Penn Law Journal: a Solution for Underwater States
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et al.: Penn Law Journal: A Solution for Underwater States UNIVERSITY OF PENNSYLVANIA SUMMER 2012 VOLUME 47, NUMBER 1 A SOLUTION FOR UNDERWATER STATES ALSO: LEO STRINe’S BALANCING ACT THE MINI-MAJOR GENERAL GOLKIN HALL’s SUPREME MOMENT Published by Penn Law: Legal Scholarship Repository, 2014 1 Penn Law Journal, Vol. 47, Iss. 1 [2014], Art. 1 As a full house at Irvine Auditorium looks on, Supreme Court Justice Sonia Sotomayor fields a question from the audience. Prompted by Penn Law Dean Michael A. Fitts, she talked about her journey to the highest court in the land. Justice Sotomayor came to Penn to participate in the dedication of Golkin Hall. Please go to P. 40 for more pictures from the weeklong celebration. Cover Illustration: © Phil Foster Design by: Emily Zuwiala https://scholarship.law.upenn.edu/plj/vol47/iss1/1 2 et al.: Penn Law Journal: A Solution for Underwater States PENNLAW JOURNAL FEATURES A Solution for Underwater States 16 BY DAVID A. SKEEL Led by California, a handful of states are bleeding red ink while others wrestle with persistent deficits. And this is a major problem since states are required to balance their budgets. Penn Law Professor David A. Skeel suggests states follow corporate practice and declare bankruptcy. But first Congress has to pass a new chapter in bankruptcy law, which is exactly what he is calling on legislators to do. Leo Strine’s Balancing Act 22 BY RICK SCHMITT The Delaware Chancery Court rules the world of corporate law. Leo Strine L’88 runs the Delaware Chancery Court. That makes Strine a powerful figure in boardrooms across America. As Chancellor, Strine can make or break mergers, block buyouts, and award enormous sums to plaintiffs - and he does all of this with trademark humor. The Mini-Major General 26 BY BILL WINE Peter Schlessel L’86 is living proof that your avocation can be your vocation. Peter is such a lover of movies that he and his wife try to take in a double feature (remember those?) every 16 Saturday. It is good to know the market, especially when you are the chief executive of a successful movie studio. A Supreme Moment 40 It was a blowout of epic proportions. The weeklong dedication of Golkin Hall featured a healthy dash of pomp and fun, with a Penn a cappella singing group, photo ops with The Goat, stirring tributes and good vibes all around. We saved the best for last: Supreme Court Justice Sonia Sotomayor, who filled Irvine Auditorium with eloquent words, met with students and helped cut the ribbon on a new era. 22 DEPARTMENTS A Message from the Dean 3 The Brief 4 Faculty News and Publications 30 Bold Ambitions 38 Class Action 36 Alumni Briefs 41 In Memoriam 57 Case Closed 68 26 Published by Penn Law: Legal Scholarship Repository, 2014 3 Penn Law Journal, Vol. 47, Iss. 1 [2014], Art. 1 PENN L AW JOURNAL SUMMER 2012 VOLUME 47, NUMBER 1 EORDIT Larry Teitelbaum DGESI N Warkulwiz Design Associates CI ONTR BUTING WRITERS Walter Campbell Jenny Chung C’12, G’12 Stephen Frank Nicole Greenstein C’14 Rick Schmitt Bill Wine PHOTOGRAPHY CREDITS Greg Benson Ed Eckstein Sameer A. Khan assISTANT EDITOR Rachel Vigoda VIEW THE PENN LAW JOURNAL ONLINE AT www.law.upenn.edu/alumni/alumnijournal SUBMIT YOUR NEWS for publication with A Quick Click KEEP IN TOUCH Send news and photos by traditional mail and e-mail to the attention of the Editor. CORRECTIONS Every effort has been made to ensure accuracy in this Journal. We offer our sincere apologies for any typographical errors or omissions. Please forward any corrections to the attention of: Larry Teitelbaum, Editor, Penn Law Journal University of Pennsylvania Law School 3501 Sansom Street, Philadelphia, PA 19104-6204 TELEPHONE (215) 573 7182 FAX (215) 573 2020 EORDIT E-MAIL [email protected] LAW SCHOOL WEBSITE www.law.upenn.edu The University of Pennsylvania values diversity and seeks talented students, faculty and staff from diverse backgrounds. The University of Pennsylvania does not discriminate on the basis of race, sex, sexual orientation, religion, color, national or ethnic origin, age, disability, or status as a Vietnam Era Veteran or disabled veteran in the administration of educational policies, programs or activities; admissions policies; scholarship and loan awards; athletic or other University administered programs or employment. Questions or complaints regarding this policy should be directed to: Executive Director, Office of Affirmative Action and Equal Employment Programs, 3600 Chestnut Street, Sansom Place East, Suite 228, Philadelphia, PA 19104-6106 or (215) 898 6993 (Voice) or (215) 898 7803 (TDD). https://scholarship.law.upenn.edu/plj/vol47/iss1/1 4 et al.: Penn Law Journal: A Solution for Underwater States A MESSAGE FROM THE DEAN A FEW MONTHS AGO I attended an ABA conference in San Diego. On the trip I read about the $9 billion budget hole facing California, which has the largest state economy in the United States and a much bigger gross domestic product than Greece. California also holds the dubious distinc- tion of having the most serious deficit in the country and one that mirrors on a smaller scale the looming fiscal crisis hanging over the federal government. Unfortunately, California is not alone. Up to 30 states have to figure out, if they haven’t done so already, how to close significant shortfalls and balance their budgets, according to the Center on Budget and Policy Priorities. Penn Law Professor David A. Skeel offers a way out for governors and legislators who no longer MICHAEL A. FITTS Dean and Bernard G. Segal have the luxury of turning to the federal government for bailouts because the stimulus money that Professor of Law kept states afloat is nearly gone. He makes the case in this issue’s cover story that we need a new state bankruptcy law. David has the credentials and the skill to make that argument. In addition to being a scholar in the area of corporate law, he is a prolific author who brings life to arcane subjects. He explains that the law would give states filing for bankruptcy the power and permission to restructure debt by rewriting union contracts and possibly renegotiating existing pension benefits. To him, the benefits are clear. In his view, states are the new frontier in “too big to fail.” A new state chapter in U.S. bankruptcy law, he argues, would reduce the federal obligation and save taxpayers money. David’s piece is an interesting and thought-provoking read. I commend it to you. Leo Strine L’88, the new chancellor of the Delaware Court of Chancery, does not have the power to enact state bankruptcy laws, but he does wield enormous influence in the area of cor- porate law, given the number of businesses that incorporate in Delaware. Leo, who is the subject of a long profile, takes very seriously his role as a fair arbiter of the law. He takes on executives, directors and shareholders, often with pointed commentary. Leo, a former student of mine, has built a national reputation as a thoughtful and powerful figure in corporate law. He may not be able to write bankruptcy laws, but he is shaping the corporate landscape. And you, our wonderful alumni, are shaping the future of Penn Law School. As I hope everyone knows by now, we recently held a grand dedication of Golkin Hall. It is remarkable that we managed to raise millions of dollars for the new building during the worst economic downturn in generations. We were able to do so because so many alumni saw the need and lent support. The fruits of your efforts were seen in April, when we welcomed Justice Sonia Sotomayor to Penn Law School, capping off a weeklong celebration. It was my proudest moment as dean. Thank you. Published by Penn Law: Legal Scholarship Repository, 2014 PENN LAW JOURNAL SUMMER 2012 3 5 Penn Law Journal, Vol. 47, Iss. 1 [2014], Art. 1 THE BRIEF NEWS Three Recent Graduates Receive Prestigious Fellowships R ECENT PEnn Law SCHOOL GRADUATES Marsha Chien LPS’10, L’10, Jesse Krohn GED’08, L’11, and Kristin Bochicchio L’12 are the recipients of national fellowships which will support their work in public service. Marsha Chien and Jesse Krohn are among the Class of 2012 Penn Law Skadden Fellows, which are awarded each year by the Skad- den Fellowship Foundation to graduating law students “who Tops List of Large Law wish to devote their professional lives to the poor, the elderly, the homeless and the disabled, as well as those deprived of their Firm Placements civil or human rights,” according to the Foundation. Separately, Kristin Bochicchio has been named a 2012 PEW nn LA GRADUATES are big with big law firms. Accord- ing to a recent report in the National Law Journal, nearly 57 Equal Justice Works Fellow, a two-year program in which percent of the Class of 2011 was hired by the nation’s largest fellows design unique projects that … address domestic vio- law firms. This places Penn Law School No. 1, ahead of North- lence, homelessness, community economic development, immi- western, Columbia, Harvard, and Stanford. gration, civil rights, juvenile justice, employment rights, health The top ten also included the University of California-Berke- care, consumer fraud, and environmental justice,” according to ley, University of Chicago, Duke, New York University, and the the organization. University of Virginia. Marsha Chien will serve The National Law Journal also ranked Penn Law the best as a Skadden Fellow at the valued law school. The calculation is based on tuition prices and Legal Aid Society-Employ- the percentage of students who get jobs at the top 250 law firms.