May 28, 2025 Robert RosenCorporate Law
This article explores “normative” agency cost theory. It does so by examining its most discussed prescriptions for making healthy corporations (empowered shareholders, monitoring boards, pay-for-performance, and the market for corporate control). Presenting very impressive evidence, the article concludes that the remedies prescribed don’t work either to minimize managerial self-dealing or increase returns to shareholders. Yet despite the evidence, these remedies are still being prescribed. Professor Tingle’s confrontation with that fact is a singular contribution. Until I read this article, I believed the response “agency cost theory is good, it just has been poorly implemented; the dosages just need adjusting.” Professor Tingle offers a different response, the incontestability of agency theory’s “seductive simplicity” (P. 60).
Tingle reveals that normative agency theory’s continuing power derives from it telling a tale of temptation and seduction that “seems uncontroversial” (P. 15). It provides an account of how self-interested and unrestrained agents would act if given the opportunity to cheat. Without evidence, it assumes that “managers are systematically disloyal” (P. 59). And this assumption is not testable. If corporations were run by monks, the successes of their corporations would confirm the theory, and if their corporations were unsuccessful, the monks would be revealed to be disloyal by how they were selected or by their ignorance (Pp. 10-11). Continue reading "Don’t be Seduced by Agency Cost Theory and its Tales of Managers and their Temptations"
May 27, 2025 Joseph SeinerWork Law
In More Accommodation, Less Technicality for Workplace Whistleblowers, Professor Craig Senn performs an excellent analysis of the vast array of federal whistleblower and retaliation laws. He engages in a much-needed deep dive into the distinctions between these laws and proposes a new standard for worker protections. Professor Senn appropriately critiques the coverage employees receive when blowing the whistle under these laws and proposes a well-considered alternative and unified approach to protect workers.
The law in this field is confusing, at best. The various federal whistleblower statutes are articulated differently and have been applied in many ways. Without sufficient protection for those who appropriately complain, the statutes can lose all meaning and impact. Indeed, workers will be chilled from blowing the whistle if their careers and employment hang in the balance. Over the years, many courts have applied rigid standards for gaining protection, often holding employees to overly high standards and expectations in their knowledge and understanding of the law and statutes. Continue reading "Whistleblowing, Revisited"
May 26, 2025 Allison Anna TaitTrusts & Estates
Masayuki Tamaruya,
Trust Law and Colonialism,
in The Oxford Handbook of Comparative Trust Laws (Adam S. Hofri-Winogradow et al. eds, forthcoming), available at
SSRN (Sept. 1, 2024).
Tethered to and inextricably linked with the absence or decline of democratic governance, there has always been empire. Empires rise and fall, as they say, but the imperial impulse is perennial and new iterations of old empires emerge with dismal regularity, showing us that imperial formations are hard to erase.
The relationship between empire and trust law is one that is gaining increased attention, particularly in the context of offshore financial centers and the inescapable historical force of British colonialism. Popular books like Butler to the World and, more recently, The Hidden Globe have brought the topic of colonialism into a wider conversation about wealth inequality and legal imperialism. Both historians and sociologists have dug into the subject, with excellent results like those of Vanessa Ogle and Brooke Harrington. And legal scholars are also joining the conversation, talking about colonial aftermaths and the ghosts of colonialism that persist in our systems of wealth transfer.
A new contribution to the literature—and our understanding—of trust law and colonialism is Masayuki Tamaruya’s chapter in the forthcoming Oxford Handbook of Comparative Trust Laws, aptly entitled Trust Law and Colonialism. Tamaruya takes the reader on a historical adventure through diverse empires and their spheres of influence. Tamaruya focuses in particular on the British empire, the Americas, and Asia explaining that “distinct patterns of colonialism naturally engender different dynamisms in using trust and trust laws.” Continue reading "Trust Law and the Tides of Colonialism"
May 23, 2025 Sarah SwanTorts
Deborah N. Archer & Joseph Schottenfeld,
Defending Home: Toward a Theory of Community Equity, __
U. Chi. L. Rev. __ (forthcoming, 2025), available at
SSRN (Sept. 30, 2024).
For communities suffering the harms of long-standing neglect and callous infrastructure decisions that dump highways, landfills, and the like in the middle of them, legal remedies have been few and far between. In their illuminating article, Defending Home: Toward a Theory of Community Equity, Deborah Archer and Joseph R. Schottenfeld offer a new framework to render such community-based harms legally cognizable, and call on tort law as an important conceptual piece of this project.
Archer and Schottenfeld begin by telling the story of Sandridge, a small, unincorporated, historically Black community in South Carolina. When the surrounding county decided it was time for a new four-lane road project to connect two pre-existing highways and make it easier for vacationers to travel to the beach, numerous road placement options were proposed. The county determined that the best path forward would be to lay the highway down right in the middle of Sandridge, even though the road would functionally destroy the community, devouring multiple homes, businesses, and the community park, and isolating the heart and soul of the community, the church, from its many attendees. Continue reading "Building a Community Equity Framework from the Tort of Public Nuisance"
May 22, 2025 Scott Skinner-ThompsonTechnology Law
For American lawyers, the concept of data protection can seem overly bureaucratic and even a bit obtuse. American legal scholars, in general, prefer to think in terms of privacy, with its manifold methods of potential protection of the liberal individual subject via tort causes of action, criminal law, consumer protection, and, occasionally some actual command and control regulation. In other words, the concept of data protection can—again, particularly for American audiences—seem question begging: protection of what data, whose data, and from whom? (Clearly the same questions can and are asked about privacy protections).
In his recent book, Professor Gianclaudio Malgieri explains why data protection laws matter. The GDPR isn’t an annoying consent regime for internet browsing, but can be mustered to protect people along several axes of vulnerability—including their demographics, yes, but also any power imbalance relative to the data controllers. The GDPR isn’t ideal for guarding against vulnerability because it lacks clear and explicit protections for the precarious and, according to Malgieri, new regimes must be imagined and implemented. But the book’s critically optimistic view helps us see how data protection can be used here and how to guard against vulnerability; in essence, as a form of harm reduction. It is a rigorous book that deftly applies often ethereal (but important) philosophical concepts to a turgid regulatory regime in order to unpack that regime’s anti-subordination potential. Continue reading "Centering the Vulnerable through Data Protection"
May 21, 2025 Jon ChoiTax Law
Work requirements are pervasive in American social safety nets: for example, the federal Earned Income Tax Credit and Child Tax Credit both only kick in after a taxpayer makes a certain level of income. Work requirements are controversial because they exclude the worst-off (including those who are unable to work) from receiving government benefits. One important reason that they remain is that conditioning benefits on employment is thought to encourage labor force participation. But is this really true? A remarkable new paper by Jacob Goldin, Tatiana Homonoff, Neel Lal, Ithai Lurie, Katherine Michelmore, and Matthew Unrath provides compelling evidence that, at least in the context of state child tax credits, the answer is no.
In Work Requirements and Child Tax Benefits, the authors rigorously study the effects of conditioning child tax benefits on work. Their primary focus is a 2022 reform in California that eliminated the work requirement for the state’s Young Child Tax Credit (YCTC). Before this change, families needed at least $1 of earned income to receive the full $1000 credit; afterward, even non-working families qualified. The authors complement this analysis with evidence from five other states with varying child tax credit designs. Continue reading "Do Work Requirements Matter? New Evidence"
May 20, 2025 Verity WinshipInternational & Comparative Law
Luca Enriques, Matteo Gatti & Roy Shapira,
How the EU Sustainability Due Diligence Directive Could Reshape Corporate America, available at
SSRN. (April 27, 2025).
Corporate America may face an unusual pairing in the fight over corporate responsibility for human rights and the environment: EU rules and US enforcement. The potential for this (unintentional) partnership is the subject of How the EU Sustainability Due Diligence Directive Could Reshape Corporate America. The article considers how the EU Directive on Corporate Sustainability Due Diligence (CS3D) will affect US companies, focusing on a “unique combination of the EU ambitious regulation and the US robust private enforcement landscape” (P.1).
The EU directive has a sweeping geographic reach, extending beyond EU boundaries. It requires “every large corporation operating in the EU market” to “conduct due diligence on how its operations affect human rights and the environment” (P. 8). US companies with significant EU revenue are pulled in. The directive’s influence also cascades down to smaller companies as these large multinationals must monitor their “activity chain” worldwide (P. 10). Continue reading "European Rules, American Enforcement"
May 19, 2025 Steve GoldLexEnvironmental Law
In my most recent Jot, I reviewed two articles that explored “The Limits to Law(s)” – more precisely, the inability of United States environmental law to respond quickly and effectively to the global problems of PFAS contamination and plastics pollution. William Boyd’s De-Risking Environmental Law criticizes the law’s ineffectual response to toxic hazards more generally and identifies a surprising culprit. “Environmental law, it seems,” Boyd writes, “suffers from too much science and not enough law.” (P. 156.)
What we need instead, says Boyd, is “a new ethics of regulatory science . . . that recenters law in the commitment to protecting public health.” (P. 153.) This new twist to an old debate about whether ethics or science should serve as the primary justification for environmental law startles the reader. After all, science appeared to have won that debate decisively and long ago. How could any government make policy choices to protect public health or ecosystems without a thorough understanding of the medical and ecological dynamics at stake? We are so accustomed to relying on science to justify regulatory interventions it seems impossible to imagine any other way of thinking.
And that, according to Boyd, is exactly the problem. Continue reading "The Limits to Science"
May 16, 2025 Scott CummingsLegal Profession
Adam Chilton, Jacob Goldin, Kyle Rozema, & Sarath Sanga,
Occupational Licensing and Labor Market Mobility: Evidence from the Legal Profession (Aug. 23, 2024), available at
SSRN.
In Occupational Licensing and Labor Market Mobility: Evidence from the Legal Profession, Adam Chilton, Jacob Goldin, Kyle Rozema, and Sarath Sanga investigate the tradeoffs of state bar licensing requirements through the lens of bar exam waiver policies. These policies permit lawyers with a threshold level of experience to obtain a state bar license without having to sit for the bar examination, effectively “waiving in.” The authors use variation in state waiver policies as a natural experiment permitting empirical analysis of whether states allowing entry through waiver experience a decline in lawyer quality, measured in relation to metrics of lawyer discipline and law school status. The variation in policies arises because some states, like California, categorically do not permit waiver, while waiver states include those that are more restrictive (with “Reciprocity” policies requiring reciprocal waiver from the originating state) and less restrictive (with “Admission on Motion” policies permitting waiver without reciprocity).
The authors conceptualize waiver policies as creating “corridors” between states that are either closed or open and codes corridors based on waiver policies from 1983 to 2019. They examine lawyer bar admissions through these corridors based on Martindale-Hubbell directory information on the state and year in which each listed lawyer obtained license(s) (1.7 million observations through 2019). They then fold in data on lawyer quality, derived from a dataset of all lawyers for whom public discipline records are available during the relevant time frame (from a total of 37 states), added to which is information on law school attended (available for roughly 90 percent of lawyers in the dataset). The authors put in an impressive amount of work assembling these datasets and demonstrates ingenuity in using waiver policy variation to conduct the experiment. Continue reading "Do Bar Exam Waivers Hurt Lawyer Quality?"
May 15, 2025 Anders WalkerLegal History
Kathleen DuVal’s Native Nations is the latest in a raft of books that tackle the long history of Native America. It resonates with Pekka Hämäläinen’s Indigenous Continent: The Epic Contest for North America (2022) and Ned Blackhawk’s capacious The Rediscovery of America: Native Peoples and the Unmaking of American History (2023). For legal historians, DuVal’s book makes for interesting reading because it combines both the long history of Native America – including the rise and fall of Indian cities like Cahokia – and the more recent past, all the way up to the “indigenous renaissance” of today. (P. 552.)
Like Hämäläinen’s Indigenous Continent, DuVal begins her story before European contact, explaining how Native Americans thrived on the North American continent for centuries. Cahokia, a massive complex on the Mississippi River, boasted a population larger than London in 1250. However, in the years leading up to European arrival, oddly modern problems—including “climate change”—led Native Americans to abandon their urban lives for smaller, more democratic social formations, or what DuVal calls a more “egalitarian order.” Continue reading "The Survival of Nations"
