NewYorkUniversity
LawReview
Issue

Volume 98, Number 4

October 2023
Articles

The Religious Freedom Restoration Act, Federal Prison Officials, and the Doctrinal Dinosaur of Qualified Immunity

Nicole B. Godfrey

In 2020, the United States Supreme Court held that the Religious Freedom Restoration Act (RFRA) allows for claims for money damages against federal officials who substantially burden a person’s free exercise rights. As federal courts now grapple with these claims for damages, federal prison officials defending RFRA claims have turned to a trusty and time-honored defense: qualified immunity. In recent years, however, qualified immunity has come under increasing attack from judicial, scholarly, and popular sources, and the rationale underlying qualified immunity doctrine cannot withstand the kind of textual analysis that the Supreme Court used when announcing that the RFRA statute allowed for damages. Using the Supreme Court’s rationale, the text and doctrine of RFRA, and the long-articulated criticisms of qualified immunity, this Article argues that qualified immunity should not be an available defense to statutory claims asserted against federal prison officials.

In formulating this argument, the Article makes three primary contributions. First, it explains the importance of RFRA and its attendant religious rights protections to the more than 150,000 people confined by the federal government in the nation’s prisons. Second, it demonstrates how the defense of qualified immunity is incongruent to the statute’s text, history, and purpose. And, finally, it is the first article to analyze how the qualified immunity defense becomes unworkable when it is applied to the doctrine governing claims brought under the statute. Overall, by focusing on the narrow class of RFRA claims, the Article joins the chorus of commentators urging the federal courts to reconsider the knee-jerk application of qualified immunity to claims involving fundamental rights.

The Corporate Contract and Shareholder Arbitration

Mohsen Manesh, Joseph A. Grundfest

Longstanding U.S. Supreme Court precedents interpreting the Federal Arbitration Act (“FAA”) coupled with more recent corporate law decisions in Delaware have sparked concerns that public corporations may adopt arbitration provisions precluding shareholder lawsuits, particularly securities fraud class actions. In this Article, we show that these concerns are misplaced. It should be trivially easy for courts to conclude that an arbitration provision set forth in a corporate charter or bylaw is unenforceable against public company shareholders. Simply put, it is a matter of equity and the integral role that a state plays in chartering corporations.

Starting first with the corporate law of Delaware, where most public companies are incorporated, we explain that all corporate charter and bylaw provisions must be “twice tested”: they must be both legal and equitable to be enforceable. Applying the twice-tested framework, we then demonstrate that an arbitration provision precluding class actions would be inequitable because it would deny the vast majority of shareholders a remedy for violations of federal securities law, transfer wealth from smaller shareholders to the largest investors, insulate corporate managers and boards from accountability in a manner inconsistent with established state policy, and rupture the balance between federal and state regulation of public corporations.

Turning next to federal law, we demonstrate that Delaware’s ban on shareholder arbitration is not preempted, despite the Supreme Court’s expansive interpretation of the FAA. Here, our analysis starkly departs from prior scholarship. Rather than denying the contractual nature of a corporation’s governing documents, we embrace what the courts have repeatedly stated, that a corporation’s charter and bylaws are a binding contract between the corporation and its shareholders. However, we broaden the aperture to reveal another party to the corporate contract: the state that has chartered the corporation. This insight is critical with regard to interpretation of the FAA. The FAA applies only where there is an agreement to arbitrate, and there can be no such agreement where the chartering state has through its corporate law withheld its assent to arbitration. Thus, without state assent to shareholder arbitration, the essential precondition for application of the FAA is absent.

Testing Political Antitrust

Nolan McCarty, Sepehr Shahshahani

Observers fear that large corporations have amassed too much political power. The central fact that animates this concern is growing economic concentration—the rise in the market share of a small number of top firms. These firms are thought to use their enhanced economic power to capture the government and undermine democracy by lobbying. Many scholars and activists have urged the use of antitrust law to combat this threat, leading a “political antitrust” movement that advocates explicit incorporation of political considerations into antitrust enforcement. Political antitrust has sparked great debate not only in academic circles but also among policymakers.

But the debate has been largely data-free; there is little systematic evidence on whether increased economic concentration leads to democratic harms in established democracies. This Article seeks to fill that gap, bringing systematic data analysis to bear on the issue for the first time. We make three contributions. First, we create a comprehensive dataset on lobbying of the federal government, capturing nearly one million records over the past two decades. This data was drawn from the reports required by the Lobbying Disclosure Act as compiled by In Song Kim, to which we contributed by refining the coding, improving the matching between lobbying reports and industry and firm data, and adding new data. Second, we use our dataset to map lobbying patterns, focusing on the connection between economics
and politics. Third, we empirically test some postulates of political antitrust.

Our findings do not support the political antitrust movement’s central hypothesis that there is an association between economic concentration and the concentration of lobbying power. We do not find a strong relationship between economic concentration and the concentration of lobbying expenditure at the industry level. Nor do we find a significant difference between top firms’ and other firms’ allocation of additional revenues to lobbying. And we find no evidence that increasing economic concentration has appreciably restricted the ability of smaller players to seek political influence through lobbying. Ultimately, our findings show that the political antitrust movement’s claims are not empirically well-supported in the lobbying context. Our findings do not allay all concerns about transformation of economic power into political power, but they show that such transformation is complex and nuanced, and they counsel caution about reshaping antitrust law in the name of protecting democracy.

Reaching a Verdict: Empirical Evidence of the Crumbling Conventional Wisdom on Criminal Verdict Format

Avani Mehta Sood

Criminal jurors in American courts typically deliver their judgments through “general verdicts,” which announce only their legal conclusions of “guilty” or “not guilty.” An alternative format, the “special verdict,” would require jurors to confirm their findings of fact regarding each element of the applicable law before reaching a conclusion. Courts have long rejected the use of special verdicts in criminal cases, under the presumption that general verdicts better protect criminal defendants and their right to trial by jury. However, this procedural status quo and its underlying rationale have never been empirically examined—until now.

This Article presents the results of an original nationwide survey on criminal verdict format that comprehensively measured the perspectives of over 1,600 stakeholders in the American legal system: state and federal judges, prosecutors, criminal defense attorneys, law professors, criminal science experts, civil litigators, and jury-eligible lay citizens—with former criminal defendants, victims, and jurors also included in the sample. The data reveal that criminal case law’s longstanding position and presumptions on verdict format are strikingly misaligned with the views and intuitions of current legal stakeholders. The majority of stakeholder groups—including criminal defense attorneys and jury-eligible lay citizens—on average supported the use of special criminal verdicts and expected this format to benefit criminal defendants and jurors in various ways. Furthermore, even the only two stakeholder groups that on average supported the legal status quo in favor of general criminal verdicts—prosecutors and judges—did not subscribe to its rationale that special verdicts will disadvantage criminal defendants.

The survey’s findings call the criminal legal system’s status quo on verdict format into question by debunking the conventional wisdom on which it is based. The Article also draws upon the data to consider why the norm in favor of general criminal verdicts nonetheless persists. It concludes by identifying next empirical steps to qualitatively understand and experimentally test the legal and psychological implications of verdict format in criminal cases.

Notes

The Road to Optimal Safety: Crash-Adaptive Regulation of Autonomous Vehicles at the National Highway Traffic Safety Administration

Kevin M.K. Fodouop

Autonomous vehicles are now driving people around in cities from San Francisco to Phoenix. But how to regulate the safety risks from these autonomous driving systems (ADS) remains uncertain. While state tort law has traditionally played a fundamental role in controlling car crash risks, this Note argues that the development of novel data tracking and simulation tools by the ADS industry has led to a regulatory paradigm shift: By leveraging these tools for regulatory analysis, the federal National Highway Traffic Safety Administration (NHTSA) could iteratively adapt and improve its regulatory standards after each crash. While many scholars have advanced proposals for how state products liability can adapt to ADS crashes, this Note is the first to propose such a model of “crash-adaptive regulation” for NHTSA and to show that this model will prove superior to tort liability in controlling ADS crash risks. In presenting this new regulatory model, this Note engages with two rich theoretical debates. First, it compares the efficacy of tort liability and agency regulation in controlling ADS crash risks. Second, it evaluates whether ADS safety standards should be set at the federal level or at the state level. It concludes that ADS’ technical characteristics call for an agency regulatory scheme at the federal level and urges NHTSA to build the technological and operational expertise necessary to operate a crash-adaptive regulatory regime.

Quick Hearings as a Strike Against Bureaucratic Delay: An Alternative Administration Procedure for 10(j) Cases Before the NLRB

Max McCullough

The National Labor Relations Board (NLRB or Board) is charged with enforcing the keystone statute of U.S. labor law, the National Labor Relations Act (NLRA or Act), including its prohibition against employers’ firing workers in retaliation for union organizing. In a time of rising labor agitation, however, the NLRB’s procedures for remediating such alarmingly frequent discharges are woefully inadequate. This Note examines the perennially underutilized section 10(j) of the NLRA, which provides for injunctive relief in discriminatory discharge cases where the Board’s own slow-moving administrative procedures would defeat the purpose of the Act, and explains why current 10(j) procedures are plagued by delay and failure. It then proposes an alternative administrative procedure for 10(j) cases—including a delegation of prosecutorial discretion, quick evidentiary hearings, and review of Administrative Law Judge determinations by the Board—that would address many of the section’s shortcomings. The Note considers the salutary consequences of implementing this alternative procedure through notice and comment rulemaking before concluding by demonstrating how this procedure would enhance the Board’s enforcement of the Act. Ultimately this Note argues that section 10(j) can, through long-overdue procedural reform, become a robust guarantee of the statutory rights of workers that are at the heart of the NLRB.

Institutional Facts: Responding to Twombly and Iqbal in the District Courts

Benjamin Shand

More than a decade ago, the Supreme Court discarded its old notice pleading standard and replaced it with a “plausibility” standard in the landmark cases Bell Atlantic v. Twombly and Ashcroft v. Iqbal. A deluge of commentary followed, much of it critical of either the perceived informational imbalance that the standard created or the broad discretion that the decisions were understood to grant to district court judges. This Note identifies a pattern that appears to be emerging in the lower courts in which parties can satisfy their pleading burden by relying in part on “institutional facts”—that is, findings made by competent entities that implicate the factual allegations in the complaint. This Note argues that, as a matter of doctrine, this practice has yet to be recognized, but it should be applauded and encouraged as both intuitive and judicially tractable.