Faculty News 32 - College of Law

Bloomberg quotes Brubaker on roll-ups

Lenders to bankrupt firms are increasingly insisting upon controversial contract clauses known as roll-ups, which boosts investments by moving existing debt to the front of the repayment line. This kind of contract structure prioritizes existing debt repayment, potentially limiting the resources available for lower-ranking creditors. Despite their controversial nature, bankrupt firms and judges overseeing them are compelled to accept roll-ups to avoid complete closure. Although not a new tactic, roll-ups are becoming more prevalent, as seen in the Chapter 11 cases including Bed Bath & Beyond, Vice Media, and a significant deal with Rite Aid. Speaking with Bloomberg, Professor Ralph Brubaker pointed to the dominance of hedge funds and financial firms in negotiating these agreements and suggested rules prohibiting roll-ups might be necessary.

Read the full article on from Bloomberg Law.

Lawless critical of judge shopping in Wall Street Journal article on WeWork bankruptcy

WeWork’s recent Chapter 11 filing in New Jersey is the seventh large bankruptcy filing in the state since the previous November, as corporations increasingly choose the state as the destination to restructure their debt. New Jersey’s share of large bankruptcies nationwide has risen to 5%, partly due to the stability provided by consistent judges in New Jersey and partly due to rulings attractive to corporations. Professor Robert Lawless told the Wall Street Journal changes may be needed to address the perception that companies can freely choose where to file their bankruptcy petitions. “I can understand the reasons why companies are going to New Jersey, but I still think this rampant forum shopping undermines confidence in the courts,” he said. “Something needs to be done.”

Read the full article from the Wall Street Journal.

Lawless and Brubaker sign letter urging abolition of Texas bankruptcy court panel

A dozen academics, including Professors Ralph Brubaker and Robert Lawless, are urging the United States Bankruptcy Court to abolish the two-judge panel on a south Texas bankruptcy court that has earned a reputation as a key venue for large bankruptcy cases. The letter from the legal scholars to Chief Judge Eduardo V. Rodriguez comes as a result of media reports about undisclosed relationships between Judge David R. Jones and parties that appeared in his Texas bankruptcy court. Jones was the chief judge who created the two-judge panel to oversee complex cases, which was established in part because of “judge shopping” by companies within Texas’s jurisdiction. The two-judge panel became a target for the same practices, however, leading to “controversy and criticism for undermining public confidence in the chapter 11 system,” as the letter to Judge Rodriguez states.

Read the full letter to Judge Rodriguez urging the abolition of the Texas two-judge panel system.

Read a Law360 article quoting Professor Lawless about the controversy in the Texas court.

Lawless speaks to Philadelphia Inquirer about bankruptcy protection and student loans

When student loan payments resumed in October, an op-ed in the Philadelphia Inquirer proposed a solution to help debtors: Restore bankruptcy rights to student loans. To make his case, the author of the piece spoke to bankruptcy expert Professor Robert Lawless about the history of bankruptcy protection for student loans. Lawless explained that although federal student loans are not currently permitted in bankruptcy filings, legislation that restores these rights would not contravene existing law.

“Any law passed by both houses of Congress and signed by the president can amend the Bankruptcy Code,” said Lawless.

Read the full article.

Finkin files amicus brief in tenure and academic freedom case at Massachusetts Supreme Court

Professor Matthew Finkin submitted an amicus brief to the Massachusetts Supreme Court in Wortis v. Trustees of Tufts College, a case that is expected to define the legal content of tenure and academic freedom in American higher education. Writing for amici, Finkin argues that their brief shows that “(1) Tufts’ tenure and academic freedom policies are contractually binding; (2) the economic security tenure guarantees precludes reductions in salary save for conditions not present here; and (3) the application of Tufts’ compensation plan to incumbent tenured professors breaches their contracts of tenure and compromises their academic freedom.” Amici urge the Court to rule in favor of the plaintiffs.

Read the full amicus brief.

Lawless quoted in Reuters series on lasting effects of slavery

In their series on how the effects of slavery remain with us today, Reuters spoke to Professor Robert Lawless about the history of bankruptcy. The series, titled “Slavery’s Descendants” examines how slavery, the Jim Crow era, and racial discrimination put two different families (one white, one black) on very different economic paths. For part four, “American Dreams,” Lawless provides his expertise to explain racial discrepancies in bankruptcy cases, which have tended to have worse outcomes for Black debtors than for white debtors.

Read the full article on Reuters’ website.

Jones speaks at conference on protecting children online

Professor Faye Jones was part of a select group of individuals asked to participate the in the NOVA Law International Conference on “Protecting children online: the role of data protection.” Held in late September at NOVA University Lisbon, the “Protecting children online” conference was organized by The Observatory of Personal Data Protection, whose institutional goal is updating and modernizing the rules for protection of personal data. Jones was part of a panel discussion titled “International and European perspectives: can data protection law protect children online?”

Robbennolt delivers keynote speech at ESELS Conference

At the 2nd annual conference of the European Society for Empirical Legal Studies, Professor Jennifer Robbennolt delivered the opening keynote lecture. Held in Warsaw, Poland, the conference brought together an international audience of empirical legal scholars to share research on the assumptions, the functioning and the impact of the law. Robbennolt was the third to speak at the conference, providing a keynote speech after opening remarks from the hosts. Her speech, “Apologies, Remorse, and Amends: Empirical Legal Studies Across Domains and Disciplines,” addressed the role of apologies in remedying harm and the research she has done in this area.

Mazzone writes op-ed on upcoming SCOTUS term

The First and Second Amendments, federal government powers, the prosecution of former President Donald Trump, and ethics are among the topics Professor Jason Mazzone is anticipating will dominate the upcoming Supreme Court term. Writing at the News-Gazette, Mazzone highlights the cases and issues that could prove monumental. In his opinion piece, he goes through high- and lower-profile cases that “might sound nerdy” but “could significantly impact the lives of many Americans.”

Read the full editorial on the News-Gazette website.

Sherkow delivers lecture at CMMC Symposium

Professor Jacob Sherkow travelled to Cologne, Germany, in September to deliver a lecture as part of the CMMC Symposium in Molecular Medicine. The Symposium was titled “From Concepts to Clinic: a New Era of Nucleic Acid Therapeutics,” and aimed to provide attendees with an in-depth understanding of the chemical, biological and clinical challenges in the field. Sherkow presented a speech titled “Nucleic Acid Platforms: US and EU regulatory challenges,” which was part of the preclinical and clinical application portion of the proceedings.