Vicarious Liability for the Government v. Corporations

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May 26, 2012 Comments Off on Vicarious Liability for the Government v. Corporations bernardo

Reading white collar crime cases are very interesting.  A corporation, as the current law holds, can be held vicariously liable for the acts of its managers and employees.  See United States v. Bank of New England, 821 F.2d 844, 855 (1st Cir. 1987).  This is insane unless you require actual active participation to establish liability.  In civil law vicarious liability is something that is used often.  However it seems to only occur in the criminal context against corporations.  What is funny is that the government that goes after these corporations has limited vicarious liability for itself. See Luck v. Rovenstine, 168 F.3d 323, 326-7 (7th Cir. 1999); Thomas v. Independence Township, 463 F.3d 285, 298 (3d Cir. 2006) (stating “Personal involvement can be shown through allegations of personal direction or of actual knowledge and acquiescence”).