Corporate Criminal Liability and Vicarious Liability, Research Paper Example

Introduction

The generality stating that employers are liable for the actions of any person they employ has merit. Employers have authority in hiring decisions and the supplementation of supervisors and subordinate managers. It is incumbent on the employer to hire the employee, and then sustain constant vigilance on that employee’s performance, enforcing corrective measures when necessary. The selection process for employment falls entirely into the employer’s hands, and subsequent monitoring and training must occur.

Criminal vs. Vicarious Liability

Common law dictates that criminal liability has to be personal, rather than vicarious, in order for the corporation to be held responsible. Vicarious liability occurs through the employee, rather than by any direct action of the corporation itself. However, if the scope of employment encompasses the illegal act, the employer can be held criminally liable for the actions of the employee. The scope of employment includes actions assigned as one of the duties of the employee’s employment, actions committed during work hours at the workplace, and actions that can reasonably be found to benefit the employer (Jrank.org, 2010). All of these circumstances pertain to vicarious liability for the corporation.

If the illegal actions were solicited in any way, the corporation can be held criminally responsible. This includes a reasonable negligence or recklessness on the part of the corporation, causing the employee to commit the illegal act. The category of responsibility assigned to the corporation is dependent on direct or vicarious intent of an employer’s policies.

Vicarious and Corporate Liability in a Healthcare Environment

A hospital often gets sued for the mistakes or medical malpractice of its doctors. The hospital is merely the employer, an institution rather than a direct actor, and is therefore held vicariously liable for the actions of the doctors in its employ. At one time, a hospital was immune from litigation because it was considered to be a charitable organization (PlaintiffMagazine.com, 2004). Today, however, whether a hospital is deemed a nonprofit organization or not, it is still akin to a corporation and must be responsible for the actions of its doctors (nolo.com, 2010).

The rules of respondeat superior now apply to physicians who are under the control of the overriding Board of Directors for a hospital (Scribd.com, 2007). There are several reasons for the change in hospital liability. One reason is the wider scope of the hospital, surpassing its former role of merely furnishing the facilities necessary for treatment (Jrank.org, 2010). Many employment decisions are made with respect to a salary basis from the physician staff to even the manual workers. Additionally, the hospital acts more like a corporation due to the fact that it charges patients for medical aid and use of the facilities. There is also a reasonable assumption that in enlisting the care of a physician, the patient expects to be cured for his condition. The doctor is not expected to act on his own responsibilities, but is considered to act in the interests of its employer in providing  care to the patient (Nolo.com, 2010).

References

Bedard, M. K. “When is a hospital liable for a physician’s malpractice?”. (2004). Retrieved on October 24, 2010 from PlaintiffMagazine.com: http://www.plaintiffmagazine.com/July08%20articles/Bedard_When%20is%20a%20hospital%20liable%20for%20a%20physicians%20malpractice_Plaintiff%20magazine.pdf

Guerin, Lisa. “Employer Liability for an Employee’s Bad Acts”. (2009). Retrieved on October 24, 2010 from Nolo.com: http://www.nolo.com/legal-encyclopedia/article-29638.html

Kraakman, R. H. “Vicarious and Corporate Liability”.  (2007). Retrieved on October 24, 2010 from Scribd.com: http://www.scribd.com/doc/239260/Vicarious-and-Corporate-Civil-Liability

“Vicarious Liability – Corporate Criminal Liability”. (2010). Retrieved on October 24, 2010 from JRank.org: http://law.jrank.org/pages/2251/Vicarious-Liability-Corporate-criminal-liability.html