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Friday, May 29, 2009
Is "Business Litigation" a "Background in Business Law?"
Note: The initial version of this post mistakenly attributed the post I discuss below to Brian Tamanaha rather than to Bernard Harcourt. My apologies! I've revised it accordingly.
Anent the Sotomayor nomination, natch, Bernard Harcourt has an interesting and impassioned post at Balkinization taking David Frum to task for arguing that Sotomayor has only an "abstract and academic" experience of business law. Frum describes Sotomayor (and other Justices) as having a background only in "academia and government," and laments this as the general state of the current Supreme Court's experience. Harcourt points out that Sotomayor spent eight years as a business litigator. Frum's response to this, apparently, was that "Sotomayor's private-sector work was very far from business counseling of the kind that I described. She worked mostly on enforcing trademarks against counterfeiters." Harcourt considers this an inadequate response, and believes Frum's remarks about Sotomayor were simply dishonest.
Posted by Paul Horwitz on May 29, 2009 at 01:37 PM in Paul Horwitz | Permalink
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Posted by: sam | Nov 6, 2009 6:45:28 AM
I don't agree with Frum's main point, but I don't think it's fair to accuse him of hypocrisy for apparently not raising the lack of business experience in 2005 with respect to Alito and Roberts. Simply put, 2009 ain't 2005. We now live in a brave new world. I don't think anyone in 2005 believed that in 4 years the US Government would own 70 percent of GM, something like TARP would be enacted, Congress would propose taxing bonuses at 90%,e tc.
Posted by: Spittle | Jun 2, 2009 3:04:10 PM
IMHO, the least important area of the law a SCOTUS nominee might have is business law.
It takes a back seat, way back, to other substantitive areas, including criminal law and constitutional law. Perhaps it is in front of tort law, but not by much.
That is not to say that business law is unimportant to the world. Just that business law experience matters little to a SCOTUS nominee.
Posted by: Allan | Jun 1, 2009 9:42:16 AM
Prof. Horwitz writes:----
Second, and this is just a side-note, although Frum is now willing to criticize Sotomayor for what he apparently views as a lack of business experience, I wonder whether he was as public about criticizing Chief Justice Roberts and Justice Alito as nominees on the same grounds. If Frum is willing to insist on a distinction between counsel work and litigation, then surely he must also take the view that Roberts's experience as a private appellate litigator also resulted in only an "abstract and academic" experience of business law. Alito had no private experience after law school. Was Frum equally public in lamenting Alito's nomination -- or more so, since Alito didn't even have the degree of private-sector experience that Sotomayor had?
----end quote---
I don't know what Frum had to say in 2005, but in both of the stories to which Harcourt links, Frum makes precisely that point
---begin quote from Marketplace broadcast---
Yet the current court justices have strikingly little experience as business lawyers. Chief Justice John Roberts has worked for business clients, but always as an appellate litigator -- that is, as a kind of after-the-fact freelance pleader, not a counselor who navigates a company's way through the tangles of existing law. Only one justice, John Paul Stevens, has done much advising of business clients -- half a century ago. And Stevens is the most senior member of the court, aged almost 90.
---end quote---
---begin quote from Frum's blog---
I did a broadcast yesterday about Sotomayor for "Marketplace."
Main point: Sonia Sotomayor reaffirms the Supreme Court's 8 to 1 bias against lawyers with a background in business law. Only John Paul Stevens has any extensive record as an adviser to firms. (Back in the 1950s and 1960s, he was an eminent defendant-side antitrust lawyer.) John Roberts did appellate work for business clients, but was not a counselor. Anthony Kennedy was a lawyer-lobbyist in Sacramento for a very few years in the middle 1960s. Otherwise: all have backgrounds in academia and government. Now one more.
---end quote---
I agree that Mr. Frum should probably elaborate on why he views Sotomayor's background as "abstract and academic." The criticism of his comments seems otherwise over the top and a bit hysterical.
Again, I don't know what he said in 2005. If people want to play that game, then I should ask where all of the empathy-mongers were when the liberals were trashing Miguel Estrada.
Posted by: krs | May 31, 2009 4:03:37 PM
Alkali, the complaint isn't that Sotomayor's lack of business-law experience makes her less qualified than the other justices, but rather that this is a general deficiency on the Court which ought to be remedied when there are openings such as this one.
It's bizarre to think about evening wanting to put a transactional attorney on the Court, though. Whatever is gained in first-hand understanding of the corporate world would be more than offset by the fact that transactional attorneys don't really do "law" in the way that litigators do.
Posted by: joe. | May 30, 2009 5:05:12 PM
W/r/t Alkali's question, the closest I can come (which is not that close) is that Zoe Baird (who might have been a plausible S Ct nominee if the AG thing had worked out) was GC of Aetna and Larry Silberman of the D.C. Circuit (rumored in some circles to have been on the short list for what turned out to be the Souter nomination) had pre-judicial experience as GC of a bank. I recall a long-ago conversation w/ Judge Silberman in which he indicated that that experience had given him what he considered a valuable perspective that a more typical pre-judicial career as a successful litigator might not have provided. Maybe a more important question is how many of the currently sitting federal circuit judges (probably over 200, at least if you include senior judges) have meaningful transactional or in-house experience and if that percentage seems too low what "cultural" changes in the judicial selection process might increase it.
Posted by: J. W. Brewer | May 30, 2009 4:24:47 PM
Query:
1) Has any lawyer with substantial in-house or transactional experience been nominated, or considered for nomination, to the U.S. Supreme Court within recent memory? (The closest I can think of is Justice Thomas, who was in-house at Monsanto for three years in the late 1970s as a young lawyer working on environmental and regulatory issues. Justices Lewis Powell and Byron White did both transactional and litigation work back in the days when lawyers at top firm could be generalists in that way, but that is pushing the limits of "nominated within recent memory.")
2) If the answer is no, isn't it odd to suggest that Judge Sotomayor might be deficient in not having such experience?
Posted by: alkali | May 29, 2009 5:01:50 PM
I beg to differ with the, as usual, muddle headed Mr. Frum.
MBA students study business cases. The case study method is supposed to be a great way to learn about business. No MBA case study is as thorough or as in depth as the case study called business litigation. In any significant case, you get deep into why the deal was done and why it failed, and you spend a lot of time interviewing and preparing for depositions the business decision makers.
Then there is settlement. Almost all cases settle, and many cases reach a creative business settlement rather than a pure split the risk money settlement. Litigation lawyers are deeply involved in crafting and evaluating those settlements.
As for business counseling, it's overrated. It's so easy to walk into a room, bloviate and opine, and walk out without ever really taking ownership or responsibility for what happens next.
My background: ten years of litigation, ten years of being a CEO. Business litigation was great preparation for the business role.
Posted by: anonymous | May 29, 2009 4:03:57 PM
Having been both a litigator and an in-house lawyer, I'd say Frum has a point on the nature of business litigation experience, although he overstates it. I found that business counseling is an entirely different thing from representing business in litigation but that litigation was a far better preparation for it than most people would imagine. I've got my own set of questions about Judge Sotomayor but I don't know that lack of business experience is one of them.
As a side question, how many recent members of the Court have business counseling experience? I can think of Justice Blackmun. I guess I don't know enough about the private practice experience of others, but I'd guess that most have not had that experience.
Posted by: Rick Esenberg | May 29, 2009 1:58:55 PM
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