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July 2, 2007
Supreme Court and Business
It was inevitable -- the Supreme Court is under attack by the popular press. The Court's decisions on social issues has upset the fair minded. One of the attacks is interesting; separate the Court from its political base by labeling it pro-business and anti-shareholder. Even conservatives are pro-shareholder. The attack is transparent. Shareholders as well as businesses are better off when frivolous litigation is harder to bring. The balance between legitimate and illegitimate lawsuits is important to shareholder value. The court, by adjusting the balance, if it is correct, is not anti-shareholder; it is pro-shareholder. There is no evidence that the Court is biased toward or corrupted by big business; such challenges after the public legitimacy of the court and should not be lightly made, especially to serve other social purposes. We have come through an era when many have come to believe that the court, like a kindly grandfather, is the repository of whatever is fair. Jurisdiction, separation and balance of powers, executive or legislative prerogative, federalism, and limited judicial factfinding are concepts for wimps; the court should declare what is just and fair and tell everybody else to stuff it. If the Court does not do what you think is fair (long statutes of limitation for discrimination actions), scream about it and impugn the integrity of the justices who do not do what you want. That's the ticket.
The Roberts court has a better sense of what the Court is and should be; now we need the press to educate the public not to mislead them.
July 2, 2007 in Musings | Permalink
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Comments
You are correct that the media often apply labels to decisions (e.g., "anti-shareholder") that oversimplify to the point of being potentially misleading. The implication that this comes from one side of business litigation disputes, however, is itself misleading. How often have we seen the press characterize court decisions allowing shareholder actions characterized as "anti-business -- despite the fact that, theoritically, allowing investor actions will promote business by encouraging investment?
Posted by: Franklin Gevurtz | Jul 2, 2007 8:44:14 PM
Appropriate but unpopular observation, thanks to the press, as you noted
Posted by: Jerry | Jul 3, 2007 8:24:06 AM










