Law Commons^™

The Economics Of Class Action Waivers, Albert H. Choi, Kathryn E. Spier

Articles

Many firms require consumers, employees, and suppliers to sign class action waivers as a condition of doing business with the firm, and the U.S. Supreme Court has endorsed companies’ ability to block class actions through mandatory individual arbitration clauses. Are class action waivers serving the interests of society or are they facilitating socially harmful business practices? This paper synthesizes and extends the existing law and economics literature by analyzing the firms’ incentive to impose class action waivers. While in many settings the firms’ incentive to block class actions may be aligned with maximizing social welfare, in many other settings it …

The Reincorporation Of Prisoners Into The Body Politic: Eliminating The Medicaid Inmate Exclusion Policy, Mira K. Edmonds

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Incarcerated people are excluded from Medicaid coverage due to a provision in the Social Security Act Amendments of 1965 known as the Medicaid Inmate Exclusion Policy (“MIEP”). This Article argues for the elimination of the MIEP as an anachronistic remnant of an earlier era prior to the massive growth of the U.S. incarcerated population and the expansion of Medicaid eligibility under the Patient Protection and Affordable Care Act of 2010. It explores three reasons for eliminating the MIEP. First, the inclusion of incarcerated populations in Medicaid coverage would signify the final erasure from the Medicaid regime of the istinction between …

Disability, Universalism, Social Rights, And Citizenship, Samuel R. Bagenstos

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The 2016 election has had significant consequences for American social welfare policy. Some of these consequences are direct. By giving unified control of the federal government to the Republican Party for the first time in a decade, the election has potentially empowered conservatives to ram through a bill to repeal the Affordable Care Act—the landmark “Obamacare” law that marked the most significant expansion of the social welfare state since the 1960s. Other consequences are more indirect. Both the election result itself, and Republicans’ actions since, have spurred a renewed debate within the left-liberal coalition regarding the politics of social welfare …

Food Deprivation: A Basis For Refugee Status?, James C. Hathaway

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It is commonplace to speak of those in flight from famine, or otherwise migrating in search of food, as “refugees.” Over the past decade alone, millions of persons have abandoned their homes in countries such as North Korea, Sudan, Ethiopia, Congo, and Somalia, hoping that by moving they could find the nourishment needed to survive. In a colloquial sense, these people are refugees: they are on the move not by choice, but rather because their own desperation compels them to pursue a survival strategy away from the desperation confronting their home communities.

The question addressed here is whether persons in …

Using Preventive Legal Advocacy To Keep Children From Entering Foster Care, Vivek Sankaran

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Children may unnecessarily enter foster care because their parents are unable to resolve legal issues that affect their safety and well-being in their home.[...] Yet these kinds of legal needs for poor families are rarely met. On average, poor families experience at least one civil legal need per year, but only a small portion of those needs are satisfied. For about every six thousand people in poverty, there exists only one legal aid lawyer. So legal aid programs are forced to reject close to a million cases each year. This lack of legal services threatens the well-being of children[...] who …

Globalizing Social Finance: How Social Impact Bonds And Social Impact Performance Guarantees Can Scale Development, Deborah Burand

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While the SIB structure is still in its infancy, there is momentum building to globalize this social finance innovation so that it can help scale development goals around the world. Taking the SIB global is not a simple matter, however. This article explores several of the more challenging issues that are likely to arise in applying a SIB or elements of the SIB structure to social problems and development goals in developing countries. The article begins with a summary review of the goals and structures used in the two earliest SIBs. It then discusses key challenges and opportunities that SIBs …

L3cs: An Innovative Choice For Urban Entrepreneurs And Urban Revitalization, Dana Thompson

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Social enterprises offer fresh ways of addressing seemingly intractable social problems, such as high levels of unemployment and poverty in economically distressed urban areas in the United States. Indeed, although social enterprises have deep and longstanding roots, the recent iteration of the social enterprise movement is gaining momentum in the United States and globally. Though there is not a singularly accepted legal definition of social enterprises, they are popularly known as businesses that use forprofit business practices, principles, and discipline to accomplish socially beneficial goals. Social entrepreneurs, those who operate social enterprises, eschew a traditional notion of charity, which primarily …

The Past And Future Of Deinstitutionalization Litigation, Samuel R. Bagenstos

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Two conflicting stories have consumed the academic debate regarding the impact of deinstitutionalization litigation. The first, which has risen almost to the level of conventional wisdom, is that deinstitutionalization was a disaster. The second story challenges the suggestion that deinstitutionalization has uniformly been unsuccessful, as well as the causal link critics seek to draw with the growth of the homeless population. This Article, which embraces the second story, assesses the current wave of deinstitutionalization litigation. It contends that things will be different this time. The particular outcomes of the first wave of deinstitutionalization litigation, this Article contends, resulted from the …

Nonprofits And Narrative: Piers Plowman, Anthony Trollope, And Charities Law, Jill R. Horwitz

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What are the narrative possibilities for understanding nonprofit law? Given the porous barriers between nonprofit law and the literature about it, there are many. Here I consider two. First, nonprofit law and nonprofit literature are each enriched and made fully explicable by reference to the other. Nonprofit law has grown in parallel with literature. It may even be that important legal texts, texts about doing and being good, were imported directly from literary sources into law. Second, in writings ranging from sensational journalism to high literature, nonprofit laws and the scandals involving their violations have captured the public imagination for …

Deleveraging Microfinance: Principles For Managing Voluntary Debt Workouts Of Microfinance Institutions, Deborah Burand

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This paper focuses on the challenges of responding to a deleveraging of the microfinance sector and offers guidelines for stakeholders in microfinance-regulators, policymakers, investors (debt and equity), donors, and microfinance providers-for how to address these challenges in the context of a microfinance institution debt workout so as to minimize undue disruption and damage to the microfinance sector as a whole.

An Inclusive, Progressive National Savings And Financial Services Policy, Michael S. Barr

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How many of us walk by the signs for "Checks Cashed Here," "Money Orders for Sale," and "Payday Loans: Get Cash Quick" without thinking about the implications of those signs for the daily lives of lower-income households? Most of us can take for granted getting our paychecks directly deposited into our bank accounts, writing a check, or storing our money in an account. We often struggle to save for longer-term goals, such as our children's education, or retirement, but most of us, most of the time, do not worry whether our savings or insurance will be enough to get us …

A Comment On Nielsen's And Albiston's Sample Selection Methodology, And Implications For The 'Have-Nots', Laura Nyantung Beny

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Professors Nielsen and Albiston revisit the 1978 article, The Public Interest Law Industry, by Joel F. Handler, Betsy Ginsberg, and Arthur Snow, which presents an empirical study of the public interest law ("PIL") industry in the mid-1970s. At that time, there were only eighty-six PIL firms or public interest law organizations ("PILOs") in existence in the United States. Then, PILOs tended to be small, had relatively small operating budgets, received most of their funds from private sources, and tended to focus most of their effort in a single substantive area, among other characteristics noted by Professors Nielsen and Albiston. However, …

Credit Where It Counts: Maintaining A Strong Community Reinvestment Act, Michael S. Barr

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The Community Reinvestment Act (CRA) has helped to revitalize low- and moderate-income communities and provided expanded opportunities for low- and moderate-income households. Recent regulatory steps aimed at alleviating burdens on banks and thrifts are unwarranted, and may diminish small business lending as well as community development investments and services. This policy brief explains the rationale for CRA, demonstrates its effectiveness, and argues that the recent regulatory proposals should be withdrawn or significantly modified.

Tax Preparation Services For Low- And Moderate-Income Households: Preliminary Evidence From A New Survey, Michael S. Barr, Jane K. Dokko

Articles

Recently, researchers have begun to examine the financial service patterns of low- and moderate-income households. These behaviors are of interest because high cost financial services, barriers to saving, the lack of insurance, and credit constraints contribute to poverty and other socioeconomic conditions . Many low- and moderate-income households use alterna­tive financial service (AFS) providers, such as check cashers, for their financial services needs. Tax preparation firms are among the important financial service providers in the lives of low-income households. Such firms help households navigate the complicated process of filing their taxes, and many low-income households obtain sizeable tax refunds. At …

Detroit Area Study On Financial Services: What? Why? How?, Michael S. Barr

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The following article is based on a talk give by Assistant Professor of Law Michael S. Barr to the University of Texas Law School-Harvard Law School Joint Conference on Commercial Law Realities in Austin, Texas, in April. Barr was selected by the University of Michigan’s Institute for Social Research, Survey Research Center to be the faculty investigator for the Detroit Area Study, which the University has conducted for more than 50 years. Barr is using the study to explore the financial services needs of low- and moderate-income households, building on his groundbreaking analysis in Banking the Poor. Barr raised a …

Credit Where It Counts: The Community Reinvestment Act And Its Critics, Michael S. Barr

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Despite the depth and breadth of U.S. credit markets, low- and moderate-income communities and minority borrowers have not historically enjoyed full access to credit. The Community Reinvestment Act (CRA) was enacted in 1977 to help overcome barriers to credit that these groups faced. Scholars have long leveled numerous critiques against CRA as unnecessary, ineffectual, costly, and lawless. Many have argued that CRA should be eliminated. By contrast, I contend that market failures and discrimination justify governmental intervention and that CRA is a reasonable policy response to these problems. Using recent empirical evidence, I demonstrate that over the last decade CRA …

Reparations As Redistribution, Kyle D. Logue

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The most controversial, and most intriguing, remedy sought by proponents of slavery reparations involves massive redistribution of wealth from whites to blacks within the United States. This is not to say that reparations proponents have focused only on racial redistribution. Some have called for an official apology from the U.S. government. Others seek the creation of a foundation or institute, funded by U.S. tax dollars, to be devoted to furthering the interests of African Americans, including the funding of K- 12 educational programs for black children and the funding of general civil rights advocacy to counteract the lingering effects of …

Banking The Poor, Michael S. Barr

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Low-income households often lack access to banking accounts and face high costs for transacting basic financial services through check cashers and other alternative financial service providers. These families find it more difficult to save and plan financially for the future. Living paycheck to paycheck leaves them vulnerable to medical or job emergencies that may endanger their financial stability, and lack of longer-term savings undermines their ability to improve skills, purchase a home, or send their children to college. Additionally, high cost financial services and inadequate access to bank accounts may undermine widely shared societal goals of reducing poverty, moving families …

Redistributing Optimally: Of Tax Rules, Legal Rules, And Insurance, Kyle D. Logue, Ronen Avraham

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From the beginning of the law and economics movement, normative legal economists have focused almost exclusively on evaluating the efficiency of alternative legal rules. The distributional consequences of legal rules, therefore, have largely been ignored. It is tempting to conclude that legal economists are hostile or indifferent to concerns of distributional fairness. In fact, however, the discipline of economics has a great deal to say about distributional policy. The normative branch of economics, known as welfare economics, has always been deeply concerned with distributional issues. It is not that welfare economists purport to know a priori the "right" or "optimal" …

Why We Need The Independent Sector: The Behavior, Law, And Ethics Of Not-For-Profit Hospitals, Jill R. Horwitz

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Among the major forms of corporate ownership, the not-for-profit ownership form is distinct in its behavior, legal constraints, and moral obligations. A new empirical analysis of the American hospital industry, using eleven years of data for all urban general hospitals in the country, shows that corporate form accounts for large differences in the provision of specific medical services. Not-for-profit hospitals systematically provide both private and public goods that are in the public interest, and that other forms fail to provide. Two hypotheses are proposed to account for the findings, one legal and one moral. While no causal claims are made, …

Access To Financial Services In The 21st Century: Five Opportunities For The Bush Administration And The 107th Congress (Symposium On Poverty And The Law)., Michael S. Barr

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Noticeably absent from debate over President Bush's agenda is any discussion of a central question for equality of opportunity in the 21st century. Access to financial services is the "passport" to our modem economy, as former Treasury Secretary Lawrence H. Summers oft said, but despite the enormous progress that has been made over the last decade, too many families in the United States still are left out of the financial services mainstream. There are five key opportunities that the Bush Administration, working with Congress and the private sector, can seize in order to continue to democratize access to financial services: …

The Current Life Insurance Crisis: How The Law Should Respond, Kyle D. Logue

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This article explores some of the issues raised by the new evidence of underinsurance. Part I explores the initial theoretical question: why do people buy life insurance? Put differently, what function does life insurance serve? Part II provides some background on the life insurance market as it currently exists. Thus, Part II summarizes the major types of life insurance that are currently offered and summarizes the main elements of the current regulatory regime for life insurance companies. Part III then provides support for the claim that households tend to drastically underconsume life insurance. Section A of that Part summarizes the …

The Pro Bono Priority: The University Of Michigan's Approach To Instilling Public Service, Robert E. Precht, Suellyn Scarnecchia

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The Pro Bono Priority is a two-part feature on pro bono service in Michigan law schools. in Crossing the Bar, the column of the Legal Education Committee, Dolores M. Coulter discusses how Michigan law schools measure up to the recommendations made in Learning to Serve, the report of the Commission on Pro Bono and Public Service Opportunities from the Association of American Law Schools. In the Access to Justice column, Robert E. Precht and Suellyn Scarnecchia focus specifically on the University of MichiHgan's unique approach to pro bono service.

An Interdisciplinary Seminar In Child Abuse And Neglect With A Focus On Child Protection Practice, Suellyn Scarnecchia

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Given the myriad of professionals involved in protecting children from abuse and neglect, legal practice in the field of child protection requires an understanding of the various disciplines these professionals represent. Professor Scarnecchia argues that such an understanding is necessary in order for the attorney to serve as a zealous advocate for her client. In hopes of creating this understanding in students at the University of Michigan, an interdisciplinary seminar in child abuse and neglect has been created. Professor Scarnecchia details the substantive content of the seminar, discussing specific issues that arise in protecting children. She explains that by using …

Fathers, The Welfare System, And The Virtues And Perils Of Child-Support Enforcement, David L. Chambers

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For half a century, Aid to Families with Dependent Children ("AFDC")' -the program of federally supported cash assistance to low-income families with children-has been oddly conceived. Congress has chosen to make assistance available almost solely to low-income single-parent families, not all low-income parents with children. At first many of the eligible single parents were women whose husbands had died. Over time, a growing majority were women who had been married to their children's father but who had separated or divorced. Today, to an ever increasing extent, they are women who were never married to the fathers of their children.2

Commentary: Meeting The Financial Needs Of Children, David L. Chambers

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Those who drafted the equitable distribution statutes adopted in New York and elsewhere wanted to help assure women and children an acceptable level of financial well-being after divorce. Marsha Garrison has shown that divorcing couples rarely possess enough resources to attain financial well-being even when they live together as a couple, let alone when they live in two separate households. She has also shown that, even in the cases of couples with substantial assets, the broad and general language of the equitable distribution statute did not lead (and could not have been expected to lead) to consistent distributions that assured …

Gideon V. Wainwright A Quarter-Century Later, Yale Kamisar

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In a brief working paper sent to all conference participants, Professor Burt Neuborne suggested that we might consider several themes, among them "Gideon Celebrated," "Gideon Fulfilled," and "Gideon Betrayed." I think these are useful headings.

Ann Arbor And Legal Aid, James J. White

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Since the leasing of its office in August 1965, the Washtenaw County Legal Aid Society has been open nearly 50 hours per week and has been staffed exclusively by second and third-year law students from the University of Michigan Law School. The bulk of the practice has been in family law--divorce, support, custody--but there have been a substantial number of creditor-debtor cases, a handful of misdemeanor defense cases, and a large batch of miscellaneous cases.