Legal News & Events

Social Impact Bonds: Reducing Recidivism Through Incentives

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U.S. prisons are costly, overcrowded, and filling up with people who don’t belong there. This article suggests that a simple economic bonus system for reducing recidivism could change that.

Instead of encouraging incarceration, incentivize performance. How might the performance of the department of corrections be measured? By recidivism. A drop in reincarceration would offer evidence that well-performing prisons are not places that breed more criminals but provide rehabilitation instead.

Such performance incentives already exist. They are called “social impact bonds.” The first, issued in 2012 by Goldman Sachs (GS), is underway in New York City for $9.6 million. The money is going toward a four-year program to reduce reincarcation of juveniles at Riker’s Island prison. Goldman Sachs has a vested interest in the success of this program. If participants stop returning to jail at a rate of 10% or greater, Goldman will earn $2.1 million. If the recidivism rate rises above 10% over four years, Goldman stands to lose $2.4 million. In a recent report, the Brennan Center for Justice at NYU School of Law calls this a “bet on success … instead of using the typical model of privatization, in which private prisons generally bet on failure (i.e. the more prisoners, the better).”

See, What prisons can learn from Goldman Sachs

No Mercy for Pro Se Litigant

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No Mercy for Pro Se Litigant

Pro se parties normally enjoy relative leniency from the courts. But in a recent case before the U.S. Court of Appeals for the Third Circuit, an unrepresented party’s behavior was so egregious with respect to discovery obligations and compliance with court orders that the appellate court affirmed a more than $1 million default judgment, including punitive damages, against the pro se litigant. The ruling reinforces the importance of being responsive to opposing counsel and the court.

Judge fears $765 million concussion settlement not enough

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For months we have heard that the $765 million dollar proposed settlement between the NFL and over 4,500 retired players, who sued the league for hiding the dangers of concussions, is not enough. Today, Judge Brody agreed.

Judge Anita B. Brody of the United States District Court for the Eastern District of Pennsylvania rejected the proposed settlement because the league and the plaintiffs’ lawyers had not produced enough evidence to convince her that $765 million would cover the potential costs for 18,000 retirees over the 65-year life of the agreement.

“I am primarily concerned that not all retired N.F.L. football players who ultimately receive a qualifying diagnosis or their related claimants will be paid,” Brody wrote.

The players’ lawyers have said that economists and actuaries they hired said that there would be sufficient money available.

“Unfortunately, no such analyses were provided to me in support of the plaintiffs’ motion,” Brody said. “In the absence of additional supporting evidence, I have concerns about the fairness, reasonableness and adequacy of the settlement.”

See, NY Times Article.

From here, if nothing else, the initial payments to the retired players will be delayed. The NFL and the plaintiff’s lawyers will need to provide evidence showing that the proposed settlement amount is sufficient to pay the retired player’s claims. A Special Master will likely review the documents and advise the Judge of his/her opinion. If those efforts are unsuccessful, the two sides will be forced to rework the agreement by adding more money to the settlement or adjusting the payout categories.

Either way, there is still much work to be done in this groundbreaking case. The decisions made here “will provide a framework for the settlement of other concussion-related lawsuits, including those brought by former hockey players against the N.H.L. and by former college football players against the N.C.A.A.” Today’s order shows that Judge Brody is well aware of the implications and wants to ensure that this is done correctly.

‘Blurred Lines’ Lawsuit: Sony/ATV Settles With Marvin Gaye’s Family

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Breaking news in one of Hollywood’s top legal disputes of 2013. Definitely a step in the right direction for Sony/ATV, but they are not out of the woods just yet. Parties remaining will likely want to hear why Sony originally concluded that the songs were not similar.  See the link below for details.

‘Blurred Lines’ Lawsuit: Sony/ATV Settles With Marvin Gaye’s Family (Exclusive)