatory Space, Jim Rossi, Jody Freeman

Vanderbilt Law School Faculty Publications

This Article argues that inter-agency coordination is one of the great challenges of modern governance. It explains why lawmakers frequently assign overlapping and fragmented delegations that require agencies to "share regulatory space," why these delegations are so pervasive and stubborn, and why consolidating or eliminating agency functions will not solve the problems they create. The Article describes a variety of tools that Congress, the President and the agencies can use to manage coordination challenges effectively, including agency interaction requirements, formal inter-agency agreements, and joint policymaking. The Article assesses the relative costs and benefits of these coordination tools, using the normative …

Agency Independence After Pcaob, Kevin M. Stack

Vanderbilt Law School Faculty Publications

Separation of powers has a new endeavor. The PCAOB decision makes the validity of good-cause removal protections depend on the separation of adjudicative from policymaking and enforcement functions within the agency. At a minimum, within independent agencies, it preserves the second layer of removal protection only for dedicated adjudicators. But its logic extends further. In PCAOB, the demand for political supervision over rulemaking and enforcement trumped Congress's choice to preserve the independence of officials who perform those roles and also adjudicate. In that way, PCAOB reversed the consistent constitutional validation of good-cause removal protections for those who engage in adjudication. …

The Future Of Agency Independence, Lisa S. Bressman, Robert B. Thompson

Vanderbilt Law Review

Independent agencies have long been viewed as different from executive-branch agencies because the President lacks authority to fire their leaders for political reasons, such as failure to follow administration policy. In this Article, we identify mechanisms that make independent agencies increasingly responsive to presidential preferences. We find these mechanisms in a context where independent agencies traditionally have dominated: financial policy. In legislative proposals for securing market stability, we point to statutorily mandated collaboration on policy between the Federal Reserve Board and the Secretary of the Treasury. In administration practices for improving securities regulation, we focus on White House coordination of, …

Obama's Equivocal Defense Of Agency Independence, Kevin M. Stack

Vanderbilt Law School Faculty Publications

You can't judge a President by his view of Article II. At the very least, only looking to a President's construction of Article II gives a misleading portrait of the actual legal authority recent Presidents have asserted.

President Obama is no exception, as revealed by his defense of the constitutionality of an independent agency from challenge under Article II in Free Enterprise Fund v. Public Company Accounting Oversight Board' (PCAOB) in the Supreme Court this term. The PCAOB is an independent agency, located inside the Securities Exchange Commission (SEC), created to regulate accounting of public companies in the wake of …

Reclaiming The Legal Fiction Of Congressional Delegation, Lisa Schultz Bressman

Vanderbilt Law School Faculty Publications

The framework for judicial review of agency statutory interpretations is based on a legal fiction – namely, that Congress intends to delegate interpretive authority to agencies. Critics argue that the fiction is false because Congress is unlikely to think about the delegation of interpretive authority at all, or in the way that the Court imagines. They also contend that the fiction is fraudulent because the Court does actually care about whether Congress intends to delegate interpretive authority in any particular instance, but applies a presumption triggered by statutory ambiguity or a particularized analysis involving factors unrelated to congressional delegation. In …

Agency Statutory Interpretation And Policymaking Form, Kevin M. Stack

Vanderbilt Law School Faculty Publications

In this short symposium contribution, I take up this invitation to examine the relevance of the agency's policymaking form to its approach to statutory interpretation. The core point I wish to advance is a relatively basic one--namely, that an agency's approach to statutory interpretation is in part a function of the policymaking form through which it acts. My strategy is to examine two of the most important policymaking forms--notice-and-comment rulemaking and formal adjudication--and to argue that the considerations that distinguish agency and judicial interpretation have a markedly different place in these two agency policymaking forms. For purposes of exposition, I …

Judicial Deference And The Credibility Of Agency Commitments, Jonathan Masur

Vanderbilt Law Review

Consider the following situation: In late 2004, towards the end of President George W. Bush's first term, the National Highway Transportation Safety Administration ("NHTSA"), pursuant to its congressionally delegated authority, promulgates a rule that would relax inspection and testing regimes for automobile manufacturers- thereby saving those firms substantial amounts of money-if the manufacturers independently deployed cutting-edge vehicle safety technology. The research and development of this technology will require significant up-front expenditures, and automobile manufacturers must decide whether to invest the funds necessary to bring the technology to market. However, the cost-benefit analysis is not so straightforward. The predicament, as the …

The Constitutional Foundations Of Chenery, Kevin M. Stack

Vanderbilt Law School Faculty Publications

The Supreme Court regularly upholds federal legislation on grounds other than those stated by Congress. Likewise, an appellate court may affirm a lower court judgment even if the lower court's opinion expressed the wrong reasons for it. Not so in the case of judicial review of administrative agencies. The established rule, formulated in SEC v. Chenery Corp., is that a reviewing court may uphold an agency's action only on the grounds upon which the agency relied when it acted. This Article argues that something more than distrust of agency lawyers is at work in Chenery. By making the validity of …

How "Mead" Has Muddled Judicial Review Of Agency Action, Lisa S. Bressman

Vanderbilt Law Review

When the Supreme Court decided United States v. Mead Corp. four years ago, Justice Scalia predicted that judicial review of agency action would devolve into chaos. This Article puts that prediction to the test by examining the court of appeals decisions applying the decision. Justice Scalia actually understated the effect of Mead. This Article suggests a remedy for the mess.

In Mead, the Court held that an agency is entitled to deference under Chevron, U.S.A., Inc. v. NRDC only if Congress has delegated to that agency the authority to issue interpretations that carry the force of law, and the agency …

Rejecting The Myth Of Popular Sovereignty And Applying An Agency Model To Direct Democracy, Glen Staszewski

Vanderbilt Law Review

The use of direct democracy is at its highest level in more than one hundred years.' The direct initiative, which is the primary focus of this Article, allows private citizens to bypass the traditional legislative process and make binding laws, often in highly contentious areas of public policy. The 2000 elections, for example, placed directly before voters the issues of school vouchers, physician-assisted suicide, same- sex marriage and other gay and lesbian rights, gun control, campaign finance reform, bilingual education, gambling, medical use of marijuana, and sentencing for drug offenders, as well as some of the perennial favorites-tax reform and …

Respecting Deference: Conceptualizing Skidmore Within The Architecture Of Chevron, Jim Rossi

Vanderbilt Law School Faculty Publications

This Article addresses critically the implications of the U.S. Supreme Court's recent decision in Christensen v. Harris County, 120 S.Ct. 1655 (2000), for standards of judicial review of agency interpretations of law. Christensen is a notable case in the administrative law area because it purports to clarify application of the deference doctrine first articulated in Skidmore v. Swift & Co., 323 U.S. 134 (1944). By reviving this doctrine, the case narrows application of the predominant approach to deference articulated in Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984), thus reducing the level of deference in …

Monitoring Governmental Disposition Of Assets: Fashioning Regulatory Substitutes For Market Controls, Harold J. Krent, Nicholas S. Zeppos

Vanderbilt Law Review

Each year, the government sells and leases public assets worth billions of dollars. FCC auctions to allocate rights to electromagnetic spectrum generated over twenty billion dollars within a three-year period, and proceeds from mineral leases, timber sales, and disposition of real estate from defaulting thrifts have surpassed several billion dollars annually.

From the taxpayer's perspective, however, government sales and leases have been deplorable. The government has donated valuable resources to preferred claimants, allocated scarce broadcast and oil rights resources by lottery, and sold both public land and mineral rights to private parties at a fraction of the market price. Although …

Alj Final Orders On Appeal: Balancing Independence With Accountability, Jim Rossi

Vanderbilt Law School Faculty Publications

This essay addresses how ALJ final order authority in many state systems of administrative governance (among them Florida, Louisiana, Missouri, and South Carolina) poses a tension between independence and accountability. It is argued that political accountability is sacrificed where reviewing courts defer to ALJ final orders on issues of law and policy. Standards of review provide state courts with a way of restoring the balance between independence and accountability, but reviewing courts should heighten the deference they give to the agency's legal and policy positions -- giving little or no deference to the ALJ on these issues -- even where …

Judicial Review Of Agency Deregulation: Alternatives And Problems For The Courts, James T. O'Reilly

Vanderbilt Law Review

This Article takes a preliminary look at how deregulation has fared in the courts and at the significance of the evolving federal appellate and United States Supreme Court case law for future agency rule making decisions.

Part II of this Article examines the various categories of regulation and the aspects of each category that may be subject to deregulation.

Part III defines deregulation and explores some of the reasons why an agency may wish to deregulate. Part IV examines the utility of judicial oversight of deregulation, and part V then discusses the mechanics of deregulation, focusing on the various means …

Agencies In Conflict: Overlapping Agencies And The Legitimacy Of The Administrative Process, Louis J. Sirico Jr.

Vanderbilt Law Review

This Article demonstrates how multi-agency decision making can enhance the legitimacy of the administrative system. After discussing the meaning of legitimacy in a highly stable society, it analyzes multi-agency decision making process from the perspective of the political scientist. I particularly emphasize "partisan mutual adjustment" analysis, which views the system as adjusting continually to the conduct of interacting participants. This theory comports not only with the pluralistic, pressure politics model of American government, but also with the methodology of classical economics, which celebrates the product of competing, conflicting interests.The Article concludes by demonstrating that the multi-agency process can increase legitimacy …

Foreign Nationals And Agencies Of Foreign Governments As Persons Under The Freedom Of Information Act: A Question Of Constitutionality, Lloyd F. Leroy

Vanderbilt Journal of Transnational Law

This note will first examine the FOIA as it is juxtaposed against the President's power in the area of foreign affairs. Particular attention in this area will be directed to the expressed congressional purpose for passage of the FOLA and the President's role as sole voice of the nation in international relations. Next, the conflicting interests will be highlighted by means of a hypothetical fact situation in which the FOIA dictates disclosure of information which the President feels must be withheld because of foreign policy considerations. Finally, this note will propose some solutions to both the practical problems presented and …

Annual Survey Of Tennessee Law, John S. Beasley, Ii

Vanderbilt Law Review

The Union Carbide and Ferguson cases were suits to recover Tennessee sales taxes and use taxes paid under protest for 1956 and 1958. Carbide and Ferguson urged that since they were under contract to the Atomic Energy Commission, the legal incidence of the tax was on the United States directly and therefore invalid. Carbide had been secured in 1943 to manage and operate certain plants involved in work on the atomic bomb, and Ferguson had subsequently been engaged to build additional facilities for this purpose. Both contended that their relationship with the United States and the Atomic Energy Commission was …

Agency -- 1962 Tennessee Survey, Edwin R. Render

Vanderbilt Law Review

Two cases decided during the survey period dealt with the existence or nonexistence of the agency relationship. While the agency relationship frequently arises out of contract, a contract is not necessary to the creation of authority in the agent. Consent of the principal is the basis of the agent's authority. Generally, the existence or non-existence of the agency relationship is a question of fact for the jury; but in the two cases to be discussed, Tennessee appellate courts reversed jury verdicts on the ground that there was no competent evidence in the record to support their findings... The other two …

Agency -- 1961 Tennessee Survey (Ii), W. Harold Bigham

Vanderbilt Law Review

I. Employee and Independent Contractor Distinguished

During the abbreviated survey period there were no significant or momentous decisions by Tennessee courts--state or federal--involving agency principles. Indeed the only state appellate case properly to be considered here involved the rather pedestrian question of whether a petitioner for workmen's compensation benefits was, vis-a-vis the defendant prime contractor, an employee or an independent contractor.

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II. Misrepresentations of Agent

Butts v. Colonial Refrigerated Transportation, Inc. is merely another example of the Sixth Circuit's unfortunate proclivity for writing per curiam affirmances. It is well-nigh impossible to determine whether the liability of the defendant which …

Agency -- 1961 Tennessee Survey, Elvin E. Overton

Vanderbilt Law Review

The topic "agency" includes the areas of "master and servant" as well as those of "principal and agent." There were few cases in these areas decided by the Tennessee courts during the period under survey. Generally, basic principles were applied to routine cases.In certain instances the reliance upon a prior fact determination avoided the necessity of an elaborate treatment of the facts. In one or two cases the court reached a result that may not be deemed desirable though supported by much authority. Significant points received less attention than they deserved in certain cases. In one case the basic question …

Business Associations -- 1961 Tennessee Survey, Kenneth L. Roberts

Vanderbilt Law Review

I. CASES

A. Disregard of Corporate Entity

B. Action in Corporate Name After Revocation of Charter

C. Effect of Merger

1. Privilege Tax

2. Statute of Limitations

D. Judicial Intervention in Internal Corporate Affairs

E. Disregard of Fictitious Corporate Records

F. Criminal Liability of Corporation for Acts of Agents

G. Corporate Venue Under Federal Anti-Trust Laws

II. STATUTES

A. Unincorporated Associations Treated as Corporations

B. Amendments to Securities Law

C. Massachusetts Trust Act

D. Industrial Development Corporation "Projects"

E. Amendments Relating to General Welfare Corporations

F. Miscellany

Agency -- 1960 Tennessee Survey, Warren A. Seavey

Vanderbilt Law Review

In Richardson v. Snipes' both parties to an exchange of land employed the plaintiff, the contract providing that the defendant would pay no commission unless the transfer was completed. The other party satisfied the conditions imposed by the defendant, who, however, refused to go through with the exchange. The court properly reversed judgment for the defendant; but the result should not have turned upon the finding of bad faith of the defendant, as the court held. The plaintiff had performed his undertaking which was to provide one who would exchange titles and who would have gone through with the transaction …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Agency--Representations--Liability of Principal for Agent's Assault Where Consent Obtained by Fraud

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Constitutional Law--Due Process--Admissibility in State Criminal Prosecution of Results of Blood Test taken while Accused was Unconscious

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Constitutional Law--Privilege Against Self-Incrimination--Effect of Possible Federal Prosecution on Application of State Immunity Statute in State Criminal Proceedings

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Constitutional Law--Military Jurisdiction--Capital Offenses Committed by Civilian Dependents Accompanying Armed Forces Abroad in Peacetime

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Corporations--Election of Directors--Conflict Between Constitutional Right of Cumulative Voting and Statute Authorizing Classification of Directors

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Corporations--Officers--Secretary--Treasurer's Authority to Institute Litigation

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Corporations--Shareholder Voting Agreements--Applicability of Voting Trust Statute to Pooling Agreement Giving Irrevocable Proxies to …

Agency -- 1957 Tennessee Survey, F. Hodge O'Neal

Vanderbilt Law Review

Several interesting and significant decisions in the fields of agency and master and servant were handed down during the survey period. This article discusses the decisions in groups, each group being placed under a topic heading which is designed to give the reader an idea of the particular phase of agency law involved in that group of cases.

Establishing that Tort feasor is a Servant of Defendant: It is elementary law of course that a master is liable for the torts of his servant acting within the scope of his employment. A question often arises, however, as to whether a …

Recent Cases, Law Review Staff

Vanderbilt Law Review

RECENT CASES

AGENCY--INDEPENDENT CONTRACTOR--"ONE WAY LEASE" EFFECTIVE TO TERMINATE RELATIONSHIP

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COURTS--CIVIL RIGHTS ACT--IMMUNITY OF JUDGE FOR ACTS COMMITTED IN THE EXERCISE OF A JUDICIAL FUNCTION

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COURTS--CONTEMPT--VIOLATION OF COURT RULE BANNING PHOTOGRAPHY

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CRIMINAL LAW--ENTRAPMENT BY STATE OFFICIAL AS A DEFENSE TO FEDERAL PROSECUTION

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DAMAGES--BREACH OF WARRANTY--RECOVERY FOR LOSS OF PROFITS

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FEDERAL COURTS--CHOICE OF LAW--APPLICATION OF ERIE DOCTRINE TO DIVERSITY CASES INVOLVING FEDERAL COMMERCIAL PAPER

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TORTS--BATTERY--CONSENT OF MINOR TO SIMPLE OPERATION AS A DEFENSE

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TORTS--DUTY TO ACT--EMPLOYER'S ASSUMPTION OF A DUTY BY GIVING MEDICAL EXAMINATIONS TO EMPLOYEES

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Agency -- 1956 Tennessee Survey, F. Hodge O'Neal

Vanderbilt Law Review

The appellate courts of Tennessee and the United States Court of Appeals for the Sixth Circuit handed down during the survey period a considerable number of interesting and significant cases dealing with the Tennessee law of agency. This article groups the cases and arranges them under topic headings. In most instances, the discussion of the case or cases under a topic heading is preceded by brief background material designed to place the cases in their proper setting and aid the reader in evaluating them.

Agency -- 1954 Tennessee Survey, Merton L. Ferson

Vanderbilt Law Review

Scope of Employment: In the case of McKinnon v. Michaud,- it appeared that Mrs. McKinnon was in the business of distributing petroleum products wholesale. Her servant, Nickson, made delivery of gasoline to a service station, put the nozzle from his truck into the retailer's tank and then carelessly allowed the tank to overflow. Nickson then enhanced the danger by throwing water on the gasoline with the result that it splashed onto an open stove and caused an extensive fire that damaged the plaintiff. Mrs. McKinnon was held liable. The court did not decide whether Nickson's act of throwing water on …

Book Reviews, Walter P. Armstrong Jr., Robert A. Pascal

Vanderbilt Law Review

Bender's Federal Practice Forms By Louis R. Frumer Albany: Matthew Bender & Company, 1951-53, 4 Vols.(1 to follow), $85.00

reviewer: Walter P. Armstrong, Jr.

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Principles of Agency By Merton Ferson Brooklyn: The FoundationPress, 1954. Pp. xx, 490

reviewer: Robert A. Pascal