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Confidential Settlement

 
 
gollum
 
Reply Sat 13 Sep, 2014 06:05 pm
A corporation sells a product that is defective causing injuries and deaths. The injured parties sue and the corporation enters into a confidential settlement with them.

Why aren't such settlements made illegal as they hide a serious danger to the public?
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Type: Question • Score: 3 • Views: 587 • Replies: 8
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Lustig Andrei
 
  1  
Reply Sat 13 Sep, 2014 07:02 pm
@gollum,
It would be impossible to prosecute the case if the litigants have agreed not to testify against the corporation.
gollum
 
  1  
Reply Sun 14 Sep, 2014 06:29 pm
@Lustig Andrei,
Lustig Andrei-
Thank you.

The case between the injured consumer (plaintiff) suing the manufacturer is a civil case.

Later the District Attorney or other government agency brings a criminal case (e.g., State of New York vs. XYZ Corporation). In that case, can not the DA call upon the consumer to testify under oath? If that consumer has already signed an agreement not to testify shouldn't that be subordinated to the cause of justice?

If that is not the case under present law, wouldn't a change in law be in the public interest?
One Eyed Mind
 
  0  
Reply Sun 14 Sep, 2014 06:37 pm
Oh, this is what all professional people do.

They want their image to stay out of the reach of scrutiny, so they solve their flaws and errors in a way which the public cannot scrutinize them, unless somehow the person's scrutiny picked up on evidence the corporation left traces of unbeknownst them, which ends up turning a confidential case into a essential case for the public's eyes and ears.

The thing is, wise men don't hide or live transparent lives - only cowards do.

The other thing is, this... THIS is not the human race - THIS is the HUBRIS RACE. People are too caught up in their BULLSHIT, to properly deal with other people's BULLSHIT.
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roger
 
  2  
Reply Sun 14 Sep, 2014 07:18 pm
@gollum,
Oh, I doubt any contractual agreement could supersede the law. In fact, contracts for an illegal purpose are not valid.
Lustig Andrei
 
  1  
Reply Mon 15 Sep, 2014 12:56 am
@roger,
That's true. The terms of a confidential settlement usually assume that there will be no further action contra the corporation (defendant). However, such terms do not in any way prevent the appropriate government agency from initiating a criminal case and forcing testimony from the previous plaintiffs. (As a practical matter, this seldom happens because (1)the alleged offense that was the cause of the civil suit is not seen as a serious threat to the general public, or (2) the corporation fixes the problem as part of the general settlement. )
gollum
 
  1  
Reply Mon 15 Sep, 2014 04:36 am
@Lustig Andrei,
Lustig-
Thank you.

In the case I was thinking of, a major automobile manufacturer was producing defective cars leading to injuries and deaths. So the manufacturer entered into confidential settlements with the individuals who sued it, paying them off.
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personalinjury1
 
  1  
Reply Tue 4 Nov, 2014 03:14 am
As far as my knowledge goes if the litigants have agreed not to testify against the corporation there’s no way to prosecute the case legally...
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modification01
 
  1  
Reply Tue 11 Nov, 2014 01:51 am
Such settlements made illegal! but in most of the cases corporation fixes the problem as part of the general settlement.
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