Share
Explore BrainMass

Dispute Settlement - Criminal Case

ABC is a multinational enterprise (MNE) incorporated in State X. ABC entered into a joint venture agreement with XYZ, an MNE incorporated in State Y, to jointly produce a new line of hydraulic equipment in ABC's new factory in State Z, a developing nation. ABC & XYZ have mutually agreed to have the law of State Y govern any disputes or concerns arising under the joint venture agreement. Shortly after the conclusion of the agreement, a wiring defect in ABC's factory caused it to burn to the ground, killing five tourists in the immediate vicinty who were nationals (citizens) of State Q. XYZ, fearing bad publicity, sued ABC to rescind the joint venture agreement. X,Y, & Z are all common law states, while Q is a civil law jurisdiction.

Should a criminal case be filed, analyze the possible arguments and counter-arguments that counsel for either ABC or XYZ could reasonably make for having the case heard in the municipals courts of:

a. State X

b. State Y

c. State Z

d. State Q

Should a civil lawsuit between ABC and XYZ be filed, analyze the possible arguments and counter-arguments that counsel for either ABC or XYZ would reasonably make for having the case heard in the municipal courts of:

a. State X

b. State Y

c. State Z

d. State Q

Solution Preview

SHOULD A CRIMINAL CASE BE FILED?

When a society and its government decide that certain conduct is dangerous to citizens, or damaging to the society as a whole, such conduct is labeled a "crime" and is made punishable by sanctions such as fines and imprisonment. Most crimes are identified in statutes that have been enacted by federal, state, and local government legislatures, in response to issues that affect the jurisdiction. In this case it is ABCs factory where the wiring defect has caused the fire. However, it needs to be ascertained if ABC has done something that is "damaging" to the society. That is what conduct of ABC has led to the wiring defect.

People who are found to have violated a criminal law -- whether through their own admission by a "guilty" plea, or as a result of a jury trial -- can be punished through imposition of fines, imprisonment, probation, and community service, among other penalties. Unless ABC has violated a criminal law it cannot be sued for a criminal offense.

There are two fundamentally different types of court cases -- criminal and civil. A criminal case arises when the government seeks to punish an individual for an act that has been classified as a crime by Congress or a state legislature. A civil case, on the other hand, usually has to do with a dispute over the rights and duties that individuals and organizations legally owe to each other. Among the important differences between criminal and civil cases are these:

- In a criminal case a prosecutor, not the crime victim, initiates and controls the case. The prosecutor may file criminal charges even if the victim doesn't approve, or refuse to file criminal charges despite the victim's desire that criminal charges be filed. This method of beginning the case contrasts with civil cases where the injured party is the one who starts the ball rolling -- although if you view the prosecutor as a stand-in for the community injured by a crime, then there's not much difference. So, the question of XYZ filing criminal charges does not arise. This is the work of the prosecutor.

- A person convicted of a crime may pay a fine or be incarcerated or both. People who are held responsible in civil cases may have to pay money damages or give up property, but do not go to jail or prison. (We don't have "debtors' prisons" for those who can't pay a civil judgment.)

- In criminal cases, ...

$2.19