Law Commons^™

Medical Malpractice Reform: What Works And What Doesn't, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

Concerns with medical malpractice liability costs have been a principal factor leading states to adopt a series of tort liability reforms. Medical malpractice premiums have been declining, creating less of a cost-based impetus for additional reforms. The most consistent empirical evidence indicating statistically significant effects of medical malpractice reforms has been for caps on non-economic damages. Damages caps reduce insurance losses and foster insurer profitability, consistent with the objective of caps. The impacts of caps are greatest for insurance companies that otherwise would have experienced the greatest losses in the state. However, caps may reduce payouts to plaintiffs, potentially reducing …

Do Payday Loans Cause Bankruptcy?, Paige M. Skiba, Jeremy Tobacman

Vanderbilt Law School Faculty Publications

An estimated ten million American households borrow on payday loans each year. Despite the prevalence of these loans, little is known about the effects of access to this form of short-term, high-cost credit. We match individual-level administrative records on payday borrowing to public records on personal bankruptcy, and we exploit a regression discontinuity to estimate the causal impact of access to payday loans on bankruptcy filings. Though the size of the typical payday loan is only $300, we find that loan approval for first-time applicants increases the two-year Chapter 13 bankruptcy filing rate by 2.48 percentage points. There appear to …

Executive Compensation In The Charitable Sector: Beyond The Tax Cuts And Jobs Act, Lauren Rogal

Vanderbilt Law School Faculty Publications

The Tax Cuts and Jobs Act of 2017 (“TCJA”) reformed charity executive compensation for the first time in decades, introducing an across-the-board excise tax on compensation over $1 million.1 Its enactment represents a significant step toward securing accountability for the use of the charitable tax exemption under Section 501(c)(3) of the Internal Revenue Code. These organizations receive preferential tax treatment to subsidize their provision of socially beneficial outputs that would otherwise be undersupplied. Overcompensation of charity executives subverts this purpose by diverting those subsidies for private gain and undermining public confidence in the charitable sector.

With the enactment of the …

Risk Guideposts For A Safer Society: Introduction And Overview, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

This symposium issue of the Journal of Risk and Uncertainty addresses wide-ranging policy issues pertaining to risk regulation and the economic underpinnings of these efforts. One such intervention consists of policies to address informational market failures. Whether new information has a positive value is less obvious than economists often assume. When more stringent regulations are required, the structure and evaluation of these efforts often hinges on the value of a statistical life, or the VSL. This symposium reports estimates of the utility functions that generate these local risk-money tradeoffs as well as new estimates of the VSL using both stated-preference …

Guarantor Of Last Resort: Is There A Better Alternative?, Morgan Ricks

Vanderbilt Law School Faculty Publications

What should the government’s financial-crisis-response toolkit consist of? How should we think about its optimal scope and design? In Kate Judge offers a novel perspective on these questions. At a high level she agrees with Summers, Bernanke, Paulson, and Geithner that the existing toolkit is inadequate. In this respect she joins a number of other legal scholars and commentators. . .

The day after Lehman’s bankruptcy, Ken Rogoff—among the world’s leading experts on financial crises—wrote an op-ed titled “No More Creampuffs.” He applauded regulators for letting Lehman fail and “forc[ing] some discipline onto the system.” (To be fair, Rogoff acknowledged …

Reconceptualizing The Role Of Intellectual Property Rights In Shaping Industry Structure, Peter Lee

Vanderbilt Law Review

Technological and creative industries are critical to economic and social welfare, and the forces that shape such industries are important subjects of legal and policy examination. These industries depend on patents and copyrights, and scholars have long debated whether exclusive rights promote industry consolidation (by shoring up barriers to entry) or fragmentation (by promoting entry of new firms). Much hangs in the balance, for the structure of these IP- intensive industries can determine the amount, variety, and quality of drugs, food, software, movies, music, and books available to society. This Article reconceptualizes the role of patents and copyrights in shaping …

The Authorization Continuum: Investigating The Meaning Of "Authorization" Through The Lens Of The Controlled Substances Act, Breanna C. Philips

Vanderbilt Law Review

Federal prohibitions are ubiquitous in society. These prohibitions may be absolute, providing no exceptions, or they may be qualified, providing exemptions that allow specified parties to avoid a law's reach. The power to exempt parties from a prohibition is not limited to the federal government; it may be delegated to states or smaller polities as well. This is the structure that Congress employed when enacting the Mail Order Drug Paraphernalia Control Act: the Act bans, among other things, the sale and distribution of drug paraphernalia but provides an exemption for "any person authorized by local, State, or Federal law."

While …

Winding Back "Wayfair": Retaining The Physical Presence Rule For State Income Taxation, Nathan Townsend

Vanderbilt Law Review

In 2018, the U.S. Supreme Court decided South Dakota v. Wayfair, Inc., a case abrogating the physical presence rule from Quill Corp. v. North Dakota. The physical presence rule barred a state from forcing a retailer to collect sales taxes on the state's behalf if the retailer lacked a physical presence within the state. The decision came after a decades-long effort by the states to reach sales-tax revenue effectively pushed beyond their reach by the physical presence rule. While enabling states to reach a new revenue source, the Court failed to take full account of the reliance interests dependent on …

Public Relations Litigation, Kishanthi Parella

Vanderbilt Law Review

Conventional wisdom holds that lawsuits harm a corporation's reputation. So why do corporations and other businesses litigate even when they will likely lose in the court of law and the court of public opinion? One explanation is settlement: some parties file lawsuits not to win but to force the defendant to pay out. But some business litigants defy even this explanation; they do not expect to win the lawsuit or to benefit financially from settlement. What explains their behavior?

The answer is reputation. This Article explains that certain types of litigation can improve a business litigant's reputation in the eyes …

The Arbitration-Litigation Paradox, Pamela K. Bookman

Vanderbilt Law Review

The Supreme Court's interpretation of the Federal Arbitration Act is universally touted as favoring arbitration. Its arbitration cases and decisions in other areas are also viewed as supporting the Court's more general hostility to litigation. These pro-arbitration and anti-litigation policies can be mutually reinforcing. Moreover, they appear to be mutually consistent, in part because the Court describes the essential features of arbitration as being "informal," "speedy," "efficient"-in short, the categorical opposite of litigation.

This Article contends that the Court's approach is not as "pro- arbitration" as it appears. On the contrary, the Court's pro-arbitration and anti- litigation values sometimes conflict. …

David Williams Ii, "In Memoriam" 1948-2019, Nicholas S. Zeppos

Vanderbilt Law Review

On February 15, 2019, hundreds of people gathered at the Temple Church in Nashville to celebrate the life and impact of David Williams II.

Exploring The Interfaces Between Big Data And Intellectual Property Law, Daniel J. Gervais

Vanderbilt Law School Faculty Publications

This article reviews the application of several IP rights (copyright, patent, sui generis database right, data exclusivity and trade secret) to Big Data. Beyond the protection of software used to collect and process Big Data corpora, copyright’s traditional role is challenged by the relatively unstructured nature of the non-relational (noSQL) databases typical of Big Data corpora. This also impacts the application of the EU sui generis right in databases. Misappropriation (tort-based) or anti-parasitic behaviour protection might apply, where available, to data generated by AI systems that has high but short-lived value. Copyright in material contained in Big Data corpora must …

Standing For Nothing, Robert A. Mikos

Vanderbilt Law School Faculty Publications

A growing number of courts and commentators have suggested that states have Article III standing to protect state law. Proponents of such "protective" standing argue that states must be given access to federal court whenever their laws are threatened. Absent such access, they claim, many state laws might prove toothless, thereby undermining the value of the states in our federal system. Furthermore, proponents insist that this form of special solicitude is very limited-that it opens the doors to the federal courthouses a crack but does not swing them wide open. This Essay, however, contests both of these claims, and thus, …

Beyond The Witness: Bringing A Process Perspective, Edward K. Cheng, G. Alexander Nunn

Vanderbilt Law School Faculty Publications

For centuries, the foundation of the Anglo-American trial has been the witness.' Witnesses report on their personal observations, provide opinions of character, offer scientific explanations, and in the case of parties, narrate their own story. Indeed, even for documentary and other physical evidence, witnesses often provide the conduit through which such evidence reaches the factfinder. Documentary or physical evidence rarely stands on its own. The law of evidence has thus unsurprisingly focused on-or perhaps obsessed over-witnesses. The hearsay rule and the Confrontation Clause demand that declarants be available witnesses at trial so that they may be subject to cross-examination.' Expert …

Divergence In Land Use Regulations And Property Rights, Christopher Serkin

Vanderbilt Law School Faculty Publications

For the past century, property rights-and in particular development rights-have been circumscribed and largely defined by comprehensive local land use regulations. As any student of land use knows, zoning across the country shares a common DNA. Despite their local character, zoning limits on development rights in almost every American jurisdiction share a deep family resemblance borne from their common origin in the Standard Zoning Enabling Act ("SZEA"). Zoning for much of the twentieth century therefore converged around a core goal of separating incompatible uses of land as a kind of ex ante nuisance prevention. Of course, zoning went much farther …

Utility Functions For Mild And Severe Health Risks, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

This article reviews economic evidence on health-dependent utility functions and presents new estimates of utility functions for cancer. Estimates of health-dependent utility functions have found that mild adverse health impacts can be treated as monetary equivalents. Severe health consequences also reduce utility levels but have an additional effect of altering the structure of utility functions by reducing the marginal utility of income. The implications of past studies are often misleading when they fail to account for income losses and medical expenses associated with serious ailments. This article’s estimates of the structure of utility functions for cancer indicate a substantially lower …

Merger Negotiations In The Shadow Of Judicial Appraisal, Brian Broughman, Audra Boone, Antonio Macias

Vanderbilt Law School Faculty Publications

The recent surge in appraisal litigation has sparked debate over the desirability of appraisal and how this remedy should be structured. Much of this debate is based on untested assertions about appraisal's ex ante effect on the structure and pricing of takeovers. Systematically investigating this effect, we find evidence that target shareholders receive higher abnormal returns as the strength of the appraisal remedy increases. We find no evidence that bidders offer a lower up- front price as a means to pay off dissenting shareholders after a sale. Further- more, threat of appraisal does not appear to limit takeover activity or …

The Power Of Prosecutors, Jeffrey Bellin

Vanderbilt Law School Faculty Publications

One of the predominant themes in the criminal justice literature is that prosecutors dominate the justice system. Over seventy-five years ago, Attorney General Robert Jackson famously proclaimed that the "prosecutor has more control over life, liberty, and reputation than any other person in America." In one of the most cited law review articles of all time, Bill Stuntz added that prosecutors-not legislators, judges, or police-"are the criminal justice system's real lawmakers." And an unchallenged modern consensus holds that prosecutors "rule the criminal justice system." This Article applies a critical lens to longstanding claims of prosecutorial preemi- nence. It reveals a …

Presidential Factfinding, Shalev Roisman

Vanderbilt Law Review

The modern President possesses enormous power. She can use military force abroad without congressional authorization, impose economic sanctions on foreign powers, or enter into trade agreements with foreign states. She can do all this on her own, with little constraint. Or so it seems. In reality, these important powers, along with numerous more mundane ones, are all contingent on the President first making certain factual determinations. For example, to use force abroad, the President must first determine that the use of force is in the "national interest," perhaps that it will preserve "regional stability" or protect American lives. To impose …

Irrational Ignorance At The Patent Office, Michael D. Frakes, Melissa F. Wasserman

Vanderbilt Law Review

The principal task of the U.S. Patent & Trademark Office ("Patent Office" or "Agency") is to determine whether an invention merits a reward of a patent.' There is growing consensus that the Patent Office is failing at this task. Many believe that the Agency allows too many "bad" patents that unnecessarily drain consumer welfare, stunt productive research, and unreasonably extract rents from innovators. The Patent Office's overgranting tendencies have been the subject of multiple reports by the National Academies and the Federal Trade Commission. Patent quality concerns have energized the Supreme Court into taking a renewed interest in substantive patent …

The Better Way To Stop Delay: Analyzing Speedy Sentencing Claims In The Wake Of "Betterman V. Montana", Sarah R. Grimsdale

Vanderbilt Law Review

In Betterman v. Montana, the U.S. Supreme Court held that the Sixth Amendment's speedy trial right terminates after a defendant's conviction. In dicta, the Court suggested that a defendant might pursue a constitutional claim of undue sentencing delay under the Due Process Clause. Lower courts have generally embraced this suggestion. Still, the Betterman Court's limited holding left certain questions open: What analytical framework is appropriate to address due process claims of delay between conviction and sentencing? And if a court finds that sentencing was unduly delayed, what is the proper relief?

After Betterman, some courts have analyzed postconviction delay using …

Incapacitating Criminal Corporations, W. Robert Thomas

Vanderbilt Law Review

If there is any consensus in the fractious debates over corporate punishment, it is this: a corporation cannot be imprisoned, incarcerated, jailed, or otherwise locked up. Whatever fiction the criminal law entertains about corporate personhood, having a physical "body to kick"-and, by extension, a body to throw into prison-is not one of them. The ambition of this project is not to reject this obvious point but rather to challenge the less-obvious claim it has come to represent: incapacitation, despite long being a textbook justification for punishing individuals, does not bear on the criminal law of corporations.

This Article argues that …

Sunny And Share: Balancing Airspace Entitlement Rights Between Solar Energy Adopters And Their Neighbors, Joshua B. Landis

Vanderbilt Law Review

In an effort to ameliorate the effects of climate change, state and local governments have made increasingly large commitments to support solar energy adoption. For solar investments to be successful, however, solar adopters require unobstructed access to sunlight, which is directly at odds with the interests of neighbors and developers who value vertical development, especially in urban centers. To mitigate these looming conflicts, governments have enacted a variety of laws that assign airspace entitlements to either solar adopters or their neighbors. Unfortunately, these solutions are all poorly tailored for dense cities, which is where future airspace conflict is likely to …

Law And Neighborhood Names, Nestor M. Davidson, David Fagundes

Vanderbilt Law Review

This Article provides a novel investigation of how law both enables and constrains the ability of city residents to claim, name, and often rename their neighborhoods. A rich interdisciplinary dialogue in fields such as geography and sociology has emerged on the significance of place names, but this literature has largely ignored the legal dimensions of the phenomenon and its implications for urban governance, belonging, and community conflict. This Article's empirical exploration of the role of law in change and conflict regarding neighborhood identity thus advances the discourse both for legal scholars focused on urban dynamics and across disciplines.

From gentrification …

Revolving Elites: The Unexplored Risk Of Capturing The Sec, Randall S. Thomas, James D. Cox

Vanderbilt Law School Faculty Publications

Fears have abounded for years that the sweet spot for capture of regulatory agencies is the “revolving door” whereby civil servants migrate from their roles as regulators to private industry. Recent scholarship on this topic has examined whether America’s watchdog for securities markets, the Securities and Exchange Commission (“SEC”), is hobbled by the long-standing practices of its enforcement staff exiting their jobs at the Commission and migrating to lucrative private sector employment where they represent those they once regulated. The research to date has been inconclusive whether staff revolving door practices have weakened the SEC’s verve. In this paper, we …

Trade And The Separation Of Powers, Timothy Meyer, Ganesh Sitaraman

Vanderbilt Law School Faculty Publications

There are two paradigms through which to view trade law and policy within the American constitutional system. One paradigm sees trade law and policy as quintessentially about domestic economic policy. Institutionally, under the domestic economics paradigm, trade law falls within the province of Congress, which has legion Article I authorities over commercial matters. The second paradigm sees trade law as fundamentally about America’s relationship with foreign countries. Institutionally, under the foreign affairs paradigm, trade law is the province of the President, who speaks for the United States in foreign affairs. While both paradigms have operated throughout American history, the domestic …

Will Tenure Voting Give Corporate Managers Lifetime Tenure?, Paul H. Edelman, Randall S. Thomas, Wei Jiang

Vanderbilt Law School Faculty Publications

Dual-class voting systems have been widely employed in recent initial public offerings by large tech companies, but have been roundly condemned by institutional investors and the S&P 500. As an alternative, commentators have proposed adoption of tenure voting systems, where investor voting rights increase with the length of time that they hold shares. In furtherance of this proposal, some Silicon Valley investors have requested that the SEC permit the creation of a new stock exchange where all of the companies will be required to use tenure voting systems.

Is tenure voting a better choice than dual-class stock for both corporate …

Settling In The Shadow Of Sex: Gender Bias In Marital Asset Division, Jennifer Bennett Shinall

Vanderbilt Law School Faculty Publications

Divorce has a long history of economically disempowering women. From the time of coverture to the era of modern divorce reform, women have been persistently disadvantaged by divorce relative to men. Family law scholars have long attributed this disadvantage to the continued prevalence of traditional gender roles and the failure of current marital asset division laws to account adequately for this prevalence. In spite of the progress made by the women's movement over the past half-century, married, heterosexual women endure as the primary caretaker in the majority of households, and married, heterosexual men endure as the primary breadwinners. Undoubtedly, women …

Sharkfests And Databases: Crowdsourcing Plea Bargains, Nancy J. King, Kay L. Levine, Ronald F. Wright, Marc L. Miller

Vanderbilt Law School Faculty Publications

The stock image of a plea negotiation in a criminal case depicts two lawyers in frayed business suits, meeting one-on-one in a dim corner of a courtroom lobby. The defendant is somewhere nearby, ready to receive information about the prosecutor’s offer and to discuss counteroffers with his attorney and perhaps with his family. The victim or arresting officer may be available by phone, although neither has the power to veto a deal the prosecutor otherwise thinks is reasonable. In this depiction of plea bargaining, the defense attorney and the defendant form one unit, allied against another unit—comprised of the prosecutor, …

Why Are Seemingly Satisfied Female Lawyers Running For The Exits? Resolving The Paradox Using National Data, Joni Hersch, Erin E. Meyers

Vanderbilt Law School Faculty Publications

Despite the fact that women are leaving the practice of law at alarmingly high rates, most previous research finds no evidence of gender differences in job satisfaction among lawyers. This Article uses nationally representative data from the 2015 National Survey of College Graduates to examine gender differences in lawyers’ job satisfaction, and finds that any apparent similarity of job satisfaction between genders likely arises from dissatisfied female JDs sorting out of the legal profession at higher rates than their male counterparts, leaving behind the most satisfied women. This Article also provides a detailed examination of the specific working conditions that …