Law Commons^™

Fee-Shifting Statutes And Compensation For Risk, Maureen S. Carroll

Articles

A law firm that enters into a contingency arrangement provides the client with more than just its attorneys' labor. It also provides a form of financing, because the firm will be paid (if at all) only after the litigation ends; and insurance, because if the litigation results in a low recovery (or no recovery at all), the firm will absorb the direct and indirect costs of the litigation. Courts and markets routinely pay for these types of risk-bearing services through a range of mechanisms, including state fee shifting statutes, contingent percentage fees, common-fund awards, alternative fee arrangements, and third-party litigation …

Standing In The Way Of The Ftaia: Exceptional Applications Of Illinois Brick, Jennifer Fischell

Michigan Law Review

In 1982, Congress enacted the Foreign Antitrust Trade Improvements Act (FTAIA) to resolve uncertainties about the international reach and effect of U.S. antitrust laws. Unfortunately, the FTAIA has provided more questions than answers. It has been ten years since the Supreme Court most recently interpreted the FTAIA, and crucial questions and circuit splits abound. One of these questions is how to understand the convergence of the direct purchaser rule (frequently referred to as the Illinois Brick doctrine) and the FTAIA. Under the direct purchaser rule, only those who purchase directly from antitrust violators are typically permitted to sue under section …

Remedying Wrongful Execution, Meghan J. Ryan

University of Michigan Journal of Law Reform

The first legal determination of wrongful execution in the United States may very well be in the making in Texas. One of the state's district courts is in the midst of investigating whether Cameron Todd Willingham, who was executed in 2004, was actually innocent. The court's investigation has been interrupted by objections from Texas prosecutors, but if the court proceeds, this may very well become a bona fide case of wrongful execution. Texas, just like other jurisdictions, is ill equipped to provide any relief for such an egregious wrong, however. This Article identifies the difficulties that the heirs, families, and …

Presumed Guilty Until Proven Innocent: The Burden Of Proof In Wrongful Conviction Claims Under State Compensation Statutes, Daniel S. Kahn

University of Michigan Journal of Law Reform

Despite significant efforts to uncover and prevent wrongful convictions, little attention has been paid to the compensation of wrongfully convicted individuals once they are released from prison. State compensation statutes offer the best path to redress because they do not require the claimant to prove that the state was at fault for the wrongful conviction and because they are not susceptible to the same political influences as other methods of compensation. However, even under compensation statutes, too many meritorious claims are dismissed, settled for far too little, or never brought in the first place. After examining the current statutory framework, …

The Unintended Consequence Of Tort Reform In Michigan: An Argument For Reinstating Retailer Product Liability, Ashley L. Thompson

University of Michigan Journal of Law Reform

Tort reform became an important issue during the 1994 Congressional Campaign as part of the Republican Party's "Contract with America. "Since then, many federal and state laws have attempted to reduce both liability and recovery in tort actions. In 1996, Michigan passed the Tort Reform Act, encompassing many drastic changes to state tort law. One provision of the Act, § 294 7, scaled back liability against non-manufacturing retailers in product liability actions. The Michigan Supreme Court interpreted the exceptions of the law narrowly and the prohibition broadly, essentially barring recovery from retailers. Since 1996, this provision has prevented victims injured …

The Proper Tax Treatment Of The Transfer Of A Compensatory Partnership Interest, Douglas A. Kahn

Articles

If a person receives property as payment for services, whether for past or future services, the receipt typically constitutes gross income to the recipient. If a person performs services for a partnership or agrees to perform future services, and if the person receives a partnership interest as compensation for the past or future services, one might expect that receipt to cause the new partner to recognize gross income in an amount equal to the fair market value of the partnership interest. After all, if a corporation compensated someone for services rendered or to be rendered by transferring the corporation's own …

Standing Up To Wall Street (And Congress), Richard W. Painter

Michigan Law Review

In 1992, Arthur Levitt co-chaired a fundraising dinner for William Clinton. The dinner raised $750,000 (p. 7). Clinton was elected President, and Levitt got the job he wanted: Chairman of the Securities and Exchange Commission. Levitt, a former Chairman of the American Stock Exchange and a connected Democrat, was well qualified for the job. His, however, became a pyrrhic victory when accountants, issuers, broker-dealers, and other special interests used their own political connections to frustrate just about everything he sought to do. Levitt tells the story of his struggle against these well-funded interests in Take on the Street. One of …

Pay Equity For Coaches And Athletic Administrators: An Element Of Title Ix?, Barbara Osborne, Marilyn V. Yarbrough

University of Michigan Journal of Law Reform

In this Article, Professors Osborne and Yarbrough address the issue of gender discrimination in the compensation of coaches and athletic administrators. They discuss the application of the Equal Pay Act of 1963 and Title VII to pay inequity claims and conclude that both have proven to be inadequate as a means of addressing the problem. Professors Osborne and Yarbrough then present Title IX as a way of countering the problem of gender discrimination in the compensation of coaches. They also discuss the prospects for gender equality in compensation by considering several cases addressing the issue. Finally, they offer recommendations both …

The Constitutionality Of Taxing Compensatory Damages For Mental Distress When There Was No Accompanying Physical Injury, Douglas A. Kahn

Articles

Since 1919, statutory tax law has excluded from gross income compensatory damages received on account of a personal injury or sickness.1 The current version of that exclusion is set forth in section 104 (a) (2) of the Internal Revenue Code of 1986.2 The construction of that exclusion, both by the courts and by the Commissioner, underwent significant alterations over the 80-year period that the provision has existed.3 The statute itself was amended several times, most recently in 1996.4 It is the 1996 amendment that has raised a constitutional issue concerning the validity of a portion of the statute.5

The Copyright Act Of 1976 And Prejudgment Interest, Jon M. Powers

Michigan Law Review

This Note argues that prejudgment interest should be presumptively available on damages-plus-profits awards under section 504(b) but should not be available for statutory damages under section 504(c). Part I argues that Supreme Court precedent suggests that the explicit reference to interest found in the Patent Act does not prevent courts from awarding prejudgment interest under the 1976 Copyright Act. Part II asserts that the 1976 Copyright Act's silence regarding prejudgment interest does not represent a congressional choice to exclude this remedy and that, in the face of this silence, the underlying purposes of section 504 should determine the propriety of …

Taxation Of Damages After Schleier - Where Are We And Where Do We Go From Here?, Douglas A. Kahn

Articles

This article will examine the reasoning of the Schleier decision and speculate as to how taxation of pre-1996 damages will likely apply in light of Schleier. First, the article will set forth a very brief history of the judicial and administrative constructions of the statutory exclusion, and explore tax policy justifications for providing an exclusion from gross income for certain damages. These latter two items (set forth in Parts II and III of this article) are areas that have been extensively addressed previously by several commentators, including the author of this article.' The reason for exploring tax policy issues is …

Compensatory And Punitive Damages For A Personal Injury: To Tax Or Not To Tax, Douglas A. Kahn

Articles

Since the adoption in 1919 of the Revenue Act of 1918, damages received on account of personal injuries or sickness have been excluded by statute from gross income.1 This exclusion, which does not apply to reimbursements for medical expenses for which the taxpayer was previously allowed a tax deduction,2 is presently set forth in section 104(a)(2). One might expect that a provision having recently attained the ripe age of 75 years without change in its basic language would have a settled meaning. However, recent litigation under section 104(a)(2) bristles with unsettled issues. Does the exclusion apply to punitive damages? To …

Making Uncle Sam Pay: A Review Of Equal Access To Justice Act Cases In The Sixth Circuit, 1983-1987, Martin Geer, Paul D. Reingold

Articles

Despite the recent admonition of the Supreme Court that a "request for attorneys' fees should not result in a second major litigation,"12 the courts have been frequently called on to interpret the often ambiguous language of the EAJA. The U.S. Court of Appeals for the Sixth Circuit has not been spared this difficult chore. While the 1985 amendments have clarified some provisions of the Act and affected some major decisions in the Sixth Circuit, the recent changes have also left other previously settled areas in a state of flux. This article will review the Sixth Circuit's EAJA decisions from 1983-1987, …

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 …

Comparable Worth -- The Theory, Its Legal Foundation, And The Feasibility Of Implementation, Carin Ann Clauss

University of Michigan Journal of Law Reform

County of Washington v. Gunther was decided by the Supreme Court over five years ago. In that case, the Court, resolving a conflict among the circuits, ruled that sex-based wage discrimination claims could proceed under Title VII of the Civil Rights Act of 1964 without regard to the limiting "equal work" standard of the Equal Pay Act. Following this decision, it was generally assumed that the courts would become the major forum for redressing sex-based wage discrimination. The anticipated litigation explosion never took place. Few wage discrimination suits have been filed, and even fewer have been successful. What progress has …

Thoughts On Comparable Worth Litigation And Organizational Strategies, Nancy Gertner

University of Michigan Journal of Law Reform

To watch the evolution of Title VIP is to watch the gradual constricting of a law that many had heralded as a tool of social change for women. Its passage represented a statement that the so-called free market had not worked for women. Women were denied access to higher paying and high-status positions. Even when a job was integrated, women's work was undervalued and their wages frequently depressed. With the passage of Title VII came the hope that the law would do what the market could not-break the cycle of discrimination.

Sex discrimination, in contrast with other forms of discrimination, …

The Deduction Of Unemployment Compensation From Back-Pay Awards Under Title Vii, Eric A. Martin

University of Michigan Journal of Law Reform

This Note argues that federal courts should not deduct unemployment insurance benefits from Title VII back-pay awards. Part I reviews the legislative history and purposes behind the remedial provisions of Title VII. Part I also presents the arguments that courts have advanced regarding the deduction of unemployment benefits from Title VII back-pay awards. Part II assesses these arguments in light of analogous common law doctrine and the legislative objectives of Title VII, and advances arguments not yet considered by the courts. Finally, Part II concludes that federal courts should resolve this division of authority by not deducting unemployment benefits from …

Awarding Attorneys' Fees To Prevailing Pro Se Litigants, Michigan Law Review

Michigan Law Review

This Note examines- the propriety of awarding attorneys' fees to prevailing pro se litigants in the federal courts. It focuses on the four major statutes under which almost all pro se cases have been filed: the Freedom of Information Act of 1974 (FOIA), the Privacy Act of 1974 (Privacy Act), the Civil Rights Attorney's Fees Awards Act of 1976 (CRAFAA), and the Truth in Lending Act (TILA). In so doing, it will attempt to devise common principles that can be applied to most requests for pro se attorneys' fees. Part I looks first to the statutes' language and legislative histories …

Set-Offs Against Back Pay Awards Under The Federal Age Discrimination In Employment Act, Michigan Law Review

Michigan Law Review

This Note proposes a theory to govern set-offs against ADEA damage awards that best effectuates congressional ~tent. It suggests that courts should set off those types of benefits received after a violation that, had they been lost because of a violation, would have been included in the damage award. Part I identifies the proper measure of damages under the ADEA as the net loss of 'job-related benefits," doubled in cases of willful violation. It explains first that job-related benefits should be broadly defined to include unemployment compensation and social security benefits as well as wages, and second that the congressional …

Tort Claims Under The Present And Proposed Bankruptcy Acts, Stephen Allen Edwards

University of Michigan Journal of Law Reform

Congress may soon enact the first complete revision of the United States bankruptcy laws in almost four decades. Among the numerous changes proposed by the legislature is a major alteration of the provability and dischargeability of tort claims asserted against the bankrupt's estate. This article will discuss the treatment of tort claims in the present Act and the changes to be made by the proposed Act, and will evaluate alternative approaches to compensating victims of bankrupt tortfeasors.

Punitive Damages Under Section 102 Of The Labor-Management Reporting And Disclosure Act, S. Thomas Wienner

University of Michigan Journal of Law Reform

It is firmly established that in a suit brought under section 102, a union member may ordinarily recover compensatory damages for any injury proximately caused by a violation of Title I or section 609. The courts are divided, however, on the question of whether a plaintiff may be awarded punitive damages under section 102. This article will address that question by discussing the language and the legislative history of section 102, the conflicting decisions of the federal courts, and the relevant policy considerations.

Tort Liability Of Labor Unions For Picket Line Assaults, David R. Case

University of Michigan Journal of Law Reform

This article will discuss whether tort actions against unions for picket line assaults are preempted by the National Labor Relations Act, and if not preempted, what forums are available to hear such actions. This article will also examine the theories that have been used to hold unions liable for the assaults committed by their picketers. Included in this discussion will be an analysis of the policy considerations offered in support of the various theories of liability.

Sabbatino Doctrine Modified In Foreign Assistance Act Of 1964, Michigan Law Review

Michigan Law Review

Prior to Banco Nacional de Cuba v. Sabbatino, one of the United States Supreme Court's most controversial recent decisions touching on matters of international law, it had been held that American courts could not question titles to property acquired by virtue of a public taking decreed by a recognized foreign government and carried out within its territory. This concept of judicial abstention, embodied in the "act of state doctrine," was held applicable in Sabbatino even though it was alleged that the asserted claim to the property stemmed from a confiscation that violated customary international law. This decision led Congress …

Soviet Tort Law: The New Principles Annotated, Whitmore Gray

Articles

In 1961, the federal legislature, the USSR Supreme Soviet, finally adopted a skeleton code of fundamental principles of civil law.10 This recodification, which incorporates 40 years of case law and doctrinal development as well as some major innovations, will be the basis for individual civil codes to be adopted in each of the 15 union republics. While there may be some slight modifications, and certainly some variety in the degree of additional detail included in the individual codes by each republic,11 these Principles present already a fairly comprehensive picture of the shape of the future law. They are about as …

Evidence- Statutes - Contradiction Of Legislative Journal Entry To Show Date Of Receipt Of Bill By Governor, Emerson T. Chandler

Michigan Law Review

Plaintiff, a tax assessor, sought to recover salary claims against a county, contending that compensation was payable under an act passed by the General Assembly but vetoed by the governor. An entry in the House journal reported delivery of the bill to the governor on March 5. The Assembly adjourned March 13, and the governor vetoed the bill March 28. An official receipt dated March 10 had been given for the bill by the governor's office. The Arkansas Constitution gives the governor five days within which to approve or disapprove the bill. If he fails to act, the bill becomes …

The Right Of A Bona Fide Occupant Of Land To Compensation For His Improvements, Henry W. Rogers

Articles

It may be observed, in the first place, that the civil law afforded protection to the bona fide occupant of land, who had made useful or permanent improvements on the land, believing himself to be the true owner. The civil law never permitted one who was in the possession of land in good faith, to be turned out of his possession by the rightful owner, without any compensation for the additional value he has given to the soil by the improvements he had made; but it allowed him to offset the value of his improvements to the extent, at least, …