Consequence-Based Arguments in Legal Reasoning: A Jurisprudential Preface to Law and Economics

Chapter
Part of the Law and Philosophy Library book series (LAPS, volume 98)

Abstract

One of the persistent problems surrounding the discipline of law and economics is the role of economic arguments in legal reasoning. The problem has been extensively discussed in the literature but has not been ultimately solved. The present paper is a contribution to this ongoing discussion. The argument goes as follows. First, I will argue that insights from law and economics, to the extent that they claim to be directly relevant for legal reasoning, should carry a jurisprudential preface that states that this very relevance is limited and conditional. Secondly, I will introduce the concept of consequence-based reasoning and show that the typical normative claims of law and economics based on economic efficiency can be interpreted as consequence-based arguments of a special kind. Finally, in the analytical core of the paper, the conceivability, feasibility and desirability of the judicial appreciation of general social consequences of legal decisions will be considered. Referring to the philosophical, jurisprudential and institutional dimensions of the issue I will argue that in a modern constitutional democracy the scope of consequence-based judicial reasoning is limited mainly by the expertise of courts. A more general implication of this analysis is that the impact of law and economics scholarship on law can only be understood through a close look at legal reasoning in general and consequence-based arguments in particular.

Keywords

Legal System Legal Reasoning Judicial Decision External Argument Legal Decision 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Bibliography

  1. Ackerman, Bruce A., ‘Law, Economics, and the Problem of Legal Culture’, in Duke Law Journal (1986), pp. 929 ff.Google Scholar
  2. Anderson, Bruce, ‘Context of Discovery, Context of Decision and Context of Justification in the Law’, in IVR encyclopedia (2009), http://ivr-enc.info/index.php?title=Context_of_Discovery,_Context_of_Decision_and_Context_of_Justification_in_the_Law (accessed on 4 April 2011)
  3. Arrunada, Benito and Andonova, Veneta, ‘Judges’ Cognition and Market Order’, in Review of Law and Economics, Vol. 4 (2008), pp. 665 ff.Google Scholar
  4. Barnett, Randy, ‘Foreword: Of Chickens and Eggs – The Compatibility of Moral Rights and Consequentialist Analyses’, in Harvard Journal of Law and Public Policy, Vol. 12 (1989), pp. 611 ff.Google Scholar
  5. Bell, John, ‘The Acceptability of Legal Arguments’, in Neil D. MacCormick and Peter Birks (eds.), The Legal Mind. Essays for Tony Honoré (Oxford, 1986), pp. 45 ff. (cited as: ‘Acceptability’)Google Scholar
  6. Bell, John, ‘Policy Arguments and Legal Reasoning’, in Zenon Bankowski et al. (eds.), Informatics and the Foundations of Legal Reasoning (Dordrecht, 1995), pp. 73 ff. (cited as: ‘Policy’)Google Scholar
  7. Breyer, Stephen, Economic Reasoning and Judicial Review (Washington, 2004)Google Scholar
  8. Burton, Steven J., ‘Comment on Professor Patterson’s Pseudo-Debate over Default Rules in Contract Law’, in Southern California Interdisciplinary Law Journal, Vol. 3 (1993), pp. 303 ff.Google Scholar
  9. Cane, Peter, ‘Consequences in Judicial Reasoning’, in Jeremy Horder (ed.), Oxford Essays in Jurisprudence, Fourth Series (Oxford, 2000), pp. 41 ff.Google Scholar
  10. Coles, Christina, Folgenorientierung im richterlichen Entscheidungsprozess. Ein interdisziplinärer Ansatz (Frankfurt a.M., 1991)Google Scholar
  11. Craswell, Richard, ‘Default Rules, Efficiency, and Prudence’, in Southern California Interdisciplinary Law Journal, Vol. 3 (1993), pp. 289 ff.Google Scholar
  12. Cserne, Péter, ‘Policy Arguments Before Courts: Identifying and Evaluating Consequence-Based Judicial Reasoning’, in Humanitas Journal of European Studies, Vol. 3 (2009), pp. 9 ff.Google Scholar
  13. Dau-Schmidt, Kenneth G., and Carmen L. Brun, ‘Lost In Translation: The Economic Analysis of Law in the United States and Europe’, in Columbia Journal of Transnational Law, Vol. 44 (2006), pp. 602 ff.Google Scholar
  14. Deckert, Martina Renate, Folgenorientierung in der Rechtsanwendung (Munich, 1995)Google Scholar
  15. Dhami, Mandeep K., ‘Psychological Models of Professional Decision Making’, in Psychological Science, Vol. 14 (2003), pp. 175 ff.CrossRefGoogle Scholar
  16. Dworkin, Ronald, Taking Rights Seriously (Cambridge MA, 1977)Google Scholar
  17. Eidenmüller, Horst, ‘Rechtswissenschaft als Realwissenschaft’, in Juristenzeitung 54 (1999), pp. 53 ff.Google Scholar
  18. Engel, Christoph, ‘The Impact of Representation Norms on the Quality of Judicial Decisions’, in MPI Collective Goods Preprints, No. 2004/13, available at SSRN: http://ssrn.com/abstract=617821
  19. Epstein, Richard A., Simple Rules for a Complex World (Cambridge MA, 1995)Google Scholar
  20. Farber, Daniel A., ‘Economic Efficiency and the Ex Ante Perspective’, in Jody S. Kraus and Steven D. Walt (eds.), The Jurisprudential Foundations of Corporate and Commercial Law (Cambridge MA, 2000), pp. 54 ff.Google Scholar
  21. Garoupa, Nuno and Thomas S. Ulen, ‘The Market for Legal Innovation: Law and Economics in Europe and the United States’, in Alabama Law Review, Vol. 59 (2008), pp. 1555 ff.Google Scholar
  22. Gazal-Ayal, Oren, ‘Economic Analysis of Law in North America, Europe and Israel’, in Review of Law & Economics, Vol. 3/2 (2007), Article 11Google Scholar
  23. Gigerenzer, Gerd and Engel, Christoph (eds.), Heuristics and the Law (Boston, 2006)Google Scholar
  24. Grechenig, Kristoffel and Gelter, Martin, ‘The Transatlantic Divergence in Legal Thought: American Law and Economics vs. German Doctrinalism’, in Hastings International and Comparative Law Review, Vol. 31 (2008), pp. 295 ff.Google Scholar
  25. Greenawalt, Kent, ‘Policy, Rights, and Judicial Decision’, in Georgia Law Review, Vol. 11 (1977), pp. 991 ff.Google Scholar
  26. Hadfield, Gilian K., ‘The Levers of Legal Design: Institutional Determinants of the Quality of Law’, in Journal of Comparative Economics, Vol. 36 (2008), pp. 43 ff.CrossRefGoogle Scholar
  27. Hage, Jaap, ‘Legal Reasoning’, in Jan Smits (ed.), Elgar Encyclopedia of Comparative Law (Cheltenham, 2006)Google Scholar
  28. Harris, Ron, ‘The Uses of History in Law and Economics’, in Theoretical Inquiries in Law, Vol. 4 (2003), pp. 659 ff.CrossRefGoogle Scholar
  29. Hensche, Martin, ‘Probleme einer folgenorientierten Rechtsanwendung’, in Rechtstheorie, Vol. 29 (1998), pp. 103 ff.Google Scholar
  30. Honoré, A. M., ‘Legal Reasoning in Rome and Today’, in Cambrian Law Review, Vol. 4 (1973), pp. 58 ff.Google Scholar
  31. Hooker, Brad, ‘Rule Consequentialism’, in Stanford Encyclopedia of Philosophy (2008), available at: http://plato.stanford.edu/entries/consequentialism-rule/
  32. Jolls, Christine and Sunstein, Cass R., ‘Debiasing Through Law’, in Journal of Legal Studies, Vol. 35 (2006), pp. 199 ff.CrossRefGoogle Scholar
  33. Kennedy, Duncan, ‘Legal Formality’, in Journal of Legal Studies, Vol. 2 (1973), pp. 351 ff. (cited as: ‘Formality’)CrossRefGoogle Scholar
  34. Kennedy, Duncan, ‘Form and Substance in Private Law Adjudication’, in Harvard Law Review, Vol. 89 (1976), pp. 1685 ff. (cited as: ‘Form’)CrossRefGoogle Scholar
  35. Kirchner, Christian, ‘Zur konsequentialistischen Interpretationsmethode: Der Beitrag der Rechtswissenschaft zur reziproken methodischen Annäherung von Ökonomik und Rechtswissenschaft’, in Thomas Eger et al. (eds.), Internationalisierung des Rechts und seine ökonomische Analyse. Festschrift für Hans-Bernd Schäfer zum 65. Geburtstag (Wiesbaden 2008), pp. 37 ff.Google Scholar
  36. Koch, Hans-Joachim and Rüßmann, Helmut, Juristische Begründungslehre. Eine Einführung in Grundprobleme der Rechtswissenschaft (Munich, 1982)Google Scholar
  37. Komesar, Neil K., Imperfect Alternatives. Choosing Institutions in Law, Economics, and Public Policy (Chicago, 1994)Google Scholar
  38. Kornhauser, Lewis A., ‘A Guide to the Perplexed Claims of Efficiency in the Law’, in Hofstra Law Review, Vol. 8 (1980), pp. 591 ff. (cited as: ‘Guide’)Google Scholar
  39. Kornhauser, Lewis A., ‘Wealth Maximization’, in Peter Newman (ed.), The New Palgrave Dictionary of Economics and the Law Vol. 3 (London, 1998), pp. 679 ff. (cited as: ‘Wealth’)Google Scholar
  40. Kornhauser, Lewis A., ‘Modelling Courts’, in Mark D. White (ed.), Theoretical Foundations of Law and Economics (Cambridge, 2008), pp. 1 ff.Google Scholar
  41. La Porta, Rafael et al., ‘The Economic Consequences of Legal Origins’, in Journal of Economic Literature, Vol. 46 (2008), pp. 285 ff.CrossRefGoogle Scholar
  42. Larouche, Pierre, ‘Ex Ante Evaluation of Legislation Torn Among its Rationales’, in Jonathan M. Verschuuren (ed.), The Impact of Legislation. A Critical Analysis of Ex Ante Evaluation (Leiden, 2009), pp. 39 ff.Google Scholar
  43. Luhmann, Niklas, Rechtsdogmatik und Rechtssystem (Stuttgart, 1974; cited as: Rechtsdogmatik)Google Scholar
  44. Luhmann, Niklas, ‘Legal Argumentation: An Analysis of Its Form’, in Modern Law Review, Vol. 58 (1995), pp. 285 ff. (cited as: ‘Legal Argumentation’)CrossRefGoogle Scholar
  45. Luhmann, Niklas, Risk. A Sociological Theory, trans. Rhodes Barrett (New Brunswick, 2005; cited as: Risk)Google Scholar
  46. Lübbe-Wolff, Gertrude, Rechtsfolgen und Realfolgen. Welche Rolle können Folgenerwägungen in der juristischen Regel- und Begriffsbildung spielen? (Freiburg, 1981)Google Scholar
  47. MacCormick, Neil, Legal Reasoning and Legal Theory (Oxford, 1978; cited as: Reasoning)Google Scholar
  48. MacCormick, Neil, ‘On Legal Decisions and Their Consequences: From Dewey to Dworkin’, in New York University Law Review, Vol. 58 (1983), pp. 239 ff. (cited as: ‘Decisions’)Google Scholar
  49. MacCormick, Neil, Rhetoric and the Rule of Law (Oxford, 2005; cited as: Rhetoric)Google Scholar
  50. MacCormick, Neil and Summers, Robert S., Interpreting Statutes. A Comparative Study (Aldershot, 1991)Google Scholar
  51. Note, ‘Dworkin’s “Rights Thesis”’, in Michigan Law Review, Vol. 74 (1976), pp. 1167 ff.Google Scholar
  52. Parker, Christine et al., ‘Introduction’, in Parker et al. (eds.), Regulating Law (Oxford, 2004), pp. 1 ff.Google Scholar
  53. Patterson, Dennis, ‘The Pseudo-Debate over Default Rules in Contract Law’, in Southern California Interdisciplinary Law Journal, Vol. 3 (1993), pp. 235 ff.Google Scholar
  54. Pfaff, John F. and Guzelian, Christopher P., ‘Evidence Based Policy’, in Fordham Law Legal Studies Research Paper No. 976376 (2007), available at SSRN: http://ssrn.com/abstract=976376
  55. Posner, Richard A., The Economics of Justice (Cambridge MA, 1981)Google Scholar
  56. Posner, Richard A., ‘The Future of the Law and Economics Movement in Europe’, in International Review of Law and Economics, Vol. 17 (1997), pp. 3 ff.CrossRefGoogle Scholar
  57. Posner, Richard A., How Judges Think? (Cambridge MA, 2008)Google Scholar
  58. Rachlinski, Jeffrey J., ‘A Positive Psychological Theory of Judging in Hindsight’, in Cass R. Sunstein (ed.), Behavioral Law and Economics (Cambridge MA, 2000), pp. 95 ff.Google Scholar
  59. Rubin, Paul H. (ed.), The Evolution of Efficient Common Law (Cheltenham, 2007)Google Scholar
  60. Rudden, Bernard, ‘Consequences’, in Juridical Review, Vol. 24 (1979), pp. 193 ff.Google Scholar
  61. Sajó, András, ‘How the Rule of Law Killed Hungarian Welfare Reform’, in East European Constitutional Review, Vol. 5/1 (1996), pp. 31 ff.Google Scholar
  62. Schauer, Frederick, Playing by the Rules. A Philosophical Examination of Rule- Based Decision-Making in Law and in Life (Oxford, 1991)Google Scholar
  63. Schiemann, Gregor, ‘Inductive Justification and Discovery. On Hans Reichenbach’s Foundation of the Autonomy of the Philosophy of Science’, in Jutta Schickore and Friedrich Steinle (eds.), Revisiting Discovery and Justification: Historical and Philosophical Perspectives on the Context Distinction (Dordrecht, 2006), pp. 23 ff.Google Scholar
  64. Searle, John, Speech Acts. An Essay in the Philosophy of Language (Cambridge, 1969)Google Scholar
  65. Sibony, Anne-Lise, Le juge et le raisonnement économique en droit de la concurrence (Paris, 2008)Google Scholar
  66. Sinnott-Armstrong, Walter, ‘Consequentialism’, in Stanford Encyclopedia of Philosophy (2006), available at: http://plato.stanford.edu/entries/consequentialism/
  67. Symposium ‘Economic Analysis in Civil Law Countries: Past, Present, Future’, in International Review of Law and Economics, Vol. 11 (1991), pp. 261 ff.CrossRefGoogle Scholar
  68. Teubner, Gunther, ‘Folgenkontrolle und responsive Dogmatik’, in Rechtstheorie, Vol. 6 (1975), pp. 179 ff. (cited as: ‘Folgenkontrolle’)Google Scholar
  69. Teubner, Gunther (Hrsg.), Entscheidungsfolgen als Rechtsgründe. Folgenorientiertes Argumentieren in rechtsvergleichender Sicht (Nomos, 1995; cited as: Entscheidungsfolgen)Google Scholar
  70. Tor, Avishalom, ‘The Methodology of the Behavioural Analysis of Law’, in Haifa Law Review, Vol. 4 (2008), pp. 237 ff.Google Scholar
  71. Ulen, Thomas S., ‘Courts, Legislatures, and the General Theory of Second Best in Law and Economics’, in Chicago-Kent Law Review, Vol. 73 (1998), pp. 189 ff.Google Scholar
  72. Verschuuren, Jonathan M. (ed.), The Impact of Legislation. A Critical Analysis of Ex Ante Evaluation (Leiden, 2009)Google Scholar
  73. Vogenauer, Stefan, Die Auslegung von Gesetzen in England und auf dem Kontinent (Tübingen, 2000)Google Scholar
  74. Wald, Patricia M., ‘Limits on the Use of Economic Analysis in Judicial Decision-making’, in Law and Contemporary Problems, Vol. 50 (1987), pp. 225 ff.CrossRefGoogle Scholar
  75. Wälde, Thomas W., Juristische Folgenorientierung. “Policy analysis” und Sozialkybernetik. Methodische und organisatorische Überlegungen zur Bewältigung der Folgenorientierung im Rechtssystem (Königstein, 1979)Google Scholar

Copyright information

© Springer Science+Business Media B.V. 2012

Authors and Affiliations

  1. 1.Tilburg Law School, Tilburg UniversityTilburgThe Netherlands

Personalised recommendations