And goodbye to an Atlanta-based lab services business [Ed Hudgins, Atlas Business Rights Center] Law-enforcement-for-profit sidelight: according to owner Michael Daugherty, allegations of data insecurity at LabMD emanated from a private firm that held a Homeland Security contract to roam the web sniffing out data privacy gaps at businesses, even as it simultaneously offered those same businesses high-priced services to plug the complained-of gaps.
“An Oklahoma state senator has filed a bill to allow law enforcement officers to issue electronic citations for traffic, misdemeanor and municipal ordinance violations.” Sen. Al McAffrey, himself a former police officer, says approaching motorists’ cars is one of the more dangerous parts of patrol officers’ job. So why not let them just skip it, even if that also means skipping the opportunity for motorists to be notified of their legal jeopardy at once, see their accusers, have a chance to explain themselves, and so forth? “If they don’t have to approach vehicles during traffic stops to give people tickets but can simply email traffic violation citations directly to the district court clerk then they’re less likely to get into a dangerous altercation, the lawmaker said.” McAffrey’s S.B. 1872 would also attach a new $5 processing fee to the tickets, of which a portion would be shared with the ticketing officer’s department. [Insurance Journal, KOCO](& welcome Above the Law, Scott Greenfield readers)
Long Island: “The head of Suffolk’s new Traffic & Parking Violations Agency on Thursday defended the controversial policy of charging an administrative fee even on tickets that are dismissed.” [Newsday]
The Economist has a short piece on the unseemly business of probation and collections companies operating under government contract that leverage misdemeanors and petty fines levied on hapless citizens into larger ongoing obligations. Local police and sheriffs’ departments share in the booty as well as sometimes lending enforcement muscle.
And Michael Greve is seen biting the steering wheel in response [Liberty and Law]
The letters to persons who have written bad checks, which threaten jail, “bear the seal and signature of the local district attorney’s office. But there is a catch: the letters are from debt-collection companies, which the prosecutors allow to use their letterhead. In return, the companies try to collect not only the unpaid check, but also high fees from debtors for a class on budgeting and financial responsibility, some of which goes back to the district attorneys’ offices.” Moreover, “the ultimatum comes with the imprimatur of law enforcement itself — though it is made before any prosecutor has determined a crime has been committed.” [New York Times; commentary, Scott Greenfield, BoingBoing]
His speech is titled “Economic Lessons from American History,” (printable PDF version) and one of the lessons has to do with loser-pays:
…if Jefferson’s decimal coinage concept was a good idea that quickly spread around the world, another idea that developed here at that time was lousy: the so-called American Rule, whereby each side in a civil legal case pays its own court costs regardless of outcome. This was different from the English system where the loser has to pay the court costs of both sides.
The American Rule came about as what might be called a deadbeat’s relief act. The Treaty of Paris (which ended the American Revolution) stipulated that British creditors could sue in American courts in order to collect debts owed them by people who were now American citizens. To make it less likely that they would do so, state legislatures passed the American Rule. With the British merchant stuck paying his own court costs, he had little incentive to go to court unless the debt was considerable.
The American Rule was a relatively minor anomaly in our legal system until the mid-20th century. But since then, as lawyers’ ethics changed and they became much more active in seeking cases, the American Rule has proved an engine of litigation. For every malpractice case filed in 1960, for instance, 300 are filed today. In practice, the American Rule has become an open invitation, frequently accepted, to legal extortion: “Pay us $25,000 to go away or spend $250,000 to defend yourself successfully in court. Your choice.” …
…policing the marketplace has long been considered a quintessential function of government. The reason for this is that when policing has been in private hands, self-interest and the public interest inevitably conflicted. The private armies of the Middle Ages all too often turned into bands of brigands or rebels. The naval privateers who flourished in the 16th to 18th centuries were also private citizens pursuing private gain while performing a public service by raiding an enemy’s commerce during wartime. In the War of 1812, for instance, American privateers pushed British insurance rates up to 30 percent of the value of ship and cargo. But when a war ended, privateers had a bad habit of turning into pirates or, after the War of 1812, into slavers.
Predictably, the American Rule has spread exactly nowhere since its inception at the same time as the decimal coinage system. There is not another country in the common-law world that uses it. … Few things would help the American economy more than ending the American Rule.
Shelby County, Ala. judge Hub Harrington had some scathing words for the town of Harpersville and a private probation company over “debtors’ prison” treatment of local defendants milked for large fines and fees. [Birmingham News via ABA Journal] More on abusive fine extraction and privatization of law enforcement here, here, etc.
One way to rein in some of the abuses — see this CNN story — would be to curb arbitrary impositions of “interest” at far higher than actual market interest rates. Very similarly, requiring the use of realistic rather than inflated interest rates would be one way to restrain tax-farming “probation” firms and other abusive privatization of law enforcement, much in the news lately, and also excessive damage awards in civil litigation (where “prejudgment” and “postjudgment” interest is often set at notional and absurdly generous levels.)