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Toyota’s dilemma

27 February 2010 · by  Fr. Ernesto Leave a Comment

Henry Payne

Toyota is caught in a very difficult situation. But, look at the cartoon. Yes, Congress does love its “show trials,”  err, I mean “hearings.” Now, I am not sure why they call them hearings since no Congressperson listens. They ought to be called “talkies.” They have no legal effect, but they do allow the Congressperson, be they Democrat or Republican, to posture, moan, and generally get quoted on the evening news. Nowadays those “show trials” rarely lead to actual legislation. But, they allow Congress to try to climb slightly out of their primordial muck to try and take some moral high ground.

But, for the companies or persons caught up in the “show trials,” they can be devastating. There is no guilt being determined, but there is little doubt that after one of those sets of hearings, the companies or persons are left tarred as though they had been found guilty of something. Normal legal rules do not apply, so that the Congressperson can say anything, in the name of finding the truth, without being faced with any binding legal objection from the person or company being pilloried. Of course, this has a side effect that any Congressperson would claim in unintended.

The side effect are that the trial lawyers will find it much easier to get a tort judgment in their favor. In a tort (or civil) case, the standard of proof is not as high as in a criminal case. In fact, as any of several cases have demonstrated, a tort case seems to often be dependent only on the emotional climate of the jury, regardless of the facts. And, the judge is powerless to stop an emotional verdict, though they will periodically get overturned by an appeal court. But, in the case of the “defendant” in a “show trial,” the emotional climate is so warped by the “hearings” that a high money verdict is a virtual certainty.

Toyota needs to pay appropriate civil judgments for its failures in quality control. But, Congress has actually managed to make me feel somewhat sorry for them.

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