How do legal systems shape economic inequality and how can they help dismantle it? A bold re-examination of Law & Economics (L&E) is presented, moving beyond efficiency to explore the ethical, political, and social dimensions of legal reasoning. With a dual focus, the first part revisits foundational assumptions in L&E, offering both critical and pluralistic perspectives on economic reasoning in legal contexts. The second part shifts to the urban realm, revealing how legal frameworks contribute to segregation, inequality, and exclusion. Featuring contributions from leading scholars around the globe, this special issue brings fresh insight into how law can both uphold and undo inequality in today's complex world.By critically examining how laws influence resource distribution and social relations, this issue highlights the potential for legal reforms to address root causes of economic disparities. It emphasizes that law is not only a reflection of existing inequalities but also a powerful instrument for creating more just and inclusive societies.