THE QUARTERLY NEWSLETTER OF THE AMERICAN LAW INSTITUTE VOLUME 43 NUMBER 2 SPRING 2021 THE DIRECTOR’S LETTER BY RICHARD L. REVESZ The Continuing Support of Our Founding Donor The preparations underway for our 100th anniversary give us a welcome opportunity to take stock of the many contributors who have enabled our extraordinary successes over the past century. Our very first benefactor was January and February the Carnegie Corporation, the philanthropic organization established by Andrew Carnegie 2021 Council Meetings to “promote the advancement and diffusion of knowledge and understanding.” A century ago, the Carnegie Corporation’s backing Update underwrote the first Restatement series. This year, the Carnegie Corporation made a generous At its meetings on January 21, 22, and February 25, 2021, the Council donation of $1 million in support of our work reviewed and discussed Council Drafts of eight projects and approved as we prepare to officially launch our 100th drafts and portions of drafts as listed below. All approvals are subject to the Anniversary campaign. discussion at the meeting and the usual editorial prerogative. All projects except Torts: Concluding Provisions are on the agenda for the Institute’s The story of the Carnegie Corporation and 2021 virtual Annual Meeting scheduled on May 17-18 and June 7-8. See ALI actually begins prior to the Institute’s pages 6-9 for additional details on this year’s Annual Meeting. founding. Believing that much of American law was unnecessarily complicated, uncertain, and Compliance and Enforcement for Organizations antiquated, leading legal academics, judges, At its January meeting, the Council approved Council Draft No. 5, which and lawyers formed a Committee on the contained Chapter 4 on Compliance Risk Management and Topic 4 of Establishment of a Permanent Organization Chapter 6 on Corporate Civil and Administrative Enforcement Policy, as for the Improvement of the Law in May 1922. well as new, revised, and deleted definitions relating to Chapter 4 and new Notably, the committee’s chairman was material in two previously approved Sections, 6.05 and 6.06. The Council prominent New York lawyer Elihu Root, who also approved the project’s new title: Principles of the Law, Compliance had succeeded Andrew Carnegie as president and Enforcement for Organizations. of the Carnegie Corporation from 1919-1920 and remained on its board of trustees. continued on page 4 The Committee determined that it should prepare a report on a new organization to address the “general dissatisfaction with the administration of justice.” The Carnegie Corporation approved a $25,000 grant to fund the initiative. This support enabled the Committee to assemble two groups that INSIDE: ANNUAL worked through the fall of 1922: a group of MEETING PREVIEW Reporters developed proposals that were then carefully critiqued by a group of advisers (at SEE PAGE 6 FOR INFORMATION ABOUT that time called “Critics”). As ALI’s Council THE 2021 VIRTUAL ANNUAL MEETING. continued on page 3 2 THE ALI REPORTER SPRING 2021 3 What’s New on Reasonably Speaking? THE DIRECTOR’S LETTER CONTINUED FROM PAGE 1 later explained, “The Committee could not have undertaken the of veterans returning to law practice after wartime military Challenges to the 2020 Election: work of preparing the Report without financial assistance. It service. Today, ALI CLE continues to provide quality continuing the Solicitors’ Perspective was a work requiring study, constructive thought, painstaking professional education to lawyers throughout the United States. criticism and thorough discussion.” Overall, from 1922 to 1948, the Carnegie Corporation committed On this episode, we are joined by three former U.S. Solicitors General On February 23, 1923, the Committee presented its findings to grants totaling more than $2.7 million to ALI, allowing for the who spent months preparing as best they could for what they anticipated prominent members of the bench, bar, and academy, including establishment of the Institute and for the production of its most would be an attack on the election outcome. Chief Justice and former U.S. President William Howard seminal early work. In addition to direct financial support, Moderated by ALI President David F. Levi, the panelists are: Taft, as well as Associate Justices Oliver Wendell Holmes Jr. the Carnegie Corporation also worked to put ALI’s finances and Edward Terry Sanford. The report outlined the mission, on a secure footing. For example, the Corporation supplied a • Walter E. Dellinger, O’Melveny; Duke Law School organizational structure, and process that continue to guide consultant to survey the Institute’s activities and pressed its • Donald B. Verrilli, Munger, Tolles & Olson LLP Clockwise from top left: David F. Levi, Donald B. Verrilli, ALI’s work today. leadership to make the work self-sustaining. Walter E. Dellinger, and Seth P. Waxman • Seth P. Waxman, WilmerHale But the fledgling new organization needed money to bring ALI also benefitted from Andrew Carnegie’s philanthropy this program to fruition, and it again turned to the Carnegie through other avenues. In particular, the Carnegie Endowment The former solicitors general came to be known as SG3 by the Biden Corporation. In requesting support, the Council pointed to “the for International Peace provided ALI $5,000 during World War II campaign. The team, coordinated by Mr. Waxman, prepared for three labor, time [and] expense involved in the restatement of the law” for work on an International Bill of Rights, which would in turn main scenarios: how the executive branch might use its power to disrupt and suggested that the Restatements would do for American shape the 1948 Universal Declaration of Human Rights. The the election process; what state legislatures or governors might do to law what Justinian had done for Roman law. Impressed Carnegie Endowment also helped to fund a translation of the delay or circumscribe the election or to discount certain categories of with the Committee’s vision and with the legal profession’s Restatement of Conflict of Laws into French so that foreign votes; and what might happen after the election with regard to challenges support for the new endeavor—and no doubt encouraged legal scholars could benefit from ALI’s work. This work planted to electoral college votes or certification of ballots by the states. by Elihu Root’s support for the initiative—in April 1923 the the seeds of a global outlook that has since blossomed with In the episode, Mr. Waxman explains how this enormous task could not Carnegie Corporation approved an initial grant of $1,075,000 projects such as the Principles of Transnational Civil Procedure, have been done without the tireless efforts of countless volunteer lawyers, to be distributed over ten years. Along with the $3,111.46 left published in collaboration with UNIDROIT in 2006, and our over from the original $25,000, this grant funded the first ongoing Principles for a Data Economy project, which is being “I think it’s terribly important for the public to recognize the degree of Restatements of the Law in Agency, Conflict of Laws, Contracts, conducted jointly with the European Law Institute. sacrifice and real devotion that literally hundreds of volunteer lawyers and Torts. Today, we continue to build on the work made possible through made over the course of those nine months. I can speak to the lawyers and REASONABLY SPEAKING the dozens of teams that I was trying to coordinate. We’re talking about Work on these Restatements progressed more quickly than the generosity of the Carnegie Corporation during ALI’s early people whose names are never going to get a platform like we did, but they NOMINATED BY THE PUBLISHER ALI had expected, however, and the Institute wanted to begin years. My Winter 2020 Director’s Letter showed that even today spent hundreds of hours as pure volunteers, no credit with their law firms, PODCAST AWARDS Restatements in other areas of the law. In 1926, the Carnegie the Supreme Court regularly cites the early Restatements funded nothing to count toward anything else other than trying to do the right Corporation agreed to speed up disbursement of the original directly through the Carnegie Corporation’s original series of Reasonably Speaking has been included on thing for representative democracy. And I just wished there were a better grant to allow ALI to continue its existing work while also taking grants, and of course we have continued to update this work in the shortlist of nominees for “Best Hobbies way that we could honor the people who made those sacrifices in an era up new projects in Judgments, Property, Restitution, Security, our subsequent Restatement series. We have also taken up new & Special Interest Podcast” by The Publisher of COVID. Where many of them are young lawyers working at home with and Trusts. But progress continued to outpace ALI’s budget, and areas of the law not formerly considered for restatement such Podcast Awards 2021. The winners will be spouses at home and their children at home and a full plate of law firm ALI turned to the Carnegie Corporation several more times. The as Restatements on The Law of American Indians, Children revealed in a virtual celebration on April 21. clients to represent, and still spending dozens of hours every week doing Corporation came to the Institute’s aid, awarding an additional and the Law, and Copyright, as well as Principles projects on this. That was another aspect of the dream come true part.” The Publisher Podcast Awards are a celebration $249,290.40 in February 1930, $232,987.50 in March 1933, topics like Government Ethics, Data Privacy, Policing, and of the best podcasts in the publishing and media $638,000.00 in October 1933, $95,000 in February 1940, and Election Administration.