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Subject:
tactics of a corporation suing another corporation
Category: Relationships and Society > Law Asked by: grthumongous-ga List Price: $29.95 |
Posted:
01 Dec 2004 20:25 PST
Expires: 20 Dec 2004 02:26 PST Question ID: 436927 |
Tactics of a corporation suing another corporation. When a corporation sues another corporation but also names specific current and former employees of that corporation as co-defendants what is the advantage to the plaintiff? There must be one as I have never noticed this tactic before. What are the advantages and disadvantages for the defendant corporation? In other words, does the counsel for the corporation welcome this as a chance to offload all the liability to the named individuals? Does that conflict with the old maxim of the corporation never agreeing to having committed any wrongdoing---only that they will promise not to do it again in the future. http://www.globeadvisor.com/servlet/ArticleNews/story/gam/20041108/RAIRCANA08 posted circa November 8, 2004. "Air Canada added Mr. Beddoe and four other Calgarians -- three WestJet managers and one former vice-president -- to its list of defendants. Mr. Hill, previously named as a defendant, resigned as vice-president of strategic planning in July." The price is below my usual reference line but I will consider tipping :) | |
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There is no answer at this time. |
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Subject:
Re: tactics of a corporation suing another corporation
From: alex101-ga on 03 Dec 2004 11:58 PST |
The probable advantage is that, by naming employees, the Plaintiff can probably keep the case in State Court and out of Federal Court by destroying Diversity Jurisdiction. Federal Courts tend to be more favorable for Defendants. A potential, but unlikely, advantage to the Defendant is if an argument can be crafted to shift liability. However, an employer will most often be responsible for the actions of its employees. |
Subject:
Re: tactics of a corporation suing another corporation
From: pafalafa-ga on 03 Dec 2004 12:12 PST |
If you ask me (which you did, sort of), the main reason for naming individual empployees is to create prosecutorial pressure on real people. If it's only the corporation at fault, no one's really sweating all that much, but as soon as possible liability is on an individual's shoulders, then they're much more likely to spill the beans in exchange for cutting a deal with the prosecution. Going after mid-level players in that way is often the way to get them to squeal on the bigger fish. paf |
Subject:
Re: tactics of a corporation suing another corporation
From: alex101-ga on 04 Dec 2004 06:28 PST |
In Civil Litigation, suing individual employees can cause embarrassment but almost never personal liability unless they did something either really bad (ex. gross negligence) or something outside of the scope of their employment. An employer is almost always resposible for the acts of its employees. I wasn't thinking about Canada when I made my last comment so the State Court vs. Federal Court analysis may or may not apply. I know relatively little about Canadian law. |
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