Corporate Punitive Damages

Re “When Corporations Get Stung, They Listen Up,” Commentary, Oct. 22: Bruce Broillet gives up too easily! He bemoans the fact that “we cannot do much to punish or deter the amoral acts of some corporations.” True, under the present system, we can only fine them, since corporations cannot be imprisoned like ordinary citizens.

But what if, upon conviction, all trading in a corporation’s stock was frozen for a specified time? This would penalize corporate officers with fat stock options as well as speculators in the stock. Stockholders might bail out of the stock as the court decision approached, driving the price down until it was frozen. This form of “jail” could do a lot to curb the arrogance of corporate behavior.

SAMUEL R. ADAMS

Los Angeles

*

Broillet makes a strong case for large punitive damage awards as a means of getting the attention of corporate wrongdoers.

The thing about punitive awards (fines) in general that seems wrong to me is that the money goes to the plaintiff. If the plaintiff prevails in court, proving injury, damage, or pain and suffering resulted from wrongdoing by the defendant, awards are made to the plaintiff commensurate with those damages. If the jury finds that punitive measures are appropriate, then these fines should be payable to the cognizant government level, depending on whether the court is federal or state, just like fines levied for other infractions. Of course, such fines would not be subject to contingency fees to the plaintiff’s counsel. I wonder if Broillet would agree.

HOWARD G. WILSON

Los Angeles

*

Broillet says punitive damage awards against corporations that do damage to people are the only way to stop their abuses. An even better way is for states to use the laws that are already in place, and which used to be used, to revoke the charters of miscreant corporations. Why have governors and attorneys general become so soft on corporate crime? Could it have anything to do with the large sums of campaign contributions they get from those same corporations?

KJERSTEN JEPPESEN

North Hollywood