Caremark Compliance for the Next Twenty‐Five Years

One of the most influential cases in corporate governance is In re Caremark International Inc. Derivative Litigation (Caremark). In 1996, Caremark imposed a novel duty on boards of directors to make a good faith attempt to implement and exercise oversight over obligations leading to liability. Breach of this minimal duty has been difficult for plaintiffs to plead and prove, and the case law is littered with dismissed Caremark lawsuits. As Caremark's reign reaches a quarter‐century, however, its duties are primed to evolve. Two cases, Marchand v. Barnhill and In re Clovis Oncology, Inc. Derivative Litigation, took the rare step of allowing Caremark claims to survive motions to dismiss. These cases signal a new understanding of Caremark obligating boards not merely to attempt oversight, but to ensure proactively that such oversight is effective. This subtle but significant change in board duties is one to which the academic literature should respond. This article first reviews the Marchand and Clovis cases and argues that these cases hold significance for the future of Caremark claims. Second, this article studies client advisories from law firms and other sources that evaluate the Clovis and Marchand cases. It finds that while these advisories offer useful tactical responses, they lack strategic advice that would benefit boards over the long term. Filling the gap, this article presents long‐term strategic advice for boards not only to meet Caremark duties but also to thrive as exemplars of good governance and ethical leadership for the next twenty‐five years.     

The Relational Dynamics of World Bank Survey Missions

This article demonstrates that World Bank internal learning has led to significant changes in how the organization interacts with government officials through survey missions. Reviewing evidence of institutional learning and associated changes in practice and focusing on the relational modes being manifest in technical assistance, the article identifies three main phases of World Bank survey missions: general survey missions (1940s–1960s), country assistance strategies (1990s–2000s), and country partnership frameworks (2010s). Overall, World Bank reviews have repeatedly highlighted the importance of non-hierarchical interactions between Bank staff and country officials. In recent years, practice has begun to catch up with these operational insights.     

The Final Frontier: China,Taiwan, and the United States in Strategic Competition for Central America

China’s rise as a global power corresponded with a diminution of Taiwanese diplomacy, which has left Central America as the last region to host a continuous bloc of countries that recognize the ROC. In this article, we argue that China’s success in gaining diplomatic recognition from Taiwan’s former allies has largely resulted from China's economic policy, specifically its promises of large-scale infrastructure projects and the integration of Central American economies with Chinese markets. However, there are limits to how far China has advanced in gaining full recognition from the region. The competing political and economic interests of China, Taiwan, the United States, and the Central American countries themselves, continue to influence patterns of diplomatic switching. More specifically, we argue that the threat of punitive measures from the United States combined with a turn in Taiwanese diplomacy toward assistance efforts to combat Covid-19 may deter future switching in the short to medium-term. Our analysis offers case studies of four Central American countries (Costa Rica, Panama, El Salvador and Nicaragua) to illustrate the multi-year processes by which China’s economic strategy leads to diplomatic switching and examine the paths ahead for the remaining holdouts facing the prospect of economic and political penalties by the United States.

     

Should algorithms be regulated by government?

There has been, and continues to be, an explosion in the use of algorithms across the economy and society. There are growing concerns about how algorithms are being used and whether they are accountable. This article reviews the literature on the issue of algorithms in several key areas, such as fairness, accountability, and transparency. The article examines arguments on why algorithms should be regulated, and it explores the available literature to identify how a potential Canadian regulatory framework may be developed.     

Cohabitation,female sacrifice,and judge-made law

This paper shares results of a study of judgments applying the common law as adapted to the cohabitation context. Specifically, the Supreme Court of Canada has held that couples who formed a ‘joint family venture’ may need to share the wealth gained during cohabitation. The study compares the couples leading to positive and negative findings of a joint family venture. Positive findings correlate with traditional markers of family and economic integration, such as joint bank accounts and the presence of children. Despite the discourse of family diversity, gendered patterns run across all the couples, with women assuming primary care of children, shouldering domestic labour, and making career sacrifices for the family. In a sign of the limits of judge-made reforms, the doctrine may be harder for some claimants to access than for others, in ways not necessarily tracking commitment and economic integration.     

I Nomi Degli Dei: A Reconsideration of Agamben’s Oath Complex

Law and Critique - This essay offers an exegesis and critique of the moment of community formation in Agamben’s Homo Sacer Project. In The Sacrament of Language, Agamben searches for the site...     

Enhancing Rescue in Chapter 11: Lessons from Reform Efforts in the United Kingdom

This is a dynamic time for insolvency law. Many jurisdictions have made or are considering reforms to their insolvency regimes. The United Kingdom has proposed a new standalone restructuring mechanism that incorporates many attributes of Chapter 11, including a cross-class cram down and the absolute priority rule. A distinctive feature of the UK proposal is the infusion of judicial discretion permitting courts to deviate from the absolute priority rule. This discretion is not permitted in the United States. This judicial discretion addresses a key problem with the application of the absolute priority rule in the United States—it may serve as an impediment to reorganization. This impediment is exacerbated by the recent U.S. Supreme Court decision, Czyzewski v. Jevic Holding Corp., which impacts the effective use of Chapter 11 rescue tools. This article explores the absolute priority rule, the problems associated with it, and the effect of Jevic in the United States. Drawing on the UK reform proposal, I argue that the United States should implement reforms that infuse judicial discretion into the application of the absolute priority rule. Doing so will facilitate the underlying policy goal of rescuing the company in Chapter 11 and also promote a broader policy goal of rescuing the business.     

The war on coal is over: assessing Obama-era regulations and the Trump Administration’s efforts to date

Abstract

For nearly a decade, Republicans accused Democrats and the Obama Administration of waging a “war on coal” and Democrats has cited economics as the primary cause of the industry’s troubles. Now that President Trump has declared the war on coal to be over, it is time to examine the regulations promulgated during the Obama Administration and their impact on the industry. This article will discuss the coal industry prior to, during, and after the Obama Administration with particular attention to Obama-era regulations that impacted the industry and President Trump’s efforts to repeal and replace the same.