Courts Commons^™

Dark Accounting Matter, Colleen Honigsberg

Seattle University Law Review

Physicists calculate that approximately 85% of the matter in the universe is composed of “dark matter” that “does not absorb, reflect, or emit electromagnetic radiation and is therefore difficult to detect.” The S&P 500 currently trades at a price-to-book value of 4.2, suggesting that book value accounts for less than 20% of the S&P 500’s market value. The remaining 80% appears nowhere in these firms’ balance sheets—it is invisible to contemporary accounting techniques and constitutes “dark accounting matter.”

Some “dark accounting matter” is composed of factors commonly described as components of “ESG.” Human capital, for example, is an intangible asset …

The Employees’ Dilemma: Balancing Internal Reporting, Whistleblowing, And Insider Trading Risks, Geeyoung Min

Seattle University Law Review

The Essay examines how recent developments in insider trading regulations and whistleblower reward programs can lead to unintended and counterproductive results of discouraging employees from using internal reporting channels within corporate compliance programs. While the presence of a robust and well-functioning corporate compliance program is a critical factor both in mitigating the level of public enforcement actions against companies and in protecting corporate managers from liability in private litigation, these programs often provide little incentive for employees to report potential misconduct internally.

Corporate compliance programs are designed to promote the upward information flow within the company, which is essential for …

How The Antidiscrimination Law Of Commercial Transactions Really Works, Helen Norton

Seattle University Law Review

A variety of businesses now cite 303 Creative when seeking First Amendment protection for their refusal to serve certain customers based on those customers’ protected class status. How this litigation will play out remains to be seen. But future courts need not, and should not, repeat the 303 Creative Court’s misunderstanding of how the antidiscrimination law of commercial transactions actually works.

Part I of this Essay explains the Court’s longstanding understanding of the antidiscrimination law of commercial transactions, and then describes the Court’s failure to engage with this precedent in 303 Creative. Part II then identifies the 303 Creative decision’s …

Understanding The Big Three’S Wavering Support Of Environmental And Social Shareholder Proposals, Jeff Schwartz, Jefferson Jensen

Seattle University Law Review

Because of their substantial equity portfolios, BlackRock, Vanguard, and State Street (the Big 3) are central players in corporate governance. It is, therefore, critical to understand how they vote. One puzzle is that their support for shareholder proposals on environmental and social matters appears to waiver. In 2020, for instance, BlackRock supported 11.1% of environmental proposals at S&P 500 firms. In 2021, it seemingly reversed course, supporting 55.2%. It then flipped again, supporting 32.1% in 2022. Such statistics suggest that the Big 3 are constantly changing their views on these topics. This Article seeks to better understand whether this is …

Volume 48 Masthead, Seattle University Law Review

Seattle University Law Review

Volume 48 Masthead

Pengakuan Hak Masyarakat Adat Dalam Hukum Pengelolaan Sumber Daya Alam: Studi Perbandingan Indonesia–Australia, Farid Al Hadana, Sukarman Sukarman, Farhan Margono, Hamzah Hamzah

Jurnal Hukum & Pembangunan

Meskipun terdapat pengakuan konstitusional di Indonesia dan Australia, hak-hak masyarakat adat dalam tata kelola sumber daya alam masih lemah perlindungannya, terutama karena kerangka kerja Indonesia yang terfragmentasi dan tersentralisasi gagal mewujudkan keadilan lingkungan. Makalah ini membandingkan rezim hukum Indonesia dan Australia terkait tata kelola lahan dan sumber daya masyarakat adat untuk mengidentifikasi bagaimana pengakuan dapat diubah menjadi hak yang dapat ditegakkan dan untuk merumuskan model reformasi yang berorientasi pada keadilan bagi Indonesia. Dengan menggunakan analisis hukum komparatif kualitatif, makalah ini menggabungkan observasi doktrinal terhadap yurisprudensi konstitusional, peraturan-undangan, dan yurisprudensi dengan pemeriksaan dokumen kebijakan dan konflik ilustratif yang melibatkan wilayah masyarakat …

Analisis Demokrasi Pada Pengisian Jabatan Gubernur Dan Wakil Gubernur Di Daerah Istimewa Yogyakarta, Akbar Ardya Putra, Rosita Candrakirana, Andina Elok Puri Maharani

Jurnal Hukum & Pembangunan

The aim of this research is to analyze the implementation of democracy in the process of filling the governor and deputy governor positions in the Yogyakarta Special Region. This is regulated in the Special Areas Act No. 13/2012. The Act stipulates that the candidates for governor can only be the descendants of the Yogyakarta Sultanate and the candidates for deputy governor can be the descendants of the Duchy of Pakualaman. Following these provisions, there are differences between the special region of Yogyakarta and other regions using general elections to fill regional heads. The results of the study show that the …

Digital Constitutionalism: Resistensi Kebebasan Berpendapat Di Indonesia Dalam Hegemoni Algoritma Ruang Digital, Yuniar Prehatini, Linda Noviana Mita Devi

Jurnal Hukum & Pembangunan

Era digital membawa transformasi dalam segala aspek kehidupan. Perkembangan teknologi menghadirkan perkembangan zaman pada sisi positif dan negatif dimana penggunaan ruang digital yang dapat diakses tanpa batasan wilayah. Kebebasan diartikan melalui teknologi dengan adanya akses ruang digital memberikan kemudahan akses kepada siapa pun. Melalui algoritma digital, segala hal baik dari aspek budaya, politik, maupun ekonomi dapat diketahui sehingga hal ini juga dapat menimbulkan keresahan apabila tidak diatur batasan akan keberadaannya. Penelitian ini menggunakan penelitian normatif yang fokus pada analisis terhadap norma, asas, doktrin, dan teori hukum yang berkaitan dengan perlindungan hak asasi manusia di ruang digital. Hasil penulisan ini menunjukkan …

Analisis Klausula Choice Of Forum Dalam Kontrak Standar E-Commerce Di Indonesia: Kajian Berdasarkan Perspektif Perlindungan Konsumen, Sarping Saputra

Jurnal Hukum & Pembangunan

This research discusses choice of forum clauses in standard contracts on the five largest e-commerce platforms in Indonesia, namely Shopee, Tokopedia, Lazada, Bukalapak, and Blibli. The clause stipulates the mechanism and location of dispute resolution that automatically binds consumers when using the platform. In practice, these clauses tend to burden consumers, especially regarding access to fair dispute resolution. This research focuses on the compatibility of the choice of forum clause with the principles of consumer protection regulated in the Consumer Protection Law (UUPK). The results reveal that most e-commerce platforms use exclusive forms of choice of forum clauses, such as …

Dekolonisasi Hukum Perdata Indonesia: Kritik Terhadap Warisan Kolonial Dan Implikasinya Terhadap Pembangunan Hukum Berkeadilan, R. Mustar Lofi

Jurnal Hukum & Pembangunan

Hukum perdata Indonesia hingga kini masih berada di bawah bayang-bayang warisan kolonial, terutama melalui keberlakuan Burgerlijk Wetboek (BW) 1848 yang diwarisi dari Belanda. Meskipun berbagai peraturan baru telah diundangkan, fondasi utama hukum perdata belum sepenuhnya lepas dari struktur, nilai, dan cara pandang kolonial. Artikel ini mengkaji secara kritis bagaimana dominasi hukum kolonial masih berpengaruh dalam pembentukan dan penegakan hukum perdata di Indonesia, serta mengapa dekolonisasi menjadi penting dalam pembangunan sistem hukum yang berkeadilan. Dengan menggunakan pendekatan yuridis-normatif dan analisis interdisipliner dari perspektif sosiologis hukum dan filsafat hukum, tulisan ini menelusuri bagaimana warisan hukum kolonial menciptakan ketimpangan, terutama dalam hal akses …

Green Dividends: A Case Study In Green Dividends And The Conditions For Private Ordering Solutions, Anne M. Tucker

Seattle University Law Review

This Essay introduces a novel private ordering solution to facilitate corporate investments in pro-social and environmental initiatives: Green dividends. Green dividends are an optional increase in shareholder dividends that are returned to the company to be reinvested in environmental initiatives or kept by a shareholder.

Green dividends pose an alternative to the current gridlocked debate that corporations can’t, won’t, shouldn’t, and shouldn’t even try to act in pro-social or environmental ways. Turning the common refrains on their head converts each narrative into an element for a successful private ordering solution: authority, accountability, shareholder buy-in, and government- backed enforcement. With Green …

Does Climate Disclosure Work To Reduce Greenhouse Gas Emissions? Emerging Evidence Suggests Cautious Optimism, Cynthia A. Williams

Seattle University Law Review

Significant regulatory resources have been spent developing global, voluntary climate and sustainability disclosure standards, such as the TCFD, TNRD, and ISSB’s Sustainability and Climate Disclosure standards, or domestically required disclosures, such as in the EU and in the U.S. Thus, it is important to evaluate whether this disclosure, particularly voluntary, qualitative disclosure, will have the power to shift the allocation of capital, will have a significant effect on the management of climate risk within firms, and ultimately will reduce climate change risk and biodiversity loss.

In this Article, several interrelated questions will be discussed. First, what does the empirical evidence …

Volume 48 Masthead, Seattle University Law Review

Seattle University Law Review

Volume 48 Masthead

A Critical Juncture: The Convergence Of Natural Resource Management And Tribal Sovereignty, Anna Aleta Butterfield

Graduate Student Portfolios, Professional Papers, and Capstone Projects

This portfolio reflects the work I’ve done in my four years as a dual degree student, pursuing a Master of Science in Environmental Studies and a juris doctorate degree, and focuses on policies and laws surrounding natural resource management. It touches on how those policies relate to and expand or constrict the exercise of sovereignty by indigenous populations.

This piece first considers the effects of plastic on salmon populations and those indigenous groups that rely on salmon for subsistence and cultural purposes. The remaining three pieces focus on various aspects of the Confederated Salish and Kootenai Tribes - Montana Water …

Ius Constituendum Pengaturan Ambang Batas Parlemen Berdasarkan Putusan Mahkamah Konstitusi Nomor 116/Puu-Xxi/2023, Arsyianti Mega Nanda, Erland Ferdinansyah

Jurnal Hukum & Pembangunan

Pemilu merupakan wujud pelaksanaan kedaulatan rakyat di Indonesia yang menganut sistem presidensial dan multipartai. Namun, banyaknya partai memicu instabilitas koalisi dan melemahkan dukungan terhadap presiden. Untuk mengatasi hal ini diterapkan ambang batas parlemen (Parliamentary Threshold). Putusan MK No. 116/PUU-XXI/2023 menyatakan ambang batas 4% konstitusional untuk Pemilu 2024, namun inkonstitusional untuk Pemilu selanjutnya. Putusan ini menegaskan perlunya ambang batas baru yang tidak hanya menyederhanakan sistem kepartaian, tetapi juga menjamin keadilan suara dan proporsionalitas sesuai prinsip kedaulatan rakyat. Penelitian ini menggunakan metode yuridis normatif dengan pendekatan kualitatif-deskriptif. Pengumpulan data dilakukan melalui studi kepustakaan. Kerangka teori yang digunakan dalam penelitian ini meliputi teori …

Menguak Status Dan Legalitas Rupiah Digital Sebagai Legal Tender (Perspektif Teori Keadilan Bermartabat), Sylvia Setjoatmadja, Jeferson Kameo

Jurnal Hukum & Pembangunan

Digital technology and modern telecommunications have been and will continue to be key factors in the emergence of various innovative products. One such innovative product is digital currency, specifically Central Bank Digital Currency (CBDC). In Indonesia, advancements in digital technology and telecommunications have encouraged the government to issue a CBDC, which will be named Digital Rupiah. The initiative to issue Digital Rupiah also responds to global trends and the public's need for secure, efficient, and sustainable payment instruments.

However, the plan to issue Digital Rupiah is not without challenges, particularly regarding the clarity of its legal status as a lawful …

Pengungkapan Model Mediasi Kepada Pihak Bersengketa Oleh Mediator Sebagai Pelaksanaan Prinsip Informed Consent (Kajian Mediasi Sektor Perbankan), Tri Harnowo, Fahmi Shahab

Jurnal Hukum & Pembangunan

The mediation techniques commonly used by mediators are facilitative, evaluative, or hybrid models. The choice of mediation model generally depends on the complexity of the dispute, the nature of the relationship, and the expectations for further cooperation. This research examines the application and disclosure of mediation models in the banking sector. The methodology used is normative, analyzing regulations related to the application and disclosure of mediation models in the banking sector. Data collection was obtained from primary legal materials in the form of legislation, secondary legal materials such as professional codes of ethics, books, articles, and scientific journals, and tertiary …

Ratio Legis Penambahan Modal Negara Kepada Lembaga Pembiayaan Ekspor Indonesia, Syarif Hidayat

Jurnal Hukum & Pembangunan

Since its establishment under Law Number 2 of 2009 concerning The Indonesian Export Financing Institution (LPEI), the Indonesian Export Financing Institution has gained additional capital participation nine times between 2010 and 2021 by the passage of government regulations. The rules for extra capital in the legislation on its establishment only take the form of regulations in the event that the capital of the Indonesian Export Financing Institution is decreased by a particular amount, but the additional capital that has been carried out thus far is not meant to replace the capital deficiency. As a result, this research was undertaken to …

Urgensi Memahami Arbitrase Bagi Pemangku Kepentingan Dunia Bisnis Di Indonesia, Bambang Hariyanto, Saptarini Saptarini

Jurnal Hukum & Pembangunan

Abstract The resolution of business disputes through arbitration forums is increasingly favored by the majority of business actors in Indonesia. One indication of this is the growing number of business actors, both from the private sector and state-owned enterprises, who include arbitration agreements as dispute clauses in their contracts. Arbitration has even attracted the interest of MSMEs (Micro, Small, and Medium Enterprises) as a forum to resolve their business disputes. This phenomenon ultimately highlighted the urgency for stakeholders in the business world to understand arbitration. Using normative juridical methods, this article contained a series of analyses of primary materials, including …

The Modern Energizer Bunny - Hopping Into The Nuclear Energy Revolution: The Tenth Circuit's Analysis In New Mexico Ex Rel. Balderas V. U.S. Nuclear Regulatory Commission, Jack A. Mansur

Villanova Environmental Law Journal (1991 - )

No abstract provided.

A History Of Corporate Law Federalism In The Twentieth Century, William W. Bratton

Seattle University Law Review

This Article describes the emergence of corporate law federalism across a long twentieth century. The period begins with New Jersey’s successful initiation of charter competition in 1888 and ends with the enactment of the Sarbanes-Oxley Act in 2002. The federalism in question describes the interrelation of state and federal regulation of corporate internal affairs. This Article takes a positive approach, pursuing no normative bottom line. It makes six observations: (1) the federalism describes a division of subject matter, with internal affairs regulated by the states and securities issuance and trading regulated by the federal government; (2) the federalism is an …

Stakeholder Capitalism’S Greatest Challenge: Reshaping A Public Consensus To Govern A Global Economy, Leo E. Strine Jr., Michael Klain

Seattle University Law Review

The Berle XIV: Developing a 21st Century Corporate Governance Model Conference asks whether there is a viable 21st Century Stakeholder Governance model. In our conference keynote article, we argue that to answer that question yes requires restoring—to use Berle’s term—a “public consensus” throughout the global economy in favor of the balanced model of New Deal capitalism, within which corporations could operate in a way good for all their stakeholders and society, that Berle himself supported.

The world now faces problems caused in large part by the enormous international power of corporations and the institutional investors who dominate their governance. These …

Henderson And The Objective Observer Standard: The Future Of Race-Conscious Standards Post-Students For Fair Admissions, Gabriela Dionisio

Seattle University Law Review

On June 29, 2023, the Supreme Court of the United States decided Students for Fair Admissions v. President & Fellows of Harvard College, which struck down race-conscious admissions policies. Within just a year after its ruling, Students for Fair Admissions has already had a sweeping impact, reaching beyond higher education. Although the Supreme Court did not indicate whether Students for Fair Admissions applies to sectors beyond higher education, law firms, and other employers have already modified their diversity policies and initiatives, erasing race and company diversity considerations. Given those dramatic changes, there is growing fear that Students for Fair Admissions …

Same Crime, Different Time: Sentencing Disparities In The Deep South & A Path Forward Under The Fourteenth Amendment, Hailey M. Donovan

Seattle University Law Review

The United States has the highest incarceration rate of any country in the world. The American obsession with crime and punishment can be tracked over the last half-century, as the nation’s incarceration rate has risen astronomically. Since 1970, the number of incarcerated people in the United States has increased more than sevenfold to over 2.3 million, outpacing both crime and population growth considerably. While the rise itself is undoubtedly bleak, a more troubling truth lies just below the surface. Not all states contribute equally to American mass incarceration. Rather, states have vastly different incarceration rates. Unlike at the federal level, …

Public Primacy In Corporate Law, Dorothy S. Lund

Seattle University Law Review

This Article explores the malleability of agency theory by showing that it could be used to justify a “public primacy” standard for corporate law that would direct fiduciaries to promote the value of the corporation for the benefit of the public. Employing agency theory to describe the relationship between corporate management and the broader public sheds light on aspects of firm behavior, as well as the nature of state contracting with corporations. It also provides a lodestar for a possible future evolution of corporate law and governance: minimize the agency costs created by the divergence of interests between management and …

Stakeholder Governance As Governance By Stakeholders, Brett Mcdonnell

Seattle University Law Review

Much debate within corporate governance today centers on the proper role of corporate stakeholders, such as employees, customers, creditors, suppliers, and local communities. Scholars and reformers advocate for greater attention to stakeholder interests under a variety of banners, including ESG, sustainability, corporate social responsibility, and stakeholder governance. So far, that advocacy focuses almost entirely on arguing for an expanded understanding of corporate purpose. It argues that corporate governance should be for various stakeholders, not shareholders alone.

This Article examines and approves of that broadened understanding of corporate purpose. However, it argues that we should understand stakeholder governance as extending well …

Corporate Law In The Global South: Heterodox Stakeholderism, Mariana Pargendler

Seattle University Law Review

How do the corporate laws of Global South jurisdictions differ from their Global North counterparts? Prevailing stereotypes depict the corporate laws of developing countries as either antiquated or plagued by problems of enforcement and misfit despite formal convergence. This Article offers a different view by showing how Global South jurisdictions have pioneered heterodox stakeholder approaches in corporate law, such as the erosion of limited liability for purposes of stakeholder protection in Brazil and India, the adoption of mandatory corporate social responsibility in Indonesia and India, and the large-scale program of Black corporate ownership and empowerment in South Africa, among many …

Robo-Voting: Does Delegated Proxy Voting Pose A Challenge For Shareholder Democracy?, John Matsusaka, Chong Shu

Seattle University Law Review

Robo-voting is the practice by an investment fund of mechanically voting in corporate elections according to the advice of its proxy advisor— in effect fully delegating its voting decision to its advisor. We examined over 65 million votes cast during the period 2008–2021 by 14,582 mutual funds to describe and quantify the prevalence of robo-voting. Overall, 33% of mutual funds robo-voted in 2021: 22% with ISS, 4% with Glass Lewis, and six percent with the recommendations of the issuer’s management. The fraction of funds that robo-voted increased until around 2013 and then stabilized at the current level. Despite the sizable …

The Limits Of Corporate Governance, Cathy Hwang, Emily Winston

Seattle University Law Review

What is the purpose of the corporation? For decades, the answer was clear: to put shareholders’ interests first. In many cases, this theory of shareholder primacy also became synonymous with the imperative to maximize shareholder wealth. In the world where shareholder primacy was a north star, courts, scholars, and policymakers had relatively little to fight about: most debates were minor skirmishes about exactly how to maximize shareholder wealth.

Part I of this Essay discusses the shortcomings of shareholder primacy and stakeholder governance, arguing that neither of these modes of governance provides an adequate framework for incentivizing corporations to do good. …

The Structure Of Corporate Law Revolutions, William Savitt

Seattle University Law Review

Since, call it 1970, corporate law has operated under a dominant conception of governance that identifies profit-maximization for stockholder benefit as the purpose of the corporation. Milton Friedman’s essay The Social Responsibility of Business is to Increase Its Profits, published in September of that year, provides a handy, if admittedly imprecise, marker for the coronation of the shareholder-primacy paradigm. In the decades that followed, corporate law scholars pursued an ever-narrowing research agenda with the purpose and effect of confirming the shareholder-primacy paradigm. Corporate jurisprudence followed a similar path, slowly at first and later accelerating, to discover in the precedents and …