Showing posts with label Damages. Show all posts
Showing posts with label Damages. Show all posts

Sunday, August 19, 2018

Whose Pocket?




If you're not a large corporation with unlimited funds for lawyers (or if you haven't bribed the judge) it may be difficult for to get prompt and proper adjudication of a lawsuit. The problem is one that most affects a plaintiff who is an average citizen suing a large firm. Two of their (the defendant's) techniques (among others) are delays in trial, and extension of the proceedings in order to make the litigation too expensive for the plaintiff to afford.



On the other hand, we hear, on occasion, of a jury that finds for a plaintiff and awards not only compensatory damages, which may not be large, but punitive damages in an amount that staggers us. The payment of many millions – or tens or hundreds of millions – may be decreed. Of course the defendant will appeal and invoke any legalities that may help it (I'm assuming it's a corporation) from paying the damages – at least not as much as has been determined. So the plaintiff, who may have won the case, remains without compensation for the harm done him, and faces more time in court.



Settlements, of course, will sometimes, shorten the process. The problems with them are that the amounts paid are less and, after the lawyer is paid, may not represent adequate compensation for the damages and for the plaintiff's time and aggravation. Often moreover, the parties are not allowed to disclose the details of the settlement, in the hope that others won't be encouraged to sue in the hope of a windfall.



Another consideration is that the punitive damages may actually be excessive in relation to the harm to the individual, although it may not be small when damages to all of those affected are considered. It winds up as a windfall for the plaintiff and his lawyer – one that may not be warranted. It helps them, but not the public at large. It's not fair.



Can a better system be devised? Perhaps. I'm not especially concerned about corporations that have harmed our citizens and, although aware of the faults, would continue to do so because it helps their bottom line and they don't anticipate ever having to pay the piper – or at least not having to pay very much. (I must admit my view that some companies that are following the rules and are unaware of damage they do should be evaluate differently. I leave that concern for another time.) My unease is with those who feel they have been wronged. I realize that individual suits may be a form of extortion but I'm convinced that the greater fault is on the part of those who wronged them, if that is the case.



I also feel that a large payment for silence, or excessive punitive damages awarded to an individual because a jury is feeling its oats, or for whatever other reason, does not serve the public good, however much we may enjoy the fact that a corporation with deep pockets is being humbled. I am also troubled by the long delays which deprive the plaintiff of justice.



My lack of legal credentials, however, does not forestall me from making some proposals for dealing with this situation. I'm nothing if not all-knowing – even in areas in which I lack knowledge. And I also recognize the fact that at certain levels the rules are decided locally, reflecting local views rather than those of the federal government. If they are deemed reasonable and worthy, one or more of my proposals could be incorporated into state law. There are three areas that I want to address.



The first relates to punitive damages. They should go to the government – to all of us (for tax relief, improved government projects, aid for the needy). They are fines that should not go to the individual suing. Too much of it goes to his lawyer in any case. Decisions about punitive damages should be argued following a decision about responsibility and not be part of the initial findings of the jury, although compensatory damages may, as discussed below. Government lawyers should take over if an initial decision of guilt is made. They'll have more time and backing than the plaintiff's lawyer, and are better prepared to withstand the actions of an opposing corporation's staff.



The second area of note for me is that of compensatory damages. From my perspective they should be generous if the jury believes the defendant to be at fault. In addition to repayment for the actual offense, the following areas should be compensated (assuming they are not factors in that offense): time lost related to the offense itself and the legal actions that followed; legal expenses (and perhaps these should be specified so that they don't come from the overall settlement); embarrassment and damage to the plaintiff's reputation; anticipated future losses and costs likely to result from the wrong; and any other area that the jury considers appropriate. The threat of such damages and of government lawyers in the second phase of the action may convince the wrongdoer that, since there would be no consideration of punitive damages, a quick settlement, even if generous, would be less costly than protracted legal actions. (Of course if the jury decides that the suit was frivolous, costs should be paid by the plaintiff.) Class action suits would not be affected by these rules.



Finally there is the consideration of time. “Justice delayed is justice denied.” Trials should be swift. There should be short time limits set for consideration of the facts prior to trial, for appeal of verdicts, preparations for appeals since the one appealing will already know why he is dissatisfied, and any subsequent actions. At some point the awarded damages should be paid, irrespective of the stage of litigation. Whoever considers the decision unjust would have to initiate a new suit at that time, and the rules would be the same.



The purpose of such procedures would be to speed the judicial process and ensure the rapid payment of whatever is due – whether to the plaintiff or defendant. And it is aimed at the payment to the government of sums that will be available for costs that later result from the actions that prompted the suit.



If “deep pockets” are going to cover the costs of damages they've done – both to the individual and to society, and to pay them in a reasonable time, it may be appropriate to change the rules of “the game.”










May 25, 2017

Tuesday, June 6, 2017

Various Thoughts VIII



More food for thought.

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Some conditions that we accept as normal are certainly diseases, even if we all don't feel so – and that includes the views of some who are affected. Take “gender dysphoria” as an example. It has an ICD (International Classification of Diseases) code as well as the American Psychiatric Associations DSM (Diagnostic and Statistical Manual of Mental Disorders) code. In fact some of the medical insurance companies consider it justification for surgery. It's likely that it results from an individual's DNA or a prenatal condition suffered by the mother. In any event, it's not the individual's fault. In fact “fault” is an inappropriate word. People with sicknesses merit understanding and forgiveness rather than blame.

Alcoholics have a disease. So do addicts of other materials – prescribed opioids are in the news nowadays. But somehow, although we're less understanding of them, we accept the concept. The law recognizes the nature of their problem and society seeks non-punitive way of addressing their problems. There are rehabilitation programs, often paid for by the government or covered by insurance companies. Such rehabilitation, of course, is costly, and expenses are paid for by all of us in the form of taxes and insurance premiums. That's not immediately apparent, and we press for greater assistance of the afflicted.

Voyeurs, rapists, and serial killers are also diseased, whether or not we're willing to admit it, but we're unlikely to cut them any slack. We're much more willing to pay for their punishment than to help them. Should we be more understanding or have we gone too far already?

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Who's made in whose image? I've been wondering about it. It's a religious issue or, rather, it's many religious issues. Take Zeus, Achilles, Mars, Jupiter, Athena, and all of those folks. People created them, not the opposite. They had all the traits of good guys and bad guys – all the characteristics we had. They were made in “our” image.

Judaism, and, to an extent, its “spin-off” religious, says the opposite. G-d created us and gave us the Torah which documented that process and our early history. Christianity added Jesus, a human G-d figure, but the record that has been passed down was written by people who never knew Jesus, but were able to describe him based on what they heard. And Islam makes no claim of a new or additional deity – only of a prophet. So all their holy documents – all their understanding of G-d – was written by men based on the words of their prophet whose Koran was based on the Jewish bible and its Christian expansion. (I cannot comment on non-“western” religions because I know little about them.)

But what about the original – Judaism? While the Torah is attributed to G-d, it was written by one (or more according to some scholars) human, so even though G-d is asserting creation, and that man was made in His image, our only record of this claim is what we're told by another human being. And the various extrapolations and interpretations of His laws are also provided by our sages – more humans.

So who created whom? And in whose image?

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Every now and then we read about a lawsuit that results in huge punitive damages which seem to us to be disproportionate to the injury but are clearly designed to affect the behavior of the defendant in the future. They are fines aimed at making a company with deep pockets think twice before letting its products or its actions harm more of our citizens.

Generally speaking, however, fines are awarded to the government – us – as punishment of offenders. Should punitive damages follow the same pattern? Government lawyers have more resources than private lawyers and their interest in, and work toward, a large punitive settlement, in the public interest, might increase the size of the damages. The plaintiff (and his attorney) are certainly entitled to remuneration for their costs and for damages done, as well as a (small) part of the punitive damages, but the public that was at risk is entitled to the largest part of the fine. Additionally, the recognition by well-funded defendants that they are facing a well-funded government force may result in case settlements at an early time.

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Chew on the food (for thought) I've offered. More next time.



May 23, 2017