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Brooklyn Journal of Corporate, Financial & Commercial Law

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Tax Law Analysis, Bradley T. Borden Jun 2024

Tax Law Analysis, Bradley T. Borden

Brooklyn Journal of Corporate, Financial & Commercial Law

Tax law has a unique analytical framework, which the nature of tax law requires. In areas of uncertainty, advisors and taxpayers are unable to determine the outcome of some reporting positions. If a taxpayer takes a reporting position that results in the taxpayer paying less tax at the time a tax return is filed, the taxpayer runs the risk of being required to pay tax later upon an IRS audit. Congress recognizes that there are areas of uncertainty in tax law and only imposes penalties if the authority supporting a reporting position is weak. To determine the strength of a …


Running From Blanket Licensing: How Fitness Platforms Do Not Sync With Current Music Licensing Procedure, Kathryn Defranco Jun 2024

Running From Blanket Licensing: How Fitness Platforms Do Not Sync With Current Music Licensing Procedure, Kathryn Defranco

Brooklyn Journal of Corporate, Financial & Commercial Law

Online Fitness Platforms, like Peloton, have become ubiquitous in a modern post-Covid world. Fitness classes are catered to the musical interests of their users, increasing user satisfaction. Although technology has advanced to accommodate the remote fitness industry, the legal structures in place for synchronization licenses have not. Such platforms have a unique need to clear music on a quick and consistent basis that does not break the bank. Downtown Music Publishing LLC v. Peloton Interactive, Inc., highlights the necessity for a federal statutory scheme similar to those used for other music licenses. A solution that protects competition but does not …


Cutting The Corporate Puppet Strings Off Your Physician’S Hands: How Approval Requirements For Material Health Care Transactions Will Improve Patient Outcomes, Jacqueline Grundfast Jun 2024

Cutting The Corporate Puppet Strings Off Your Physician’S Hands: How Approval Requirements For Material Health Care Transactions Will Improve Patient Outcomes, Jacqueline Grundfast

Brooklyn Journal of Corporate, Financial & Commercial Law

Health care expenditures have grown substantially in recent years, captivating the attention—and investments—of private equity firms. While funding appears attractive to health care institutions, the conflicting priorities of hospitals and firms regarding patient outcomes and monetary gain lead to detrimental impacts on the quality, access, and cost of patient care. These effects highlight the current deficit of federal and state regulation targeting private equity involvement in health care. Recently, states have responded to this absence of legislation by enacting or proposing new laws to govern material health care transactions. In May 2023, New York followed the trend, ratifying Article 45-A …


Johnson & Johnson’S Dance With Bad Faith: A Look At How Large Corporations Utilize The Bankruptcy Code To Avoid Liability From Mass Tort Claims, Amy West Jun 2024

Johnson & Johnson’S Dance With Bad Faith: A Look At How Large Corporations Utilize The Bankruptcy Code To Avoid Liability From Mass Tort Claims, Amy West

Brooklyn Journal of Corporate, Financial & Commercial Law

Since Congress enacted the current Bankruptcy Code in 1978, large corporations have strategically used bankruptcy law to evade liability in mass tort claims. This Note examines three case studies illustrating such attempts. The first case involves Johnson & Johnson, which tried to use the so-called “Texas Two-Step” maneuver to circumvent liability for 38,000 pending talc-related lawsuits linked to injuries caused by its well-known Baby Powder. The second case is the Purdue Pharma bankruptcy. Purdue Pharma, the pharmaceutical manufacturer responsible for creating OxyContin, faces thousands of claims for strict liability, negligence, and failure to warn. The issue here is whether the …


Sounds Of Silence: Codifying The Unimpaired Creditor’S Right To Post-Petition Interest At The Contract Rate, Matthew Killip Jun 2024

Sounds Of Silence: Codifying The Unimpaired Creditor’S Right To Post-Petition Interest At The Contract Rate, Matthew Killip

Brooklyn Journal of Corporate, Financial & Commercial Law

Capital markets, reliant on a framework of transactional predictability and legal surety, face a nuanced challenge arising from the U.S. Bankruptcy Code’s provisions for solvent debtors in Chapter 11 cases. This challenge is the precise methodology for calculating post-petition interest rates on claims of unimpaired, unsecured creditors—a calculation that hinges on whether to apply the contract, state law, or the federal judgment rate. Section 502(b)(2) of the Bankruptcy Code generally prohibits the accrual of interest after a bankruptcy filing. However, this ban is circumvented when the debtor is solvent—the so-called “solvent debtor exception.” This exception, stemming from pre-Bankruptcy Code practice, …


Using Express Federal Preemption To Avoid A Costly State-By-State Regulatory Landscape For Social Media Platform, Benjamin Summers-Berger Jun 2024

Using Express Federal Preemption To Avoid A Costly State-By-State Regulatory Landscape For Social Media Platform, Benjamin Summers-Berger

Brooklyn Journal of Corporate, Financial & Commercial Law

Over the last five years, the federal government has been slow to respond to the growing number of calls for social media regulation. Social media has a massive impact on American life, fostering connections among people and amplifying information. The companies that own and operate these platforms enjoy a power to disseminate information that has been likened to that of the Catholic Church in the Middle Ages. Yet, there is no substantive regulation of these companies by the federal government. Instead, state governments are attempting to fill the regulatory void left by the federal government. As seen with gerrymandering, if …


The Section 1031 Qualified-Use Requirement, Bradley T. Borden Jun 2024

The Section 1031 Qualified-Use Requirement, Bradley T. Borden

Brooklyn Journal of Corporate, Financial & Commercial Law

Section 1031 allows owners of real property to dispose of their property and acquire replacement real property tax-free, and it is one of the most widely used transactional-planning provisions in federal tax law. With the variation in size of the transaction to which section 1031 applies comes varying levels of advice available to property owners. The significant variation in advice that property owners receive affects the actions that they take with respect to their property. Such variation appears to be most pronounced with respect to section 1031 exchanges that occur in proximity to business transactions (i.e., contributions to and distributions …


Ticnerships, Bradley T. Borden Jun 2024

Ticnerships, Bradley T. Borden

Brooklyn Journal of Corporate, Financial & Commercial Law

Tenancy-in-common (TIC) ownership has been around for centuries, but the commercial use of TIC ownership of real property has accelerated over the last couple of decades. The impetus for TIC ownership of real property is twofold: (1) a desire property owners have to obtain the tax benefits of section 1031 of the Internal Revenue Code and (2) the desire property owners have to own property with other property owners and other professional managers and developers. Because section 1031 only applies to exchanges of real property, interests in partnerships and LLCs—the most common type of real property ownership—do not qualify for …


Baseball's Antitrust Exemption Still Looms Large For Minor Leaguers Despite Their Recent Unionization & Collective Bargaining Agreement, Rodney William Cannon Jun 2024

Baseball's Antitrust Exemption Still Looms Large For Minor Leaguers Despite Their Recent Unionization & Collective Bargaining Agreement, Rodney William Cannon

Brooklyn Journal of Corporate, Financial & Commercial Law

Over a hundred years ago, the Supreme Court of the United States granted Major League Baseball (MLB) an antitrust exemption, allowing the organization to engage in anticompetitive practices that antitrust laws are designed to prevent. Today, MLB remains the only sports league with an antitrust exemption, despite legal challenges and inquiries, especially regarding its impact on the recently unionized Minor League Baseball players in 2022. Issues related to the exemption arise from the history of poor conditions for Minor League Baseball players in relation to their wages, living conditions, and transportation, among others. Despite recent improvements resulting from unionization and …


Tax Law Analysis Applied To Section 1031 Exchanges & Proximate Business Transactions, Bradley T. Borden Jun 2024

Tax Law Analysis Applied To Section 1031 Exchanges & Proximate Business Transactions, Bradley T. Borden

Brooklyn Journal of Corporate, Financial & Commercial Law

The popularity of nonrecognition of gain under section 1031 of the Internal Revenue Code attracts advisors from several corners of the real estate industry, including real estate attorneys; real estate professionals, such as brokers; section 1031 qualified intermediaries; and tax advisors. The varying degrees of professional training often results in advice varying from one advisor to the next. Nowhere is this more apparent than with respect to so-called “drop-and-swap” and “swap-and-drop” transactions. Some advisors claim that property owners must hold property for a specific period of time before or after an exchange to qualify for section 1031 nonrecognition. Others advise …


The Section 1031 Exchange Requirement, Bradley T. Borden Jun 2024

The Section 1031 Exchange Requirement, Bradley T. Borden

Brooklyn Journal of Corporate, Financial & Commercial Law

Section 1031 is the most widely used transactional tax-planning tool in federal income tax law. It allows owners of real property to transfer their property and acquire like-kind real property without recognizing taxable gain. Yet one of its most fundamental elements—the exchange requirement—remains under-analyzed and widely misunderstood, with costly consequences to untold numbers of taxpayers every year. Inaccurate information regarding the exchange requirement is disseminated to property owners by advisors and exchange professionals, causing property owners to forego business and transactional opportunities. Other property owners pay for costly transactional planning at the urging of advisors who misunderstand the exchange requirement. …


Reconsidering Scienter With Social Media: Adapting Rule 10b-5 In The Age Of Elon Musk Tweets, John Madigan Jun 2024

Reconsidering Scienter With Social Media: Adapting Rule 10b-5 In The Age Of Elon Musk Tweets, John Madigan

Brooklyn Journal of Corporate, Financial & Commercial Law

Over the last twenty years, the rise of social media has dramatically changed how the world communicates. One such transformation is the use of social media platforms to disseminate information regarding the financial markets, aiding investors in their trading decisions. While increased access to financial information has democratized retail consumers’ access to capital markets, it has also introduced a level of instability. Furthermore, social media enables individuals with mass followings to disseminate their thoughts, opinions, or information, potentially influencing investors’ behavior and creating an environment conducive to securities fraud. Since its promulgation, the United States Securities and Exchange Commission (SEC) …


Situating Bystanders Within Strict Products Liability, Mark A. Geistfeld Dec 2023

Situating Bystanders Within Strict Products Liability, Mark A. Geistfeld

Brooklyn Journal of Corporate, Financial & Commercial Law

"The largely neglected role of bystanders within products liability is reflected in the extensive scholarship of Professor Aaron Twerski—the rightly celebrated honoree of this symposium. Within Twerski’s vast body of impressive publications, his limited discussions of bystanders align with the widely held assumption that, aside from the problems they pose for the consumer expectations test, bystanders do not merit much attention within the context of products liability. Bystander injuries are much more important than is commonly recognized; one must focus on them to adequately identify the conditions under which consumer-choice doctrines properly limit tort liability. Because the varied rules of …


In The Duty Wars, I'M Switzerland, W. Bradley Wendel Dec 2023

In The Duty Wars, I'M Switzerland, W. Bradley Wendel

Brooklyn Journal of Corporate, Financial & Commercial Law

The “duty wars” have been raging among tort scholars for some time, sparked by the Third Restatement’s deflationary approach to the duty element of the negligence cause of action. Defenders of the traditional approach to duty insist that it is necessary to ensure that tort law stays on the right side of the boundary between public and private law insofar as the negligence tort recognizes a relational conception of rights owed among individuals. The worry is that negligence shorn of the duty element becomes an instrument of efficiency or deterrence rather than recognizing obligations. Relatedly, the approach pioneered by the …


Not All Product-Caused Harm Is "Products Liability", Michael D. Green Dec 2023

Not All Product-Caused Harm Is "Products Liability", Michael D. Green

Brooklyn Journal of Corporate, Financial & Commercial Law

"Since two important federal preemption decisions by the United States Supreme Court, those injured by warnings defects in the drugs they take may sue the manufacturer only if the patient took a brand-name drug. Those who took the generic version of the drug, which comprise approximately 90 percent of all prescriptions, cannot sue the drug manufacturer regardless of how inadequate its labeling is in explaining the risks of consuming the drug. Clever plaintiffs’ lawyers began bringing suits on behalf of their generic-drug-consuming clients against brand-name manufacturers that, under the Food, Drug, and Cosmetic Act, control the labeling both on their …


Professor Aaron Twerski: Special Master In The 9/11 Responders' Litigation, Stephan Landsman Dec 2023

Professor Aaron Twerski: Special Master In The 9/11 Responders' Litigation, Stephan Landsman

Brooklyn Journal of Corporate, Financial & Commercial Law

No abstract provided.


Enterprise, Liability, And Insolvency: An Essay In Honor Of Aaron Twerski, Edward J. Janger Dec 2023

Enterprise, Liability, And Insolvency: An Essay In Honor Of Aaron Twerski, Edward J. Janger

Brooklyn Journal of Corporate, Financial & Commercial Law

Modern tort law links concepts of duty, duty of care, causation, and compensatory damages in a manner that, it is hoped, simultaneously communicates moral suasion, redresses wrongs, and incentivizes “reasonable” socially appropriate behavior. Deterrence and corrective justice differ fiercely about the scope of and rationale for liability, but both assume that tortfeasors are good for their debts (or at least insured). This is not always the case. Sometimes, debtors are insolvent. Bankruptcy law provides individuals with a route to a fresh start, and this paper considers the relationship between modern tort law and the discharge of debt in bankruptcy. The …


Aaron Twerski — Practical Wisdom At Ground Zero, Anthony J. Sebok Dec 2023

Aaron Twerski — Practical Wisdom At Ground Zero, Anthony J. Sebok

Brooklyn Journal of Corporate, Financial & Commercial Law

This Article celebrates Professor. Aaron Twerski’s “practical wisdom” in crafting a solution (with Jim Henderson) to a problem faced by Judge Alvin Hellerstein in the so-called 9/11 First Responder cases. The problem was that Congress did not include these plaintiffs within the Victims Compensation Fund (“VCF”) despite there being every reason to suspect that the interaction of workersman’s compensation law and tort law, if left to operate on their own, would generate a politically unacceptable outcome. Despite his clear misgivings – —expressed decades earlier – —about allowing those who control the workplace to enjoy the benefits of limited liability guaranteed …


Getting The Law Right: An Essay In Honor Of Aaron Twerski, John C. P. Goldberg, Benjamin C. Zipursky Dec 2023

Getting The Law Right: An Essay In Honor Of Aaron Twerski, John C. P. Goldberg, Benjamin C. Zipursky

Brooklyn Journal of Corporate, Financial & Commercial Law

Written in honor of the great torts scholar Aaron Twerski, this article critically analyzes disturbing developments in New York negligence law as it applies to police who injure innocent bystanders. With the New York Court of Appeals’ 2022 decision in Ferreira v. City of Binghamton as a focal point, it argues that Ferreira and other contemporary decisions have largely betrayed the promise of the 1929 Court of Claims Act, which waived state and municipal immunity for police torts. While courts may be warranted in recognizing certain limits on police negligence liability that do not apply to private actors, the current …


Engaging With Professor Twerski In The Choice Of Law Revolution, Robert A. Sedler Dec 2023

Engaging With Professor Twerski In The Choice Of Law Revolution, Robert A. Sedler

Brooklyn Journal of Corporate, Financial & Commercial Law

No abstract provided.


It's Finally Time For A National Data Privacy Law: A Discussion Of The American Data Privacy And Protection Act (Adppa), Erin J. An Dec 2023

It's Finally Time For A National Data Privacy Law: A Discussion Of The American Data Privacy And Protection Act (Adppa), Erin J. An

Brooklyn Journal of Corporate, Financial & Commercial Law

Millions of Americans face unprecedented privacy risks related to their data, often without their awareness. With the increasing value of consumer data and its growing utilization by businesses, there is a growing demand for greater transparency and privacy protections. As of 2023, no comprehensive federal law governs data privacy in the United States, leaving citizens with limited protections. Introduced to Congress on June 21, 2022, the American Data and Privacy Protection Act (ADPPA) successfully passed the House of Representatives Committee on Energy and Commerce, making it the furthest a national comprehensive data privacy bill has progressed through the federal legislative …


Punishing Debtors In Bankruptcy During Covid-19, David Y. Kamins Dec 2023

Punishing Debtors In Bankruptcy During Covid-19, David Y. Kamins

Brooklyn Journal of Corporate, Financial & Commercial Law

The 2019 Coronavirus Pandemic (COVID-19) led to widespread government-mandated lockdowns, causing numerous businesses to close their doors permanently. To assist financially distressed businesses and individuals during the pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The Small Business Administration (SBA)—the agency tasked with implementing the CARES Act—distributed funds to individuals and businesses through the Paycheck Protection Program (PPP). Part of the SBA’s eligibility requirements to receive funding through the PPP included an exclusion provision that barred debtors presently involved in any bankruptcy proceeding from receiving any PPP funding. Many debtors in bankruptcy filed suits in …


The Digital Advertising Tax: An Overstep By State Taxing Jurisdictions, Sammy Reisner Dec 2023

The Digital Advertising Tax: An Overstep By State Taxing Jurisdictions, Sammy Reisner

Brooklyn Journal of Corporate, Financial & Commercial Law

In 2021, the Maryland Senate voted to override the governor’s veto to pass House Bill 732, marking the enactment of the first digital advertising tax in the United States. The tax imitated existing digital services taxes that have become popular internationally. Recognizing the need for a global solution, the OECD and the G20 formed the Inclusive Framework to ensure that countries receive their fair share of taxes without subjecting businesses to double taxation. Domestically, however, no such resolution has been reached, and several other states, inspired by Maryland’s initiative, followed suit by introducing their own versions of a digital advertising …


Copyrighting Compositions: How Inconsistencies Within The Circumstancial Evidence Analysis Affects Musical Composition Copyright Infringement Plaintiffs, Stephanie Stern Dec 2023

Copyrighting Compositions: How Inconsistencies Within The Circumstancial Evidence Analysis Affects Musical Composition Copyright Infringement Plaintiffs, Stephanie Stern

Brooklyn Journal of Corporate, Financial & Commercial Law

To resolve a musical composition copyright infringement case, courts employ the circumstantial evidence analysis. This analysis involves assessing whether the two works are substantially similar and whether the defendant had access to the plaintiff’s copyright-protected work. Despite efforts to keep pace with the rapidly changing world of music creation, these tests have fallen behind: circuits are split with respect to the way they determine substantial similarity, and courts have failed to update the access requirement in the age of the internet. Additionally, courts must adhere to the rules of either the 1909 Copyright Act or the 1976 Copyright Act, depending …


Drowning Unicorns: The Case Against More Disclosure In Private Markets, Matthew Whang Dec 2023

Drowning Unicorns: The Case Against More Disclosure In Private Markets, Matthew Whang

Brooklyn Journal of Corporate, Financial & Commercial Law

This Note traces the economic and legal factors that led to the proliferation of unicorn companies—private, venture-backed startups valued over one billion dollars—over the past decade and argues that unicorn companies should be subject to fewer security disclosures. A lighter disclosure regime fosters greater private-market illiquidity, which, in turn, better aligns an investor’s profit motive with prudential corporate management. Because they cannot flee at the first sign of trouble, shareholders are incentivized to play a more active role in overseeing management and eschew risky decisions that threaten the well-being of a company to avoid losing their investments. Given the dynamic …


Expert Evidence: The Gatekeeper Role Of Justice, Victor E. Schwartz Dec 2023

Expert Evidence: The Gatekeeper Role Of Justice, Victor E. Schwartz

Brooklyn Journal of Corporate, Financial & Commercial Law

No abstract provided.


The Constitutional Claim To Individuation In Tort — A Tale Of Two Centuries, Part 2, Douglas A. Kysar Dec 2023

The Constitutional Claim To Individuation In Tort — A Tale Of Two Centuries, Part 2, Douglas A. Kysar

Brooklyn Journal of Corporate, Financial & Commercial Law

This Article—drafted to honor Professor Aaron Twerski on the occasion of his festschrift at Brooklyn Law School—draws inspiration from his classic 1989 article on market share liability. In that article, Professor Twerski observed that doctrinal confusions in market share liability arose from judges who “had their feet firmly planted in two different centuries—one foot in the nineteenth century and the other in the twenty-first century.” This Article takes inspiration from Twerski’s “two centuries” metaphor to examine the rise of constitutional objections by defendants to certain doctrinal innovations that attempt to adapt tort law to modern ways of causing, identifying, and …


Commercial Law Harmonization: The Role Of The United States, Hal Burman May 2023

Commercial Law Harmonization: The Role Of The United States, Hal Burman

Brooklyn Journal of Corporate, Financial & Commercial Law

The modern field of transnational commercial law harmonization began in the United States in the mid-1960s; the international basis of that began in the mid-1940s. Before that, a limited number of areas of private international law (PIL) had active participation of US interests, such as maritime law. US participation internationally effectively began in the middle 1960s. Developments parallel to commercial law have been significant in the areas of applicable law, jurisdiction, commercial arbitration, family law, and other fields – all important areas of transnational law, but beyond the scope of this symposium. Each of these areas of law, while affecting …


Limiting 28 U.S.C. § 1782: A Changed Landscape For Discovery In Private Commercial Arbitration Abroad, Jazmyne R. Barto May 2023

Limiting 28 U.S.C. § 1782: A Changed Landscape For Discovery In Private Commercial Arbitration Abroad, Jazmyne R. Barto

Brooklyn Journal of Corporate, Financial & Commercial Law

For decades 28 U.S.C. § 1782 has been used by foreign entities looking to compel discovery in the United States for use in commercial arbitration proceedings abroad. Despite the statute being in force since 1948, many federal courts were unsure of whether § 1782 could actually be used in international private commercial arbitration. The Supreme Court tried and failed to clarify the statute’s scope in 2004, leading to a circuit court split as to §1782’s applicability. Looking to end the controversy once and for all, during the Summer of 2022, the Supreme Court clearly stated that § 1782 might not …


Part Ii: Commercial Law Harmonization: The Past As Prologue—A “Festschrift” In Honor Of Neil B. Cohen, Edward J. Janger May 2023

Part Ii: Commercial Law Harmonization: The Past As Prologue—A “Festschrift” In Honor Of Neil B. Cohen, Edward J. Janger

Brooklyn Journal of Corporate, Financial & Commercial Law

No abstract provided.