Profits over people...

"Profits over people..."

It's a fairly common expression.  We read it in editorials and blogs.  We hear it in political debates.  Unfortunately, it captures a very real phenomenon in many parts of the business world.  Corporations are far too willing to break the law and hurt people for the sake of making a profit.

            The civil justice system has a way of dealing with corporations that operate with a profits-over-people mentality.  It's called punitive damages.

            It's a fairly common expression.  We read it in editorials and blogs.  We hear it in political debates.  Unfortunately, it captures a very real phenomenon in many parts of the business world.  Corporations are far too willing to break the law and hurt people for the sake of making a profit.

            The civil justice system has a way of dealing with corporations that operate with a profits-over-people mentality.  It's called punitive damages.

 Compensatory damages are meant to make the victims whole by compensating them for their injuries and losses.  But in many cases this is not full justice.  Where corporations have acted willfully, or as part of a plan, scam or scheme to turn a profit at the expense of people, the law demands punishment.

            Punitive damages do exactly that.  Their purpose is to remove the profit that was wrongfully made and to punish the wrongdoer, sending a clear message that hurting people in the pursuit of profit will not be tolerated.  Thus, punitive damages serve two important purposes:  punishing wrongdoers and deterring others from engaging in the same kind of wrongdoing.

            Our law firm is committed to seeking full justice for our clients.  In many cases, this means seeking and recovering punitive damages from corporate wrongdoers.  Let's take a look at three recent examples.

            In Brown vs. Quicken Loans, our firm was defending a client against foreclosure proceedings.  It was soon discovered that the lender, Quicken, had engaged in predatory practices--teaming up with an unscrupulous appraiser to overinflate the value of the client's home and force her into a higher, unaffordable loan.  Quicken also pulled a bait-and-switch and then lied to the client, telling her that she could refinance the loan on more favorable terms in a few months.  Quicken knew that the loan would fail, but it didn't matter because Quicken pocketed fat fees in the process.  The trial court found that Quicken acted willfully and awarded over $2,000,000 in punitive damages.

            The client in McLaughlin vs. Ohio Power Company suffered serious, life-altering injuries as a result of an explosion at Ohio Power's Muskingum River plant in Washington County, Ohio.  The explosion occurred at the plant's hydrogen storage facility.  Two facts were especially important.  First, Ohio Power had experienced explosions at several of its other hydrogen storage facilities.  Thus, Ohio Power had specific knowledge that its hydrogen storage facilities were unsafe.  Nevertheless, it failed to take any steps to inspect or repair the Muskingum River facility to make it safe for workmen.  Second, a contractor had actually inspected the Muskingum River facility only a few months before the explosion and had prepared a checklist of safety issues that needed to be addressed.  Ohio Power simply ignored the checklist.  The jury, hearing these facts, determined that Ohio Power's deliberate misconduct warranted a $4,000,000 punitive damage award.

            In Cox vs. Personal Service Insurance Company, a client from Belmont County, Ohio was involved in a car wreck which tragically resulted in a death and a serious injury.  The insurer, PSI, improperly denied coverage.  As a result, the client was left without any insurance protection.  The client was sued personally and subjected to a large judgment.  Thereafter, the client sued PSI for bad faith.  The jury found that PSI had acted willfully in denying coverage to the client, forcing him to go through a long, harrowing litigation process and exposing his personal assets to judgment.  Accordingly, the jury awarded $2,000,000 in punitive damages against PSI. 

            As these cases illustrate, the profits-over-people mentality is alive and well in the tristate area.  Fortunately, the law provides a remedy that hits corporate wrongdoers where it matters most--in the pocketbook.  Our firm is not afraid to face large corporations and see that full justice is done on behalf of our clients including, where appropriate, an award of punitive damages.