58 U. Chi. L. Rev. 1 (1991)
Plaintiffs' Attorney's Role in Class Action and Derivative Litigation: Economic Analysis and Recommendations for Reform, The; Macey, Jonathan R. ; Miller, Geoffrey P.

handle is hein.journals/uclr58 and id is 7 raw text is: University
of Chicago
Law Review
VOLUME 58 NUMBER 1 WINTER 1991
0 1991 by The University of Chicago
The Plaintiffs' Attorney's Role in Class
Action and Derivative Litigation: Economic
Analysis and Recommendations for Reform
Jonathan R. Maceyt and Geoffrey P. Millertt
Table of Contents
Introduction  .......................................        3
I. The Role of the Entrepreneurial Attorney .........        7
A.   The Economic Rationale for Class Action and
Shareholder's Derivative Litigation ...........      8
B.   The Role of the Entrepreneurial Attorney in
Class Action and Shareholder's Derivative Suits     12
1. The economic theory of agency and its ap-
plidation to standard litigation ...........    12
a)   M onitoring  .........................     13
b)  Bonding   ...........................       15
c)  Incentives  ..........................      17
d)  Residual loss ......................        19
2. Application of agency cost theory to class
and  derivative  cases .....................    19
t Professor of Law, The University of Chicago. The John M. Olin Foundation provided
financial support for Professor Macey's work on this project.
ft Kirkland & Ellis Professor of Law, The University of Chicago. The Sarah Scaife
Foundation provided financial support for Professor Miller's work on this project.
The authors would like to thank Albert W. Alschuler, Douglas G. Baird, John C. Coffee,
Jr., Richard A. Epstein, Michael W. McConnell, Thomas R. Meites, Daniel N. Shaviro, par-
ticipants at a University of Chicago Law School Work-in-Progress Workshop and a New
York University Faculty Workshop for helpful comments, and Amanda Newton and Erika
Samuels for valuable research assistance.

The       I

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