Law Commons^™

Strange Bedfellows: The Federal Constitution, Out-Of-State Nongrantor Accumulation Trusts, And The Complete Avoidance Of State Income Taxation, Jeffrey Schoenblum

Vanderbilt Law Review

With the maximum rate of federal income tax at 39.6 percent, the Medicare surtax on investment income of 3.8 percent, and some state income tax rates exceeding 9 percent, taxpayers in the highest brackets have been seeking to develop strategies to lessen the tax burden. One strategy that has been receiving increased attention is the use of a highly specialized trust known as the NING, a Nevada incomplete gift nongrantor trust, which eliminates state income taxation of investment income altogether without generating additional federal income or transfer taxes. A major obstacle standing in the way of accomplishing this objective, however, …

The Language Of Mens Rea, Matthew R. Ginther, Francis X. Shen, Richard J. Bonnie, Morris B. Hoffman, Owen D. Jones, Rene Marois, Kenneth W. Simons

Vanderbilt Law Review

To be guilty of a crime, generally one must commit a bad act while in a culpable state of mind. But the language used to define, partition, and communicate the variety of culpable mental states (in Latin, mens rea) is crucially important. For depending on the mental state that juries attribute to him, a defendant can be convicted-for the very same act and the very same consequence-of different crimes, each with different sentences.

The influential Model Penal Code ("MPC") of 1962 divided culpable mental states into four now-familiar kinds: purposeful, knowing, reckless, and negligent.' Both before the MPC and since, …

Regulation By Hypothetical, Mehrsa Baradaran

Vanderbilt Law Review

A new paradigm is afoot in banking regulation-and it involves a turn toward the more speculative. Previous regulatory instruments have included geographic restrictions, activity restrictions, disclosure mandates, capital requirements, and risk management oversight to ensure the safety of the banking system. This Article describes and contextualizes these regulatory tools and shows how and why they were formed to deal with industry change. The financial crisis of 2008 exposed the shortcomings in each of these regimes. In important ways, the Wall Street Reform and Consumer Protection Act of 2010 ('Dodd-Frank') departs from these past regimes and proposes something new: Call it …

Trademarked For Death? A Licensee's Trademark Rights After An Executory Contract Is Rejected In Bankruptcy, Philip L. Lu

Vanderbilt Law Review

In 1872, a young man named Claudio Alvarez Lefebre began manufacturing and selling high-quality rum in Cuba under the brand name "Ron Matusalem." In 1948, as the family-run business prospered, the company registered a trademark and corporate logo in the United States. Upon his death, Lefebre left the business-and the secret formulas for making his rum-to his wife and children. By the early 1960s, Lefebre's wife and children had immigrated to the United States, and they split the rum-making business into two separate corporations. These two distinct entities negotiated an executory contract in the form of a franchise agreement with …

Speech Beyond Borders: Extraterritoriality And The First Amendment, Anna Su

Vanderbilt Law Review

Does the First Amendment follow the flag? In Boumediene v. Bush, the Supreme Court categorically rejected the claim that constitutional rights do not apply at all to governmental actions taken against aliens located abroad. Instead, the Court made the application of such rights, the First Amendment presumably included, contingent on "objective factors and practical concerns." In addition, by affirming previous decisions, Boumediene also extended its functional test to cover even U.S. citizens, leaving them in a situation where they might be without any constitutional recourse for violations of their First Amendment rights. But lower courts have found in the recent …

Confrontation And The Law Of Evidence: Can The Language Conduit Theory Survive In The Wake Of Crawford?, Tom S. Xu

Vanderbilt Law Review

A foreign traveler flies into John F. Kennedy International Airport, supposedly on a business trip. At the airport, a customs inspector detains him after discovering what appear to be bags of cocaine concealed in his luggage. The traveler speaks limited English, so the inspector requests the aid of a certified government interpreter to question him. An English-speaking Drug Enforcement Administration ("DEA") agent thereafter interrogates the traveler by having the interpreter translate his questions to Spanish, the traveler's native tongue. The interpreter then translates the traveler's responses from Spanish to English, and the inspector records the translated responses. At trial, the …

Keep Your Friends Close: A Framework For Addressing Rights To Social Media Contacts, Courtney J. Mitchel

Vanderbilt Law Review

A group of entrepreneurial recent college graduates starts a tutoring and test prep company focused on helping promising high school students get an edge on their college applications. Since the cost of print advertising exceeds the group's budget, they each actively promote the business on their personal social media accounts, garnering their first clients. They also create company accounts on Facebook, Linkedln, and Twitter, which clients join for easy, direct communication and quick access to information. Though all the founders contribute occasional posts and encourage their personal social media contacts to join the company accounts, one eventually becomes, in practice …

Is Finra A State Actor? A Question That Exposes The Flaws Of The State Action Doctrine And Suggests A Way To Redeem It, Michael Deshmukh

Vanderbilt Law Review

For over seventy years, the National Association of Securities Dealers ("NASD") was the principal self-regulatory organization ("SRO") responsible for the regulation and oversight of the U.S. securities market.' In 2000, working with the Securities and Exchange Commission ("SEC") and the New York Stock Exchange ("NYSE"), the NASD initiated a joint investigation into twelve investment firms that were allegedly "spinning" initial public, offerings. This sort of regulatory interplay between the NASD and the NYSE governed the industry until 2008, when self-regulatory power was further consolidated by a merger between the NASD and the regulatory arm of the NYSE. The resulting organization, …

Enjoining Abuse: The Case For Indefinite Domestic Violence Protection Orders, Jane K. Stoever

Vanderbilt Law Review

While countless studies demonstrate the complex and dangerous nature of intimate partner abuse, most jurisdictions permit only the entry of yearlong domestic violence protection orders. Judges may assume that danger ceases once the order takes effect, but evidence of the recurrent nature of violence demonstrates the importance of providing judicial protection over time. The brevity of domestic violence protection orders stands in stark contrast to the long duration of orders in other areas of the law, such as intellectual property, corporations, real property, and tax, where courts routinely enter permanent injunctions to protect individuals and businesses against "irreparable harm." What …

Making Or Breaking Your Billion Dollar Case: U.S. Judicial Assistance To Private International Arbitration Under 28 U.S.C. 1732(A), Laura E. Malament

Vanderbilt Law Review

With the increasingly globalized economy, arbitration is becoming a popular mechanism for resolving disputes. The total value of international arbitration claims grew over one hundred percent in 2012, from $96 billion in 2011 to $206 billion in 2012. The principal users of international arbitration are corporations. In fact, for the shipping, energy, oil and gas, and insurance industries, international arbitration of multi-billion dollar disputes is the "default resolution mechanism." Across all industries, approximately ninety percent of international contracts include an arbitration clause. Importantly, seventy-four percent of international arbitration proceedings involve exclusively private parties-no state entities are parties to the dispute.

Sticky Arbitration Clauses - The Use Of Arbitration Clauses After Concepcion And Amex, Peter B. Rutledge, Christopher R. Drahozal

Vanderbilt Law Review

We present the results of the first empirical study of the extent to which businesses have switched to arbitration after AT&T Mobility LLC v. Concepcion. The Supreme Court's decision in Concepcion led commentators to predict that every business soon would use an arbitration clause, coupled with a class arbitration waiver, in their standard form contracts to avoid the risk of class actions. We examine two samples of franchise agreements: one sample in which we track changes in arbitration clauses since 1999, and a broader sample focusing on changes since 2011, immediately before Concepcion was decided. Our central finding is consistent …

In Defense Of American Criminal Justice, J. H. Wilkinson, Iii

Vanderbilt Law Review

The American criminal justice system is on trial. A chorus of commentators-often but not exclusively in the legal academy-has leveled a sharp indictment of criminal process in our country. The indictment charges that large flaws infect nearly every stage of the adjudicatory process. And the prescriptions are equally far-reaching, with calls for abolition of many current practices and an overhaul of the entire system. What is more, the critics issue their condemnations essentially as givens, often claiming that all reasonable people could not help but agree that fair treatment of the accused has been fatally compromised. For these critics, "We …

The Case For A Market In Debt Governance, Yesha Yadav

Vanderbilt Law Review

Scholars have long lamented that the growth of modern finance has given way to a decline in debt governance. According to current theory, the expansive use of derivatives that enable lenders to trade away the default risk of their loans has made these lenders uninterested, even reckless, when it comes to exercising creditor discipline. In contrast to current theory, this Article argues that such derivatives can prove a positive and powerful influence in debt governance. Theory has overlooked those who sell credit protection to lenders and assume default risk on the borrower. These protection sellers are left holding the economic …

Prisoners And Habeas Privileges Under The Fourteenth Amendment, Lee Kovarsky

Vanderbilt Law Review

The U.S. Reports contain no answer to a million-dollar question: are state prisoners constitutionally entitled to a federal habeas forum? The Supreme Court has consistently ducked the basic constitutional issue, and academic work on the question idles on familiar themes. The strongest existing argument that state prisoners are constitutionally entitled to a federal habeas forum involves a theory of incorporation under the Fourteenth Amendment's Due Process Clause. I provide a new and different account: specifically, that the Fourteenth Amendment's Privileges and Immunities Clause ("PI Clause") guarantees a habeas privilege as a feature of national citizenship, and that the corresponding habeas …

Enforcement Discretion And Executive Duty, Zachary S. Price

Vanderbilt Law Review

Recent Presidents have claimed wide-ranging authority to decline enforcement of federal laws. The Obama Administration, for example, has announced policies of abstaining from investigation and prosecution of certain federal marijuana crimes, postponing enforcement of key provisions of the Affordable Care Act, and suspending enforcement of removal statutes against certain undocumented immigrants. While these examples highlight how exercises of executive enforcement discretion-the authority to turn a blind eye to legal violations-may effectively reshape federal policy, prior scholarship has offered no satisfactory account of the proper scope of, and constitutional basis for, this putative executive authority. This Article fills that gap. Through …

The Obligation Of Members Of Congress To Consider Constitutionality While Deliberating And Voting: The Deficiencies Of House Rule Xii And A Proposed Rule For The Senate, Russ Feingold

Vanderbilt Law Review

Most scholarly attention on constitutional interpretation is focused on the judicial branch and its role in our system of separation of powers. Nonetheless, constitutional interpretation should not take place solely in the courts. Rather, history suggests our Framers envisioned that members of Congress, as well as the President and the courts, would have an independent and important role to play in interpreting our Constitution. Yet this obligation has eroded such that House Speaker John Boehner, with the support of the Tea Party and his Republican colleagues, called for a "sea change" in the way the House of Representatives operates, with …

Save Now, Win Later: Removing Statutory Barriers To Prize-Linked Savings Initiatives, Ann E. Watford

Vanderbilt Law Review

In February of 2010, Billie June Smith received exciting news. As the lucky winner of a statewide drawing, this elderly woman was awarded a giant check for $100,000. Billie June's good fortune cost her nothing, for she did not spend any money on the winning ticket. Instead, she became eligible for the grand prize when she decided to save for her retirement at her local credit union. Billie June was the inaugural grand-prize winner of "Save to Win," an innovative pilot program that launched in 2009 to test a concept known as prize-linked savings. In partnership with the nonprofit Doorways …

Tentative Interpretations: The Abracadabra Of Administrative Rulemaking And The End Of 'Alaska Hunters', Matthew P. Downer

Vanderbilt Law Review

Agency flexibility is a battlefield. When circumstances change or a new regime takes power, federal agencies often adjust their settled regulations to reflect new realities. There is a persistent struggle, however, between preserving this flexibility and protecting those who relied upon the previous regulations.' When an agency changes course, regulated entities must comply, often with little warning and at great expense. In 1946, Congress passed the Administrative Procedure Act ("APA") to balance these interests by restricting when and how agencies can promulgate and change regulations.

Unsurprisingly, the APA did not achieve a lasting d6tente. Instead, it merely created new fronts …

Bond, Buckley, And The Boundaries Of Separation Of Powers Standing, William Marks

Vanderbilt Law Review

A constitutional crisis is at hand. It is 2017, and a new President of the United States has taken office.' The new President generally opposes environmental regulations and accordingly nominated a candidate for Administrator of the Environmental Protection Agency ("EPA") with a deregulatory track record. The Senate, however, stood in the way: a proenvironment party holds the majority and threatened to filibuster. New presidents in this situation typically withdraw their nominations to avoid political embarrassment. But this time was different. In a forceful display of executive authority, the President unilaterally installed the nominee as the EPA Administrator. True, this action …

Getting To The (Non) Point: Private Governance As A Solution To Nonpoint Source Pollution, Kyle W. Robisch

Vanderbilt Law Review

Chances are that today you have already unwittingly advanced the slow but steady demise of America's freshwater supply. The sausage and egg biscuit you ate for breakfast, the half-empty bottle of Drano you dumped into your backyard, and the quick trip to the grocery store-these seemingly innocent actions each significantly degrade American watersheds.' In response to this systemic and persistent assault on water quality, Congress enacted the Federal Water Pollution Control Act of 1972. More commonly known as the Clean Water Act ("CWA"), this legislation attempted to take an aggressive and comprehensive approach to improving water quality. To achieve its …

Against Settlement Of (Some) Patent Cases, Megan M. La Belle

Vanderbilt Law Review

For decades now, there has been a pronounced trend in civil litigation away from adjudication and toward settlement. This settlement phenomenon has spawned a vast critical literature beginning with Owen Fiss's seminal work, Against Settlement. Fiss opposes settlement because it achieves peace rather than justice, and because settlements often are coerced due to power and resource imbalances between the parties. Other critics have questioned the role that courts play (or ought to play) in settlement proceedings and have argued that the secondary effects of settlement -especially the lack of decisional law-are damaging to our judicial system. Still, despite these criticisms, …

Immunity Games: How The State Department Has Provided Courts With A Post-Samantar Framework For Determining Foreign Official Immunity, Erica E. Smith

Vanderbilt Law Review

In 2010, the Supreme Court ruled in Samantar v. Yousuf that the Foreign Sovereign Immunities Act ("FSIA") does not govern the application or determination of foreign official immunity.' Instead, the Court found that the immunity of foreign officials was "properly governed by the common law."2 While the Court failed to explicitly define these common-law principles, it did note that the State Department would play a role in individual official immunity determinations.3 In the years since, the State Department has done just that. Through officially submitted Suggestions of Immunity and Statements of Interest, the State Department has rejuvenated its standards for …

The Supercharged Ipo, Victor Fleischer, Nancy Staudt

Vanderbilt Law Review

A new innovation on the IPO landscape has emerged in the last two decades, allowing owner-founders to extract billions of dollars from newly public companies. These IPOs-labeled supercharged IPOs-have been the subject of widespread debate and controversy: lawyers, financial experts, journalists, and members of Congress have all weighed in on the topic. Some have argued that supercharged IPOs are "brilliant, just brilliant," while others have labeled them "underhanded" and "bizarre."

In this Article, we explore the supercharged IPO and explain how and why this new deal structure differs from the more traditional IPO. We then outline various theories of financial …

States, Agencies, And Legitimacy, Miriam Seifter

Vanderbilt Law Review

Scholarship on the administrative process has scarcely attended to the role that states play in federal regulation. This Article argues that it is time for that to change. An emerging, important new strand of federalism scholarship, known as "administrative federalism," now seeks to safeguard state interests in the administrative process and argues that federal agencies should consider state input when developing regulations. These ideas appear to be gaining traction in practice. States now possess privileged access to agency decisionmaking processes through a variety of formal and informal channels. And some courts have signaled support for the idea of a special …

The Right To Vote Under State Constitutions, Joshua A. Douglas

Vanderbilt Law Review

This Article provides the first comprehensive look at state constitutional provisions explicitly granting the right to vote. We hear that the right to vote is "fundamental," the "essence of a democratic society," and "preservative of all rights." But courts and scholars are still searching for a solution to the puzzle of how best to protect voting rights, especially because the U.S. Supreme Court has underenforced the right to vote. The answer, however, is right in front of us: state constitutions. Virtually every state constitution includes direct, explicit language granting the right to vote, as contrasted with the U.S. Constitution, which …

Multiple-Agency Delegations & One-Agency Chevron, William Weaver

Vanderbilt Law Review

Congress frequently delegates to agencies, and a host of Supreme Court decisions have articulated tests for determining what level of deference courts should give to agency interpretations of their statutory directives. Courts have historically undertaken these analyses in the context of a single agency. Congressional authorization of joint rulemaking authority is more complicated, however, and the traditional frameworks for review are inadequate.

When Congress delegates authority to multiple agencies, courts should review the agencies' rules with heightened deference. The traditional framework for judicial review of agency rules is ill equipped when rules are promulgated by multiple coordinated agencies. The prevalence …

Uncovering The Silent Victims Of The American Medical Liability System, Joanna Shepherd

Vanderbilt Law Review

A frequently overlooked problem with the current medical liability system is the vast number of medical errors that go uncompensated. Although studies indicate that 1% of hospital patients are victims of medical negligence, fewer than 2% of these injured patients file claims. In this Article, I explain that many victims of medical malpractice do not file claims because they are unable to find attorneys willing to take their cases. I conducted the first national survey of attorneys to explore medical malpractice victims' access to the civil justice system. The results from the survey indicate that the economic reality of litigation …

Delimiting Title Vii: Reverse Religious Discrimination And Proxy Claims In Employment Discrimination Litigation, Andrea J. Sinclair

Vanderbilt Law Review

In July 2012, Chick-fil-A President and Chief Operating Officer Dan Cathy remarked to a religious publication that he and his company supported the "biblical definition of the family unit."' Chick- fil-A is popularly known as a Christian company that promotes conservative, biblical values. Mr. Cathy's statement was largely interpreted by the media as an "anti-gay" sentiment rooted in religious beliefs. In response to Mr. Cathy's remark, government officials from Boston and Chicago refused to allow the restaurant chain to open new locations in their cities, citing the organization's official policy of "discrimination." The Chick-fil-A controversy demonstrates how the intersection of …

Toward A Definitive History Of Griggs V. Duke Power Co., David J. Garrow

Vanderbilt Law Review

When Griggs v. Duke Power Co. was unanimously handed down by the U.S. Supreme Court on March 8, 1971, the decision did not draw prominent headlines. The New York Times accorded the ruling only a two-sentence summary on page twenty-one, and the Wall Street Journal gave it modest attention on page four. The Washington Post did give the decision front-page coverage, but Gillette v. United States, a Selective Service Act case, was awarded a prominent, top-of-the-page, two-column headline while Griggs received secondary attention. Notwithstanding how modest the contemporaneous news coverage was, knowledgeable judges, scholars, and litigators quickly acknowledged how Griggs …

The Fraud-On-The-Market Tort, John C.P. Goldberg, Benjamin C. Zipursky

Vanderbilt Law Review

It is commonplace to observe that there are differences between private 10b-5 actions and common-law actions for deceit, notwithstanding that both travel under the name of "fraud."' It is equally commonplace to suppose that these differences primarily reflect the need to adapt law that was first developed in a world of face-to-face transactions to the modern reality of large-scale, impersonal markets. The poster children for the transition from common-law fraud to securities fraud are, first, the Supreme Court's adoption in Basic, Inc. v. Levinson of the fraud-on-the-market doctrine and, second, the related emergence of securities fraud class actions. Amidst this …