징벌적 손해배상제도에 관한 비판적 고찰
저자
발행사항
서울 : 高麗大學校 大學院, 2014
학위논문사항
발행연도
2014
작성언어
한국어
주제어
발행국(도시)
서울
기타서명
(A) critical review on implement of punitive damages in Korea
형태사항
xiii, 293 p. ; 26 cm
일반주기명
지도교수: 金奎完
참고문헌(p. 256-278)과 색인수록
DOI식별코드
소장기관
In 2013, the Korean Congress passed the Fair Transactions in Subcontracting Act that introduced treble damages to the field of law for the first time in Korea. This act encountered fierce opposition from academia because of concerns that it would blur the distinction between civil and criminal law. Despite this opposition, however, the Korean government began diligently laying out plans to extend the application of punitive damages to other areas within civil law. I believe that the Fair Transactions in Subcontracting Act is one of the pre-established damages, which is regulated by the statute. Statutory damages and punitive damages are not same in their nature in Common Law, but it might have been confused when their concept was accepted to the public in South Korea.
Unlike in Korea, the United States enforces punitive damages awarded to plaintiffs in civil trials in order to punish defendants in cases of willful and wanton wrongdoing. However, in recent days, existing trends of punitive damages in the United States are limiting and downsizing rather than expanding. First of all, as to quantum of punitive damages, a lot of states have been capped within a reasonable scope. As damages awarded by a jury can be unpredictable, excessive amounts can be awarded that violate due process (i.e., BMW v. Gore). In addition, for normative necessity of judgments when awarding damages, not only judge-assessed punitive damages are gathering strength as an another option for controling the disadvantages of punitive damages, but also a bifurcated trial, which allows liability to be found at the initial trial and then allow the fine to be based on proof of the defendant’s wealth. Some states courts provide instructions to the jury and review, after the trial, whether a proper amount was awarded as well (i.e., Honda Motor Co. Ltd. v. Oberg).
There are several grounds for my arguments, which can be divided two section of substantive tort liability system and tort litigation. First and foremost, the differences in substantive tort law between laws of Korea and United States's is the reason. The primary purpose of Korea tort liability is compensation, not punish and deter like torts law of Common Law system. Also, the size of damages tend to be influenced by interests of the general public than by those of the immediate parties. This is merely the domain of penal law, not private law. Consequently, imposition of punitive damages can bring about the confusion of Civil law system to South Korea. On top of that, regarding tort litigation, there are some differences between the civil law system and those of Common law. In terms of the role of jury and judges, we don't have civil juries, whereas jury trial is almost the basic trial in American tort litigation. Furthermore, as regards to evidence, civil actions in the United States are much more the private business of the parties and their attorney than those of South Korea. For instance, the discovery including pretrial discovery, don't exist in South Korea. The unique discovery system in the United States costs a lot of money to the parties, and it usually brings about the high legal costs to the parties. Third, we should consider the problems of the awarded money to the plaintiff in the trial. Considering the effect and purpose of law, the awarding of punitive damages can be an undeserved windfall for the plaintiff. Since punitive damages are imposed in the form of a criminal fine to punish and deter, the fine should be split with the state rather than forced upon the plaintiff in order to achieve the original goal. Also, concerning a defendant’s wealth, which is one of the requisites for establishment, when multiple defendants are involved, a single verdict based on the wealth of one defendant would appear to be unjust to the other defendants.
The theory of punitive damages cannot exercise its function efficiently, contrary to initial expectations. First, to punish defendants, the punitive damages is generally recognized without constitutional protections unlike criminal procedure. Even though the degree of the burden of proof is lower than the criminal law and calculated without restraint in the Constitution, but the effect of this civil penalty is similar to those standards in criminal law. It is contradictory that we would want to be able to have the same effect with different standards. Second, as regards to features of deterrence, it can bring about some problems as follows. Among the culpable acts, it may exist that it can not be seen as the intentional acts. In compared with the imposition of punitive damages and practical effect occurred due to these illegal acts, it might not exercise its deterrent function at all. And with regards to the consumer protection against the profit-making of the corporations, the companies can allot a lot of money to the consumer price taking into consideration the concerns for punitive damages as to pay for it together in advance. It may raise the burden of consumers in the long term consequences to the results. In other words, ultimately, the outcome of enforcement of punitive damages theory for consumer protection may conflict with the orignal intentions. Furthermore, the proponents for introduction of punitive damages to the South Korea had hoped the enforcement of the highest amount of punitive damage payments, but it is merely an exception rather a general case. On average individual's case, $5,000 to $50,000 and in the case of the company receive only of about $100,000 to $1000,000 in punitive damages. Those average amount of punitive damages is similar to the amount of pain and suffering or a fine from Fair Trade Commission (FTC) in South Korea. In my opinion, for the afore-mentioned grounds, it would be difficult to apply and enforce the theory of punitive damages efficiently as general provision to the Continental Law System to which South Korea subscribes.
However, I do not deny the need for introduction statutory damages in individual laws and regulations. The statutory damages are not departed significantly from the principle of compensatory damage. Rather, it can achieve the substantial compensation for victims. So statutory damages are not excessive like punitive damages. Also, Statutory damages are fixed the upper limit. Therefore, this features can complement the issues that might appear in punitive damages. Another necessity of statutory damages is that calculating the losses could be reasonably able to operate in actual damages. So it can be effective remedies for defendants against massive, repeatedly, outrageous, wrongful acts and additionally prevent the occurrence of illegal actions in the future. The distinctions between statutory damages and punitive damages are as follows: the difference of the purposes, statutory damages is decided its capping amount in advance, the distinction of requirements to be recognized, and permission whether the damages are allowed or not in contracts.
Based on these grounds, I concluded that it is not necessary to consider the introduction of punitive damages in torts in Korea. However, I don't consider negatively regarding the implementation of statutory damages as part of an political scheme, in accordance with the teleological approach for specific law.
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