Corporate
America Wants Its Own Immunity Passport
By Pat Bagley, Salt Lake Tribune |
What I find amazing is
that business lobbyists and their GOP supporters think they can sell the
country on the idea, which would be a brazen giveaway to corporate interests.
There are numerous
compelling arguments against immunity, but I want to focus on one: the track
records of corporations themselves.
Proponents of a liability shield imply that large companies normally act in good faith and that any coronavirus-related litigation would be penalizing them for conditions outside their control. These lawsuits, they suggest, would be frivolous or unfair.
Proponents of a liability shield imply that large companies normally act in good faith and that any coronavirus-related litigation would be penalizing them for conditions outside their control. These lawsuits, they suggest, would be frivolous or unfair.
This depiction of
large companies as innocent victims of unscrupulous trial lawyers is a
long-standing fiction that business lobbyists have used in promoting “tort
reform,” the polite term for the effort to limit the ability of victims of
corporate misconduct to seek redress through the civil justice system.
That campaign has not been more successful because most people realize that corporate negligence is a real thing.
That campaign has not been more successful because most people realize that corporate negligence is a real thing.
In fact, some of the industries that are pushing the hardest for immunity are ones that have terrible records when it comes to regulatory compliance. Take nursing homes, which have already received a form of covid immunity from New York State.
That business includes
the likes of Kindred Healthcare, which has had to pay out more than $350 million in fines and settlements.
The bulk of that amount has come from cases in which Kindred and its subsidiaries were accused of violating the False Claims Act by submitting inaccurate or improper bills to Medicare and Medicaid. Another $40 million has come from wage and hour fines and settlements.
The bulk of that amount has come from cases in which Kindred and its subsidiaries were accused of violating the False Claims Act by submitting inaccurate or improper bills to Medicare and Medicaid. Another $40 million has come from wage and hour fines and settlements.
Kindred has also been
fined more than $4 million for deficiencies in its operations. This includes
more than $3 million it paid to settle a case brought by the
Kentucky Attorney General over issues such as “untreated or delayed treatment
of infections leading to sepsis.”
Or consider the
meatpacking industry, which has experienced severe outbreaks yet is keeping
many facilities open.
This sector includes companies such as WH Group, the Chinese firm that has acquired well-known businesses such as Smithfield. WH Group’s operations have paid a total of $137 million in penalties from large environmental settlements as well as dozens of workplace safety violations.
This sector includes companies such as WH Group, the Chinese firm that has acquired well-known businesses such as Smithfield. WH Group’s operations have paid a total of $137 million in penalties from large environmental settlements as well as dozens of workplace safety violations.
Similar examples can
be found throughout the economy. Every large corporation is, to at least some
extent, a scofflaw when it comes to employment, environmental and consumer
protection issues.
There is no reason to think this will change during the pandemic. In fact, companies may respond to a difficult business climate by cutting even more corners.
There is no reason to think this will change during the pandemic. In fact, companies may respond to a difficult business climate by cutting even more corners.
The two ways such
misconduct can be kept in check are regulatory enforcement and litigation. We
have an administration that believes regulation is an evil to be eradicated.
This makes the civil
justice system all the more important, yet business lobbyists and their
Congressional allies are trying to move the country in exactly the opposite
direction. They want to liberate big business from any form of accountability,
giving it what amounts to an immunity passport.
Heaven help us if they succeed.
Heaven help us if they succeed.