The very threat of punitive damages imposes a standard of caution on businesses and individuals. Otherwise, businesses and individuals may have little economic reason to act in the public interest. The tobacco industry s willful disregard for human life by using or hiding its knowledge of the addictive nature of nicotine will not be punished if the tobacco deal is approved. The precedent is awesome. Punitive damages are not tax deductible.
Shareholders bear the cost of corporate disregard for appropriate behavior.
The proposed deal would immunize the tobacco companies from this form of capital punishment. It also would make sure the public never knows the full nature of the tobacco companies' efforts to addict the public. It will be virtually impossible for individuals, insurance companies, labor union health plans or others to recover the full range of costs incurred as a result of tobacco-related disease. Mr. Chairman, it is clear that Senator Conrad s bill S. 1638, the Healthy Kids Act, is in sync with the will of the American people. We encourage the Judiciary Committee to consider this legislation as it moves forward.