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Shopping for Judges: An Empirical Analysis of Venue Choice in the Bankruptcy Reorganization of Large, Publicly Held Companies

37 Pages Posted: 8 May 2000  

Theodore Eisenberg

Cornell University, Law School (Deceased)

Lynn M. LoPucki

University of California, Los Angeles (UCLA) - School of Law

Date Written: May 1998

Abstract

This article reports on an empirical study of forum shopping in all bankruptcy reorganization of large, public companies from 1980 through 1997 (273 cases). Principal findings include: (1) forum shopping increased from about 20% to between 50% and 86% over the period studied, (2) the principal destination for shopping changed abruptly from New York to Delaware about 1990, (3) Delaware achieved a virtual national monopoly on these kinds of case by 1996, before the Chief Judge in Delaware took the large cases from the Bankruptcy judges, (4) Delaware processes cases a little faster than other districts but the difference is not statistically significant, (5) shopping rates differ significantly for firms in different cities, suggesting that shopping is in significant part a rejection of particular courts. The study is based on data from Lynn M. LoPucki's Bankruptcy Research Database.

JEL Classification: K41, K42

Suggested Citation

Eisenberg, Theodore and LoPucki, Lynn M., Shopping for Judges: An Empirical Analysis of Venue Choice in the Bankruptcy Reorganization of Large, Publicly Held Companies (May 1998). Available at SSRN: https://ssrn.com/abstract=91508 or http://dx.doi.org/10.2139/ssrn.91508

Theodore Eisenberg

Cornell University, Law School (Deceased) ( email )

Myron Taylor Hall
Cornell University
Ithaca, NY 14853-4901
United States

Lynn M. LoPucki (Contact Author)

University of California, Los Angeles (UCLA) - School of Law ( email )

385 Charles E. Young Dr. East
Room 1242
Los Angeles, CA 90095-1476
United States
(310) 794-5722 (Phone)

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