Law Commons^™

Gatekeeping The Gatekeepers: The Need For A Licensing Requirement For Crowdfunding Portals In The Wake Of The Dreamfunded Decision, Nick Worden

Michigan Business & Entrepreneurial Law Review

Most people are familiar with crowdfunding sites such as Kickstarter and GoFundMe—sites that allow users to part with their money in exchange for products or donate their capital to organizations they believe in. However, these sites have one trait in common: they do not offer contributors equity or a promise for future profits. For a long time, selling equity meant complying with the costly requirements of federal securities laws, which was cost-prohibitive for many small businesses; it was illegal for businesses to offer equity over a site in the way businesses on Kickstarter offered products. The Jumpstart Our Business Startups …

The Ground On Which We All Stand: A Conversation About Menstrual Equity Law And Activism, Bridget J. Crawford, Margaret E. Johnson, Marcy L. Karin, Laura Strausfeld, Emily Gold Waldman

Michigan Journal of Gender & Law

This essay grows out of a panel discussion among five lawyers on the subject of menstrual equity activism. Each of the authors is a scholar, activist, or organizer involved in some form of menstrual equity work. The overall project is both enriched and complicated by an intersectional analysis.

This essay increases awareness of existing menstrual equity and menstrual justice work; it also identifies avenues for further inquiry, next steps for legal action, and opportunities that lie ahead. After describing prior and current work at the junction of law and menstruation, the contributors evaluate the successes and limitations of recent legal …

Finance And Growth: The Legal And Regulatory Implications Of The Role Of The Public Equity Market In The United States, Ezra Wasserman Mitchell

Michigan Business & Entrepreneurial Law Review

The important study of the relationship between finance and economic growth has exploded over the past two decades. One of the most significant open questions is the role of the public equity market in stimulating growth and the channels it follows if it does. This paper examines that question from an economic, legal, and historical perspective, especially with regard to its regulatory and corporate governance implications. The US market is my focus.

In contrast to most studies, I follow both economic history and the actual flow of funds in addition to empirics and theory to conclude that the public equity …

Public Pensions And Fiduciary Law: A View From Equity, T. Leigh Anenson

University of Michigan Journal of Law Reform

Controversies involving fund management may be the next frontier of public pension litigation. Recent scandals involving fraud, bribery, and corruption of public pension officials and other third parties have drawn the public eye toward the management of retirement assets. Individual and entity custodians, including pension boards of trustees, are charged with making investment and other decisions relating to pension funds. Unlike private pensions, there is no federal oversight of asset managers or others in control of retirement funds. Yet these funds hold more than three trillion dollars in assets. Until now, the guardians of these monies have operated almost invisibly …

Parallel Justice: Creating Causes Of Action For Mandatory Mediation, Marie A. Failinger

University of Michigan Journal of Law Reform

The American common law system should adopt court-connected mandatory mediation as a parallel system of justice for some cases that are currently not justiciable, such as wrongs caused by constitutionally protected behavior. As evidence that such a system is practical, this Article describes systemic and ethical parallels between court-connected mediation and the rise of the equity courts in medieval England, demonstrating that there are no insurmountable practical objections to the creation of “mediation-only” causes of action. The Article then explores the constitutional concerns surrounding the idea of “mandatory mediation-only” causes of action, using constitutional hate speech and invasion of privacy …

Past The Pillars Of Hercules: Francis Bacon And The Science Of Rulemaking, Daniel R. Coquillette

University of Michigan Journal of Law Reform

The parallels between Bacon's career and that of Edward H. Cooper are, of course, obvious. Bacon was one of the great legal minds of his day. Unlike the common-law judges who formed the law by deciding cases, Bacon expressed his greatness in writing brilliant juristic treatises and, as Lord Chancellor, drafting one of the first modern rule systems, the Ordinances in Chancery (1617-1620). Indeed, my thesis is that Bacon invented modern, scientific rulemaking by fusing his new theories of inductive, empirical research with the traditions of equitable pleading and is, in fact, the intellectual forbearer of the likes of Charles …

Sliding Towards Educational Outcomes: A New Remedy For High-Stakes Education Lawsuits In A Post-Nclb World, Christopher A. Suarez

Michigan Journal of Race and Law

Sheff v. O'Neill ushered in a new wave of education reform litigation that may challenge the constitutionality of de facto segregation under state education clauses, but its remedy has been inadequate. This Note proposes a new desegregation remedy-the sliding scale remedy-to address socioeconomic isolation in this unique constitutional context. The remedy employs varying degrees of equity power depending on students' academic outcomes. It balances concerns over local control and separation of powers with the court's need to effectuate right, establishes a clear remedial principle, and ensures that states and school districts focus on students as they implement remedies.

Corporate Law In The Shanghai People's Courts, 1992-2008: Judicial Autonomy In A Contemporary Authoritarian State, Nicholas C. Howson

Articles

In late 2005 China adopted a largely rewritten Company Law that radically increased the role of courts. This study, based on a review of more than 1000 Company Law-related disputes reported between 1992 and 2008 and extensive interactions with PRC officials and sitting judges, evaluates how the Shanghai People's Court system has fared over 15 years in corporate law adjudication. Although the Shanghai People's Courts show generally increasing technical competence and even intimations of political independence, their path toward institutional autonomy is inconsistent. Through 2006, the Shanghai Court system demonstrated significantly increased autonomy. After 2006 and enactment of the new …

Judicial Independence And Company Law In The Shanghai People's Courts, 1992-2008, Nicholas C. Howson

Book Chapters

This chapter draws on a detailed study of corporate law adjudication in Shanghai from 1992 to 2008. The purpose of the study was to better understand the demonstrated technical competence, institutional autonomy, and political independence of one court system in the People's Republic of China ("PRC") in a sector outside of the criminal law. The study consisted of a detailed examination and comparison of full-length corporate law opinions for more than 200 reported cases, a 2003 Shanghai High Court opinion on the 1994 Company Law (describing a decade of corporate case outcomes), a 2007 report on cases implementing the Company …

Examining Presidential Power Through The Rubric Of Equity, Eric A. White

Michigan Law Review

In this Note I propose a method to examine presidents' actions taken outside the normal bounds of executive power by employing the general rubric of equity, in an attempt to find when the president acts with what I term "practical legitimacy." This would be a new category for executive actions that, while perhaps arguably illegal, are so valuable that we want to treat them as legitimate exercises of executive power. To do so, I first examine the history of equity, noting the many relevant parallels to our modern conception of executive power In light of these parallels, I argue that …

Don't Cross The Streams: Past And Present Overstatement Of Customary International Law In Connection With Conventional Fair And Equitable Treatment Obligations, Theodore Kill

Michigan Law Review

The obligation to provide fair and equitable treatment to foreign investors and investments has existed as a concept of international economic law at least since the 1919 Covenant of the League of Nations. The fair and equitable treatment provision is a key protection contained in the vast majority of modern bilateral investment treaties. Tribunals adjudicating alleged breaches of these fair and equitable treatment provisions have not arrived at a uniform interpretation of the term. As a threshold issue, however each tribunal must address the question of whether a state's obligations under a given treaty's fair and equitable treatment provision will …

Rewarding Outside Directors, Assaf Hamdani, Reinier Kraakman

Michigan Law Review

While they often rely on the threat of penalties to produce deterrence, legal systems rarely use the promise of rewards. In this Article, we consider the use of rewards to motivate director vigilance. Measures to enhance director liability are commonly perceived to be too costly. We, however demonstrate that properly designed reward regimes could match the behavioral incentives offered by negligence-based liability regimes but with significantly lower costs. We further argue that the market itself cannot implement such a regime in the form of equity compensation for directors. We conclude by providing preliminary sketches of two alternative reward regimes. While …

Patent Injunctions And The Problem Of Uniformity Cost, Michael W. Carroll

Michigan Telecommunications & Technology Law Review

In eBay v. MercExchange, the Supreme Court correctly rejected the Federal Circuit's general rule requiring that a permanent injunction follow from a finding that a patent is valid and infringed. Recognizing that one size does not fit all in patent law, the Court returned traditional equitable discretion to the district courts. With this discretion, district courts can now deploy remedies for patent infringement that are sensitive to relevant differences among industries, technologies, and entities. This Essay sets the Court's rejection of a uniform remedial regime in a larger context concerning the role of uniformity in patent law. It then explores …

The Zen Of Corporate Capital Structure Neutrality, Herwig J. Schlunk

Michigan Law Review

It is well understood that corporate capital structure affects tax collections. Most basically, corporate interest expense is deductible. With each interest accrual, the corporate tax base shrinks. Thus, there is a broad range of circumstances in which corporate managers are encouraged by the Internal Revenue Code (the "Code") to load their corporate capital structures with debt. But there is little support for the proposition that Conpress desires corporations to adopt such debt-laden capital structures. Indeed, much tax legislation suggests congressional displeasure with the achievable degree of corporate self- integration. On the other hand, corporate equity has its charms: shareholders are …

Clint Eastwood And Equity: Popular Culture's Theory Of Revenge, William I. Miller

Book Chapters

Revenge is not a publicly admissible motive for individual action. Church, state, and reason all line up against it. Officially revenge is thus sinful to the theologian, illegal to the prince, and irrational to the economist (it defies the rule of sunk costs). Order and peace depend upon its extirpation; salvation and rational political and economic arrangements on its denial. The official antivengeance discourse has a long history even preceding the Stoics, taken up and elaborated by medieval churchmen and later by the architects of state building.

Directorial Fiduciary Duties In A Tracking Stock Equity Structure: The Need For A Duty Of Fairness, Jeffrey J. Hass

Michigan Law Review

Part I of this article briefly describes the key distinctions between a tracking stock corporation and a conventional corporation. It then touches on the reasons why corporations have adopted tracking stock equity structures. Part II articulates the unique legal challenges presented by a tracking stock equity structure. Part III discusses the disclosure that tracking stock corporations have made with respect to these challenges. Part IV briefly summarizes the fiduciary duties of care and loyalty and explores why these duties are ill-equipped to address these challenges. Part V presents the duty of fairness and discusses the duty's elements in detail. In …

School Finance Adequacy As Vertical Equity, Julie K. Underwood

University of Michigan Journal of Law Reform

In this Article, Dean Underwood explains that school finance cases can be divided into three waves of reform. The first wave involved efforts to use the Federal Equal Protection Clause to overturn financing systems. Litigants in the second wave turned to state equal protection and due process clauses. Finally, the third wave involved the utilization of education clauses in state constitutions as the predominant litigation vehicle. These three waves embody two primary approaches to school finance litigation. The first approach involves a challenge to the adequacy of a state's funding system under either the state or federal equal protection clause, …

Establishing Education Program Inadequacy: The Alabama Example, Martha I. Morgan, Adam S. Cohen, Helen Hershkoff

University of Michigan Journal of Law Reform

The authors draw on their experience as attorneys for a statewide class of plaintiff school children in the liability phase of ongoing public education reform litigation in Alabama to demonstrate the availability of state and nationally recognized standards concerning educational resources (inputs) and results (outputs) that can serve as evidentiary tools for assessing and for establishing a state public education system's failure to satisfy constitutional mandates of educational adequacy. The Article discusses the usefulness and limitations of using such standards as a starting point in a court's constitutional analysis. It suggests an integrated approach that links input and output standards …

Accelerated Education As A Remedy For High-Poverty Schools, William H. Clune

University of Michigan Journal of Law Reform

High-poverty schools, and the students who attend them, have historically faced substantial challenges in providing and receiving, adequate education. Despite some relief from the courts, school finance remedies that require the redistribution of monetary aid to low-wealth districts have encountered strong political opposition. In this Article, Professor Clune makes a renewed claim for accelerated education as the primary focus of adequacy litigation in school reform cases. He describes the nation's educational condition, in which there exists a disturbing correlation between poverty and low educational outcomes. He then drafts a vision of a comprehensive, school reform remedy, one that emphasizes institutional …

Achieving Equity And Excellence In Kentucky Education, C. Scott Trimble, Andrew C. Forsaith

University of Michigan Journal of Law Reform

In this Article, Trimble and Forsaith discuss the landmark Kentucky school finance case, Rose v. Council for Better Education, 790 S.W.2d 186 (Ky. 1989), and the school reform efforts it spawned. In Council for Better Education, the Kentucky Supreme Court held that the state had failed its duty under the state constitution to provide all students with an adequate education, which it defined in terms of seven categories of knowledge and skills students should acquire. The State General Assembly responded with the Kentucky Education Reform Act (KERA), which significantly boosted state funding as well as established an ambitious accountability system …

Oklahoma School Finance Litigation: Shifting From Equity To Adequacy, Mark S. Grossman

University of Michigan Journal of Law Reform

This Article traces the history of Oklahoma school finance litigation from the initial challenge based on funding inequity to a recent lawsuit founded on alleged constitutional inadequacies in the state system. Although the legal challenge based on funding inequity was unsuccessful in the courts, the pendency of the suit helped push the state legislature toward some reforms. The threat of a new lawsuit based on alleged inadequacies in the state school system, together with a serious funding shortfall, propelled a comprehensive education reform plan through the state legislature in 1990. The association of local school boards that led the equity …

The Law's Conscience: Equitable Constitutionalism In America, Neil A. Riemann

Michigan Law Review

A Review of The Law's Conscience: Equitable Constitutionalism in America by Peter Charles Hoffer

Equity, Due Process And The Seventh Amendment: A Commentary On The Zenith Case, Patrick Devlin

Michigan Law Review

The seventh amendment to the United States Constitution requires that "[i]n Suits at common law . . . the right of trial by jury shall be preserved." What exactly is a suit at common law? When the amendment was enacted in 1791, there was no law that was common to all the states. In 1812 Supreme Court Justice Story, in a Circuit Court ruling, held that the common law alluded to was the common law of England, "the grand reservoir of all of our jurisprudence." This means that when today an American judge has to decide whether in any set …

Equity And The Constitution, Michigan Law Review

Michigan Law Review

A Review of Equity and the Constitution by Gary L. McDowell

A New Dimension In Equal Protection?, Theodore J. St. Antoine

Articles

Two of America's most cherished values will collide head-on this year, when the U.S. Supreme Court comes to grips with the most significant civil rights suit since the school desegregation cases of 1954. Arrayed on one side is the principle of governmental "color-blindness," the appealing notion that the color of a person's skin should have nothing to do with the distribution of benefits or burdens by the state. Set against it is the goal of a truly integrated society and the tragic realization that this objective cannot be achieved within the foreseeable future unless race and color are taken into …

Admiralty Procedure And Jurisdiction After The 1966 Unification, David W. Robertson

Michigan Law Review

From the nation's beginning, the federal district courts have been vested with jurisdiction in cases "of admiralty or maritime jurisdiction." Like its predecessor statute, section 1333 of the present Judicial Code asserts that the jurisdiction is "exclusive of the courts of the states," but the infamous "saving clause" goes on to negate that exclusivity in the bulk of maritime cases by giving the plaintiff the option of maintaining his action in any other court having jurisdiction over it. In "saving clause" cases--that is, cases that could have been brought in federal court under the admiralty jurisdiction, but which were maintained, …

Federal Rules Of Civil Procedure-Rule 19 And Indispensable Parties, Michigan Law Review

Michigan Law Review

The reformulation of compulsory joinder rules, urged by commentators for a decade, has been realized with the 1966 amendment to rule 19 of the Federal Rules of Civil Procedure. Prior to the amendment, courts consistently held that the absence from the lawsuit of persons who were "indispensable" deprived the court of power to adjudicate the action. The amendment to rule 19 is an effort to establish a methodology which requires a practical consideration of the factual situation at hand when determining the propriety of permitting a case to continue even though certain parties are not joined. A brief look at …

Federal Employee Invention Rights - Time To Legislate, Marcus B. Finnegan, Richard W. Pogue

Michigan Law Review

It is the purpose of this article to review judicial standards applicable to the determination of rights in inventions made by employees of the federal government, to note statutory provisions affecting the problem, to examine the content and effect of the present Executive program for determining such rights, to review and evaluate two fundamental and conflicting theories in this field, and to propose legislation establishing appropriate standards and procedures. This topic is believed to have general interest because, in addition to the urgencies suggested above, the problem touches some of the basic legal philosophy underlying the United States patent system.

Constitutional Law-Equal Protection Clause-County Unit Vote, Charles Myneder S.Ed.

Michigan Law Review

Plaintiffs brought an action against defendants, Chairman of the Georgia State Democratic Executive Committee and others, to restrain adherence to a state statute providing that the County Unit Vote shall determine the outcome of a primary election. Under the statute each county is alloted a number of unit votes. The candidate receiving the highest popular vote in the county is awarded the unit votes of that county. Plaintiffs, residents of the most populous county in the state, alleged that their votes had on an average but one-tenth the weight of those in the other counties in the state. From a …

Federal Procedure--Third-Party Practice--Contbibution Among Joint Or Concurrent Tort-Feasors, Paul M.D. Harrison

Michigan Law Review

A sued B for injuries arising out of a collision between B's taxicab and an automobile driven by C, in which A was riding as a guest passenger. B filed a third-party complaint against C, who denied B's allegation of negligence and counterclaimed against B for personal injuries. A did not amend his complaint to assert a claim against C. The jury found that A's injury was caused by the concurrent negligence of B and C. Judgment for $11,500 was given to A against B, and B was awarded a judgment against …