Entrepreneurial Litigation: Its Rise, Fall, and Future

Marc Notes: Includes bibliographical references and index.; Uniquely in the United States, lawyers litigate large cases on behalf of many claimants who could not afford to sue individually. In these class actions, attorneys act as risk-taking entrepreneurs, effectively hiring the client rather than acting as a client's lawyer. And because class litigation aggregates many claims, defendants object that it amounts to legalized extortion. Review Quotes: Jack Coffee is "the" leading scholar on the array of issues that surround representative shareholder litigation. This book builds upon his decades of scholarship and engagement. Central to the rewards awaiting the reader is the rich understanding of how litigants incentives have changed over time so that the once lofty image that cast the representative suit as being the private attorney general now stands substantially qualified. His insightful and balanced analysis of the challenges that surround such suits provides a solid foundation on which reform of the representative suit can occur. The book concludes with an international perspective and also offers an agenda for reform to preserve and strengthen, but also to constrain the representative suit.--James D. Cox, Duke University School of Law"Review Quotes: Professor Coffee s book is comprehensive, well-written, original, and fun to read. He covers enormous ground, and the book should attract a wide and diverse audience interested in complex litigation, including securities and mass torts.--Linda J. Silberman, New York University School of Law"Publisher Marketing: Uniquely in the United States, lawyers litigate large cases on behalf of many claimants who could not afford to sue individually. In these class actions, attorneys act typically as risk-taking entrepreneurs, effectively hiring the client rather than acting as the client s agent. Lawyer-financed, lawyer-controlled, and lawyer-settled, such entrepreneurial litigation invites lawyers to sometimes act more in their own interest than in the interest of their clients. And because class litigation aggregates many claims, defendants object that its massive scale amounts to legalized extortion. Yet, without such devices as the class action and contingent fees, many meritorious claims would never be asserted. John Coffee examines the dilemmas surrounding entrepreneurial litigation in a variety of specific contexts, including derivative actions, securities class actions, merger litigation, and mass tort litigation. His concise history traces how practices developed since the early days of the Republic, exploded at the end of the twentieth century, and then waned as Supreme Court decisions and legislation sharply curtailed the reach of entrepreneurial litigation. In an evenhanded account, Coffee assesses both the strengths and weaknesses of entrepreneurial litigation and proposes a number of reforms to achieve a fairer balance. His goal is to save the class action, not discard it, and to make private enforcement of law more democratically accountable. Taking a global perspective, he also considers the feasibility of exporting a modified form of entrepreneurial litigation to other countries that are today seeking a mechanism for aggregate representation."

Contributor Bio:  Coffee, John C, Jr John C. Coffee, Jr., is the Adolf A. Berle Professor of Law and Director of the Center on Corporate Governance at Columbia Law School.