Interpretive Entrepreneurs

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Private actors interpret legal norms, a phenomenon I call “interpretive entrepreneurship.” The phenomenon is particularly significant in the international context, where many disputes are not subject to judicial resolution and there is no official system of precedent. Interpretation can affect the meaning of laws over time. For this reason, it can be a form of “post hoc” international lawmaking, worth studying alongside other forms of international lobbying and norm entrepreneurship by private actors. The Article identifies and describes the phenomenon through a series of case studies that show how, why, and by whom it unfolds. The examples focus on entrepreneurial activity by business actors and cast a wide net, examining aircraft finance, space mining, modern slavery, and investment law. As a matter of theory, this process-based account suggests that international legal interpretation involves contests for meaning among diverse groups of actors, giving credence to critical and constructivist views of international legal interpretation. As a practical matter, the case studies show that interpretive entrepreneurship is an influence tool and a driver of legal change.

Introduction

Uber is a “disruptor.”1.Clayton M. Christensen, Michael E. Raynor & Rory McDonald, What Is Disruptive Innovation?, Harv. Bus. Rev., Dec. 2015, https://hbr.org/2015/12/what-is-disruptive-innovation [https://perma.cc/S84Z-8RE5] (“‘Disruption’ describes a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses.”); see alsoAndré Spicer, Disruptor Has Become a Dirty Word. And Not Just When Applied to Donald Trump, The Guardian, (June 11, 2019),https://www.theguardian.com/‌commentisfree/2019/jun/11/disruptor-dirty-word-donald-trump-scientists-engineers [https://perma.cc/P34D-HGY5] (“Now being [a] ‘disruptor’ is a positive. Entrepreneurs such as Elon Musk are lauded when they seek to ‘disrupt’ established industries . . . .”).Show More While the term generally refers to disruption of a business model, Uber’s disruption extends to the law.2.SeeElizabeth Pollman & Jordan M. Barry, Regulatory Entrepreneurship, 90 S. Cal. L. Rev. 383, 398 n.63 (2017) (describing how Uber relied on changing the law as part of its business plan).Show More Rather than submit to the restrictive rules of the taxicab industry, Uber read itself out of them, relying on its own aggressive legal interpretations to justify its plans.3.Id.Show More It then launched its business, entrenched itself in popular culture, gathered political power, and became “too big to ban.”4.Id. at 401–02.Show More Uber’s success in defining itself out of taxicab regulations is a high profile example of a phenomenon I call “interpretive entrepreneurship.”5.While Uber’s interpretations have often been successful in the United States, these results have not consistently been replicated elsewhere. See, e.g., Case C-434/15, Asociación Profesional Elite Taxi v. Uber Sys. Spain SL, ECLI:EU:C:2017:981 (Dec. 20, 2017) (defining Uber as a “service in the field of transport” under European Union Law and thus subject to normal regulation as a taxi). This observation builds on and departs from an account developed by Elizabeth Pollman and Jordan Barry, who define “regulatory entrepreneurship” as “[w]ell-funded, scalable, and highly connected startup businesses” who “target state and local laws and litigate them in the political sphere instead of in court.” Pollman & Barry, supra note 2, at 383. This Article identifies Pollman and Barry’s legal disruption as one mode of entrepreneurial interpretation.Show More

Interpretive entrepreneurship is the act of developing the law by interpreting it. Interpretive entrepreneurs might exploit legal uncertainty to pursue business plans, as Uber did, and change the regulatory environment along the way.6.Seediscussion infraSubsection II.A.1.Show More Or they may shop around favorable interpretations to regulators, or publicize reputation-friendly interpretations to investors and the public.7.Seediscussion infraSubsection II.A.2.Show More Through each mode, interpretive entrepreneurs seek to influence legal development.8.Seediscussion infra Section II.C.Show More A more familiar way to think about private sector influence over legal development is through the lobbying that surrounds new lawmaking efforts.9.See, e.g., William N. Eskridge, Jr., Federal Lobbying Regulation: History Through 1954, in The Lobbying Manual 5 (William V. Luneburg, Thomas M. Susman & Rebecca H. Gordon eds., 4th ed. 2009) (history of U.S. federal lobbying laws); Samuel Issacharoff, On Political Corruption, 124 Harv. L. Rev. 118, 121, 134–42 (2010) (reviewing efforts to redress the “financial vulnerabilities of democracy,” including through campaign-finance reform efforts); Thomas M. Susman & William V. Luneburg, History of Lobbying Disclosure Reform Proposals Since 1955, in The Lobbying Manual, supra, at 23 (history of U.S. federal lobbying reform proposals).Show More Interpretive entrepreneurship is the ex post companion to these ex ante lobbying efforts. While legal scholarship has focused on the ex ante lobbying,10 10.See, e.g., Heather K. Gerken & Alex Tausanovitch, A Public Finance Model for Lobbying: Lobbying, Campaign Finance, and the Privatization of Democracy, 13 Election L.J. 75, 87–90 (2014) (proposing reforms that would subsidize lobbying activity by public interest groups); Richard L. Hasen, Lobbying, Rent-Seeking, and the Constitution, 64 Stan. L. Rev. 191, 226–36 (2012) (proposing a “national economic welfare” rationale for lobbying regulation); Maggie McKinley, Lobbying and the Petition Clause, 68 Stan. L. Rev. 1131, 1199 (2016) (asserting that current lobbying regulation and practice violates the First Amendment’s Petition Clause); Zephyr Teachout, The Forgotten Law of Lobbying, 13 Election L.J. 4, 6 (2014) (noting that the scope of the constitutional lobbying right is unclear).Show More the ex post interpretative role is underappreciated. As this Article shows, both activities deserve attention.

To sharpen the account and clarify the stakes, the Article makes two framing choices. First, while many actors can participate in legal interpretation, the Article focuses on interpretive entrepreneurship by business actors. This choice directs attention to the fact that some of the same actors may participate in both lobbying and interpretation as separate portions of a unified influence campaign to advance business agendas.11 11.See, e.g., discussion infra Subsection II.A.1 (describing how industry efforts to develop the Cape Town Convention on International Interests in Mobile Equipment began at the drafting stage and continue with efforts on implementation, interpretation, and compliance).Show More Second, the Article focuses its account on interpretation of international legal norms. While interpretive entrepreneurship may take place at any level of legal ordering, from the municipal to the international, interpretive entrepreneurship is particularly significant as a transnational phenomenon.12 12.Consider the problem of interpretation in the international context. For example, the key operative provision of the Paris Agreement on climate change provides that “[e]ach Party shall prepare, communicate and maintain successive nationally determined contributions that it intends to achieve. Parties shall pursue domestic mitigation measures, with the aim of achieving the objectives of such contributions.” Paris Agreement art. 4, ¶ 2, Dec. 12, 2015, T.I.A.S. No. 16-1104 (emphasis added). What is the meaning of the italicized portion? Have parties obligated themselves to engage in mitigation measures? For a careful defense of this interpretation, see Daniel Bodansky, Jutta Brunée & Lavanya Rajamani, International Climate Change Law 231 (2017) (arguing that the imperative “shall” relates both to the national contributions and the pursuit of mitigation measures). Or have parties merely committed to “pursuing” measures, with no obligation to actually carry them out? See, e.g., Richard Falk, “Voluntary” International Law and the Paris Agreement, Commentary on Global Issues (Jan. 16, 2016), https://richardfalk.wordpress.com/2016/01/16/voluntary-international-law-and-the-paris-agreement/ [https://perma.cc/ZTH6-C3UV] (arguing that the Paris Agreement is “voluntary” international law with no binding commitments). Which reading is best? Which is law? The Paris Agreement does not designate any international court or tribunal as a neutral arbitrator of disputes. Even if it had done so, international law has no official system of precedent to carry one tribunal’s interpretation forward with the force of law. See Harlan Grant Cohen, Theorizing Precedent in International Law, in Interpretation in International Law268, 269 (Andrea Bianchi, Daniel Peat & Matthew Windsor eds., 2015) [hereinafter Cohen, Theorizing Precedent].In the United States, federal courts will interpret treaties, deferring in some instances to the executive branch. Curtis A. Bradley & Jack L. Goldsmith, Presidential Control over International Law, 131 Harv. L. Rev. 1201, 1204 (2018) (observing that “Presidents . . . have come to dominate the creation, alteration, and termination of international law for the United States”); see also Restatement (Third) of the Foreign Relations Law of the United States § 326(2) (Am. L. Inst. 1986) (noting that courts “give great weight to an interpretation made by the Executive Branch”). But many treaties do not offer private rights and so their meanings are not litigated in the United States. See id. § 907 cmt. a (“International agreements . . . generally do not create private rights or provide for a private cause of action in domestic courts . . . .”); see also United States v. Emuegbunam, 268 F.3d 377, 389 (6th Cir. 2001) (“As a general rule, however, international treaties do not create rights that are privately enforceable in the federal courts.”). Even if they are litigated in the United States, the interpretation produced by a U.S. court is just one competing interpretation on the international stage. Treaty meaning is not often litigated before international tribunals like the International Court of Justice. See Eric A. Posner, The Decline of the International Court of Justice 5 (Univ. Chi. John M. Olin L. & Econ., Working Paper No. 233, 2004), https://chicagounbound.‌uchicago.edu/cgi/viewcontent.cgi?article=1499&context=law_and_economics [https://perma.cc/77P8-RYK3] (noting that states frequently refuse to submit to the jurisdiction of the International Court of Justice).Show More This is due to the growing importance of transnational commerce combined with the lack of courts with general jurisdiction and a system of precedent on the international level.13 13.Cohen, Theorizing Precedent, supranote 12, at 268, 269–70 (“International law today . . . generally denies international precedents doctrinal force.”); see also sources cited infra Section I.A. (developing these points).Show More

Conventional accounts of international legal interpretation focus on interpretive doctrine rather than on the process of interpretation and the multiplicity of actors involved.14 14.Daniel Peat & Matthew Windsor, Playing the Game of Interpretation: On Meaning and Metaphor in International Law, in Interpretation in International Law, supra note 12, at 3, 3–4, 8 (identifying these gaps and setting out to remedy this shortcoming by “highlight[ing] the practice and process of interpretation as well as the professional identity of those involved”); see also James Crawford, Foreword toInterpretation in International Law, supranote 12, at v, v (“Legal scholarship has tended to tackle the issue of interpretation either from an abstract, quasi-philosophical perspective, or by focusing on the Vienna Convention on the Law of Treaties . . . .”).Show More But related literatures show that interpretive participants and processes matter. For example, debates in the United States concern which questions are too “political” for the judiciary to resolve, and which branch of government is best suited to decide matters of foreign affairs.15 15.SeeJesse H. Choper, Introduction to The Political Question Doctrine and The Supreme Court of the United States 1, 1–2 (Nada Mourtada-Sabbah & Bruce E. Cain eds., 2007) (outlining debates about the political question doctrine); Bradley & Goldsmith, supranote 12, at 1252–56 (examining consequences of presidential control over international lawmaking and interpretation).Show More They rest on the assumption that the interpreter and the forum can affect the outcome.

The Article directs attention to processes of international legal interpretation, and particularly to private sector influences in that process. It relies on the socio-legal method of grounding theoretical insights in descriptive analysis.16 16.The approach places this Article within the “empirical turn” in international legal scholarship, which focuses on “midrange theorizing,” or building theory from the study of facts. Gregory Shaffer & Tom Ginsburg, The Empirical Turn in International Legal Scholarship, 106 Am. J. Int’l L. 1, 1 (2012).Show More Its analysis suggests that business entities are involved in a potentially vast amount of international interpretive activity which helps shape the development of international legal norms.

The Article makes three principal contributions. First, it describes and analyzes the interpretive entrepreneurship phenomenon through a collection of case studies relating to diverse areas of public and private international law.17 17.SeeinfraSections II.A & B.Show More The case studies are based on both original research and a cross-disciplinary literature review. They cast a wide net, ranging from aircraft financing18 18.Seeinfra Subsection II.A.1.Show More to the meaning of “modern slavery”19 19.Seeinfra Subsection II.A.4.Show More for the purpose of supply chain due diligence. They address private sector interpretations in trade and investment law20 20.Seeinfra Subsection II.A.3 & Section II.B.Show More as well as the Outer Space Treaty’s application to commercial mining.21 21.SeeinfraSubsection II.A.2.Show More

The case studies show how, why, and by whom interpretive entrepreneurship unfolds.22 22.For all the points in this paragraph, see thediscussion in Section II.C.Show More The methods of interpretation are both formal and informal; they are sometimes facilitated by the apparatus of the state, and sometimes take place in purely private fora. Targets of persuasive campaigns, the “audiences” for these private sector interpretations, can be state parties to a treaty, domestic courts or international tribunals, subnational regulators, shareholders, or the public. The case studies show that private actors can engage in interpretive entrepreneurship for a variety of purposes, including to entrench commerce-friendly interpretations, forestall regulation, secure reputational benefits, or demonstrate compliance.

The Article’s second contribution is to show how the interpretive entrepreneurship phenomenon contributes to and re-frames existing debates on international legal interpretation. Many debates focus on interpretive rules found in the Vienna Convention on the Law of Treaties (“VCLT” or Vienna Convention),23 23.Vienna Convention on the Law of Treaties arts. 31–33, opened for signature May 23, 1969, 1155 U.N.T.S. 331; see, e.g., Duncan B. Hollis, The Existential Function of Interpretation in International Law, in Interpretation in International Law, supra note 12, at 78, 80 (“Conventional wisdom focuses almost entirely on . . . a single interpretive method—Articles 31 and 32 of the VCLT.”); Peat & Windsor, supranote 14, at 4 (noting that the “state of play” when it comes to interpretation in international legal scholarship and practice “is characterized by a myopic focus on the rules of treaty interpretation in Articles 31–33 of the VCLT”).Show More and on the best methods to apply those rules.24 24.As any international lawyer can explain, the Vienna Convention rules instruct that treaties should be “interpreted in good faith in accordance with the ordinary meaning to be given to the terms of the treaty in their context and in light of its object and purpose.” Vienna Convention on the Law of Treaties, supra note 23, at art. 31, ¶ 1. The vast majority of legal scholarship on international legal interpretation addresses the proper use of these rules. Seediscussion infraSubsection I.B.1. Their apparent simplicity masks myriad questions, which have spawned a variety of interpretive approaches, including textualism, purposivism, and a teleological approach, among others. SeeHollis, supra note 23, at 81 (noting that “proponents of different interpretive methods claim that the VCLT accommodates, or privileges, their method”).Show More A “retrievalist” view suggests that applying the rules correctly will produce a correct interpretation.25 25.Joseph Raz, Between Authority and Interpretation: On the Theory of Law and Practical Reason 241–64 (2009) (“Interpretation is therefore often thought to be retrieval, a process of retrieving and elucidating the meaning the original has.”).Show More But the Vienna Convention rules themselves require interpretation,26 26.SeeHollis, supra note 23, at 84 (noting that the VCLT rules themselves require interpretation); see alsoJohn Tobin, Seeking to Persuade: A Constructive Approach to Human Rights Treaty Interpretation, 23 Harv. Hum. Rts. J. 1, 3 (2010) (“[The Vienna Convention] is ultimately unable to resolve the question of how to choose a meaning . . . from among the inevitable range of potential meanings.”).Indeed, twentieth century American legal realists observed that all law might be indeterminate. See, e.g., Karl Lewellyn, Some Realism About Realism—Responding to Dean Pound, 44 Harv. L. Rev. 1222, 1237 (1931) (arguing that one of the hallmarks of realism is “distrust of the theory that traditional prescriptive rule-formulations are the heavily operative factor in producing court decisions”); Felix S. Cohen, Transcendental Nonsense and the Functional Approach,35 Colum. L. Rev. 809, 843 (1935) (“A truly realistic theory of judicial decisions must conceive every decision as . . . a product of social determinants and an index of social consequences.”); see alsoH.L.A. Hart, The Concept of Law 204(2d ed. 1994) (“[T]he open texture of law leaves a vast field for creative activity which some call legislative.”).Show More and critical theorists reject the formalist project as blinkered, observing that legal interpretation is infused with ideology and reflects and embeds power.27 27.See, e.g., Phillip Allott, Interpretation—An Exact Art, in Interpretation in International Law, supranote 12, at 373, 375 (noting that “[t]o anyone who knows anything about . . . epistemology” the idea that treaties have meaning “may seem comical in its naivety”); Martti Koskenniemi, From Apology to Utopia: The Structure of International Legal Argument 8 (2006) (“Meaning is not . . . present in the expression itself.”); Ian Johnstone, Introduction, 102 Am. Soc’y Int’l L. Proc. 411, 411 (2008) (noting debates over whether interpreters are “making law, based on values and policy choices”); see alsoNote,’Round and ‘Round the Bramble Bush: From Legal Realism to Critical Legal Scholarship,95 Harv. L. Rev. 1669, 1678 (1982) (noting that critical scholars recognize the “historical contingency of law” and doctrinal first principles “represent mere choices of one set of values over another”); discussion infraSubsection I.B.2 (developing these points).Show More A third, “constructivist,” approach proposes that interpretation is necessarily a creative process, as interpreters use various tools to try to persuade others within interpretive communities.28 28.Crawford, supra note 14, at v (“[I]nternational lawyers think that their interpretations are right, and they play the game [of interpretation] by trying to convince others of this.”). The term “constructivist” is appropriate here because the term “epistemic community” arose out of constructivist international relations theory. Michael Waibel, Interpretive Communities in International Law, in Interpretation in International Law, supranote 12, at147, 149.Show More Interpretation is a contest, a game, or a staging ground for bargaining.29 29.SeeWaibel, supra note 28, at 148 (calling interpretation a “contest”); Crawford, supra note 14, at v (calling interpretation a “game”); Andrea Bianchi, The Game of Interpretation in International Law: The Players, the Cards, and Why the Game is Worth the Candle, in Interpretation in International Law, supra note12,at34, 34 (calling interpretation a “game”); Yanbai Andrea Wang, The Dynamism of Treaties, 78 Md. L. Rev. 828, 837 (2019) (calling treaties “departure points for further bargaining”).Show More This Article re-focuses these debates, showing how, for each of the dominant theoretical approaches to international legal interpretation, the process of interpretation has real stakes. It also gives credence to critical and constructivist understandings that the identity of the interpreter matters to the interpretation.

Third, the Article frames these interpretive processes as a form of post hoc lawmaking,30 30.Seeinfra Part III.Show More which develop the meaning of laws over time. The phenomenon is worth studying alongside activities like lobbying and agency capture that exert pressure on lawmaking ex ante.31 31.SeeEyal Benvenisti, Exit and Voice in the Age of Globalization, 98 Mich. L. Rev. 167, 170–71 (1999) (conceiving of the sovereign state as an agent of small interest groups); Rachel Brewster, The Domestic Origins of International Agreements, 44 Va. J. Int’l L. 501, 539 (2004) (noting that governments make international agreements in response to domestic needs); Melissa J. Durkee, International Lobbying Law, 127 Yale L.J. 1742, 1747 (2018) (describing the “quotidian reality of international lobbying”). The fact that international lawmakers face pressures from domestic constituencies has long been a matter of interest within international relations. See, e.g.,Andrew Moravcsik, Taking Preferences Seriously: A Liberal Theory of International Politics, 51 Int’l Org. 513, 518 (1997) (arguing that in liberal international relations theory, domestic constituencies construct state interests); Robert D. Putnam, Diplomacy and Domestic Politics: The Logic of Two-Level Games, 42 Int’l Org. 427, 433–34 (1988) (theorizing that the negotiating behavior of national leaders reflects the dual and simultaneous pressures of international and domestic political games).Show More The project therefore contributes to literatures that investigate how multinational entities wield their power to shape international law.32 32.These conversations are playing out in multiple disciplines. See, e.g., John Braithwaite & Peter Drahos, Global Business Regulation 5–7, 27–33 (2000) (sociology); Walter Mattli & Ngaire Woods, Introduction to The Politics of Global Regulation, at ix, x–xii (Walter Mattli & Ngaire Woods eds., 2009) (political science); A. Claire Cutler, Virginia Haufler & Tony Porter, Private Authority and International Affairs, in Private Authority and International Affairs 3, 4 (A. Claire Cutler, Virginia Haufler & Tony Porter eds., 1999) (international relations); Tim Büthe & Walter Mattli, The New Global Rulers: The Privatization of Regulation in the World Economy 5 (2011) (law); Joshua Barkan, Corporate Sovereignty: Law and Government Under Capitalism 8–14 (2013) (political geography).Show More It is also in conversation with a literature that explores the role of “regulatory intermediaries” in developing international law,33 33.Kenneth W. Abbott, David Levi-Faur & Duncan Snidal, Theorizing Regulatory Intermediaries: The RIT Model, 670 Annals Am. Acad. Pol. & Soc. Sci. 14 (2017). This literature seeks to understand how “state actors, private organizations, and civil society actors mediate the meaning of legal rules in regulatory governance arrangements that they participate in.” Shauhin Talesh, Rule-Intermediaries in Action: How State and Business Stakeholders Influence the Meaning of Consumer Rights in Regulatory Governance Arrangements, 37 Law & Pol’y 1, 2 (2015).Show More and a literature that conceives of international law as the product of “norm cascades” produced in part by norm entrepreneurs.34 34.Martha Finnemore & Katheryn Sikkink, International Norm Dynamics and Political Change, 52 Int’l Org. 887, 893 (1998) (introducing the idea that norms “cascade” through an international system after a sufficient number of states adopt the norm; advocacy groups can help initiate this process by serving as “norm entrepreneurs”). The “norm cascade” literature has focused on advocacy groups, id., rather than private sector norm entrepreneurs, and has focused on the role of non-governmental organizations in the emergence of a norm rather than the interpretation of that norm once a treaty has been adopted. See Heidi Nichols Hadad, After the Norm Cascade: NGO Mission Expansion and the Coalition for the International Criminal Court, 19 Glob. Governance 187, 187 (2013) (noting the assumption that “NGOs exercise their greatest impact on norm change during the early stages of norm emergence”).Show More Understanding interpretive entrepreneurship as one way private actors influence the law clarifies the practice of international legal interpretation, helps evaluate its effects on the legitimacy and effectiveness of international law, and develops a foundation for potential reforms.

The practical context is important. Despite existential global threats like climate change, the risk of pandemic, and regional conflicts, the early twenty-first century is not an era of multilateral lawmaking. Rather, the tools at hand are principally the laws on the books. As the Article shows, because interpretation can develop those laws over time,35 35.Rahim Moloo, Changing Times, Changing Obligations? The Interpretation of Treaties Over Time, 106 Am. Soc’y Int’l L. Proc. 261, 261, 264 (2012) [hereinafter Moloo, Changing Times?] (noting that while treaties are hard to amend, treaty interpretation can adapt treaties to changing circumstances).Show More they attract contests for meaning by those who would develop or erode them. Interpretive entrepreneurship can drive legal change.

Part I develops the argument that a process-based account of international legal interpretation has both theoretical and practical salience. Part II describes the interpretive entrepreneurship phenomenon through a series of case studies and organizes and analyzes this activity. Part III characterizes interpretive entrepreneurship as post hoc lawmaking and identifies its implications.

Persuasion Treaties

All treaties formalize promises made by national parties. Yet there is a fundamental difference between two kinds of treaty promise. This difference divides all treaties into two categories: treaties that govern the behavior of state parties and their agents fall in one category; treaties in the second category—those I call “persuasion” treaties—commit state parties to changing the behavior of non-state actors as well. The difference is important because the compliance problems for the two sets of treaties sharply diverge. Persuasion treaties merit our systematic attention because they are both theoretically and practically significant. In areas such as international environmental affairs, we simply cannot address critical global problems without them.

I use the term “persuasion” to communicate the observation that the success—and sometimes the very existence—of treaties in this class depends upon whether state parties can successfully enlist private sector support. The theory builds on recent scholarship that identifies the depth of regulatory interdependence between private and public sector actors. Business entities may choose either to cooperate with or to impede domestic regulatory regimes, and their decisions are not fully susceptible to legal control. The business choice is significant on the international stage: without a successful domestic regulatory regime, a state will not be able to keep corresponding international commitments. Moreover, many states do not commit to treaties they cannot implement or enforce. Thus, persuasion treaty regimes must attract the support of relevant business entities, either ex ante (to secure international agreement) or ex post (to achieve results).