Friday, November 10, 2006

No Limits of Punitive Damages for Corporate Negligence

We have all heard of the incredible and seemingly irrational punitive damages for corporate negligence. Many fights are currently open from Tobacco Companies to Pharmaceuticals. Most companies have someone suing them for something. The most famous is probably the individual who received damages because the coffee in McDonalds was too hot. While these cases seem stupid they are a result of our current political and corporate structure.

The government will not enact legislation to protect employees and consumers. It is interesting that seemingly random events are so closely tied to this subject. Current regulations are held up at the FAA regarding Pilot Fatigue. It seems that pilots are flying more hours with less downtime between flights. If a pilot complains he faces disciplinary action. For fear of losing their jobs pilots are flying in unsafe conditions. The FAA has been “reviewing” the regulations for several years but have not progressed in the regulations because they cannot come to agreement with the corporations. Yes, the government will not require safe practices because the airlines do not like the regulations!

Come on politicians, this is absurd. We are talking about safety. Corporations would rather kill hundreds of people rather than lose a percentage point on their margins and our government, you know, “We the people”, are simply a commodity. Who cares if a couple hundred people die?

The government will not enforce existing legislation in order to protect its collusion with Corporate America. We have the Treasury under fire because it is in cahoots with the major banks they are supposed to regulate. Turns out the banks feel that the money laundering legislation is too costly for them to adhere to so they just do not do what is required. The Treasury does not want to upset the major banks so they do not enforce the laws, covering up the illegal practices by all major banking institutions. Numerous States Attorney Generals have attempted to prosecute these cases but the Federal government blocks all attempts to enforce the law.

Immigration is another example of the federal government’s collusion with corporate America. The laws exist but the government will not enforce them. Several states have voted allowing the states to file lawsuits against the Federal Government and in some cases allowing employees to file suit directly against companies employing Illegal Immigrants because the company’s actions reduce wages across the board.

Corporate America will sacrifice employee and consumer safety to increase profits. Even without considering the grossly negligent cases above, the simple facts are that companies would rather pay damages after a judgment rather than spend a few bucks creating a safe workplace. I am personally aware of a situation at Target. The company implemented Deli products with sliced meats several years ago. An employee complained about the unsafe condition of the slicers, they had been used for several years without proper maintenance and the blades were no longer sitting in their protective covers, and was forced to quit her job. The state of Texas did nothing even though several different employees suffered work related accidents including the loss of part of a finger.

Another more serious situation recently made headlines here in Texas. Again a company trying to save money by not maintaining facilities is involved. The Texas City explosion at the BP plant is one of the greatest examples of negligence and disregard for employee and public safety. The company finally settled the last case with an agreement that the documents discovered are not made public. The Texas Public Safety Commission has already determined that the company cut back on necessary maintenance to reduce costs. People died! Why are the corporate executives not in Jail with a charge of manslaughter? Their actions are clearly tied to the deaths of these individuals. How much money has the Texas Public Safety Commission received from the company. Who in the government is directly involved with this cover up and why are these rich dudes held to a different standard than Joe Citizen?

The courts are the last line of defense of Citizen’s rights. Since the collusion between business and government is so deep the only defense is recourse to the judicial. Companies rely on the fact that employees rarely have the culture and the funds necessary to initiate legal action, the get off without any consequences. The few cases that finally become legal complaints have costs that are significantly less than what would be the costs for the company to create a safe work environment. This is the basic reason why there should be no limits on punitive damages. Removing punitive damages will encourage companies to further their cost cutting efforts creating greater peril for employees and customers.

The argument of most lobbyists trying to buy tort reform is that the damages are simply ridiculous. Why should a company pay Joe Citizen 100 million dollars when the company is negligent? No man’s life is worth 100 million dollars. Well they should practice what they preach. There are numerous executives in corporate America making hundreds of millions of dollars each year. Is your father’s life worth less than one year’s salary of some executive?


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