SLP Badge Transparent.png
Read the
State Legislative Tracker
New edition available now!




Colorado Initiative 57 (2008)

From Ballotpedia
Jump to: navigation, search
Not on Ballot
Proposed allot measures that were not on a ballot
This measure did not or
will not appear on a ballot

The Criminal and Civil Liability of Business Personnel Initiative, or Initiative 57, would have made business executives, directors, officers, and certain other employees criminally and civilly responsible for violations of law by their companies and would have allowed any Colorado resident to sue the business personnel under such circumstances. Proceeds from successful suits would have gone to the state, but individuals filing successful suits would be able to recover their legal costs.

The measure was a citizen-initiated state statute.

The official ballot title for the initiative read:

An amendment to the Colorado Revised Statutes concerning liability for criminal conduct of businesses, and, in connection therewith, extending criminal liability to a business entity's directors, officers, and employees and agents who formulate a business's policies or supervise employees, if the business fails to perform duties that are required by law or if management engages in, authorizes, solicits, requests, commands, or knowingly tolerates the business’s criminal conduct; allowing any Colorado resident to bring an action for civil damages against a business or its agent for such criminal conduct; requiring that awards in civil actions be paid to the general fund of the state of Colorado; permitting an award of attorney fees and costs to a citizen who brings a successful civil action; and allowing persons who disclose to the attorney general all facts known to them concerning a business's criminal conduct to use that disclosure as an affirmative defense to criminal or civil charges.

Details of the initiative

The proposed initiative would have:

  • Provided criminal liability for an executive official, director, officer, and certain other employees for failure to discharge a specific duty imposed on the business entity by law when the executive official knew or should have known of the specific duty to be performed.
  • Recognized a valid defense to certain criminal and civil charges if the executive, director, officer, or employee, prior to being charged, reports all relevant known facts concerning the conduct of the business entity to the attorney general.
  • Allowed any Colorado resident to bring a civil cause of action on behalf of the state against a business entity or personnel of a business entity for certain conduct.
  • Awarded any damages resulting from the civil action to the governmental entity that imposed by law the duty to be performed by the business entity, and to make those moneys exempt from all revenue and spending limitations provided by law.
  • Permitted any Colorado resident who is successful in a civil action to recover reasonable attorney fees and costs.

Supporters

Leading the charge for this measure was Protect Colorado’s Future, a coalition of advocacy groups.

Protect Colorado's Future had raised more than $1.5 million by the beginning of May 2008 to support its ballot measures and to oppose the Right to Work Initiative. The biggest single contribution, $500,000, came from the Service Employees International Union. A Teamsters local contributed $250,000.[1]

A spokesman for the effort was Lew Ellingson, a former employee at Qwest Communications International—a company hit hard by an insider trading scandal. The plight of Qwest, based in Denver, was a motivation for the proposal, according to Jess Knox, executive director of Protect Colorado’s Future.

Ellington said the proposal would assign top business officers unprecedented individual accountability. "If nothing else, these folks in charge of the corporations and companies will think twice about cutting corners to make themselves look more profitable than they really are," he said.

"I don’t know who can oppose this. This is common sense," Ellington said. "We need businesses to survive, but we don't need criminals running them."[2]

Mark Grueskin, an attorney for Protect Colorado's Future, discounts arguments that the measure will lead to frivolous lawsuits, noting that legal fees are only recoverable in successful suits.

"There is an inherent disincentive to use this as a means for a gadfly to act as a corporate obstructionist," he said. "I would be surprised if there would be many responsible companies that would have a problems with this."[2]

Protect Colorado's Future also offered three other slightly different versions of the proposal, in Initiative 73, Initiative 74, and Initiative 75.

Opponents

The initiative brought strong opposition in the business community. Joe Blake, president and chief executive of the Denver Metro Chamber of Commerce, feared that the courts may be overwhelmed with frivolous lawsuits, which could bankrupt small and midsized companies and make it more difficult for legitimate lawsuits to succeed.[2]

"We're very concerned that any number of people could crowd the docket and frustrate the court system with suits that are perhaps well-intentioned but highly frivolous," Blake said. "We're going to have chaos out here."[2]

The Chamber of Commerce filed a lawsuit April 2, 2008, to challenge the initiative, according to Doug Friednash, a lawyer for the chamber. He said the language could mislead voters into thinking they were supporting a measure that simply cracked down on crooked executives, as opposed to one that left business owners and other employees open to lawsuits.[2]

The Colorado Association of Commerce and Industry also came out in opposition to the measure. In explaining their opposition to this measure and five others the group opposed, CACI warned that "the political balance in the state is in danger of being tipped in favor of unions, which will be detrimental to the state's economic future."[3]

The Denver Metro Chamber of Commerce launched a group called Coloradans for Responsible Reform, which raised money from business interests to oppose this initiative as well as numerous other initiatives that they saw as anti-business.[4]

The National Federation of Independent Business of Colorado announced May 1, 2008, that it has joined Coloradans for Responsible Reform in the effort.[4]

Status

The initiative's title was set. Supporters needed to collect 76,047 valid signatures to make the November 2008 ballot.

The measure survived a challenge from the Denver Metro Chamber of Commerce, which appealed the language of the initiative before the Title Board, arguing that the initiatives did not constitute single subjects and would hurt Colorado businesses. The Title Board denied the motion, but the Denver Metro Chamber of Commerce appealed the Title Board's ruling to the state Supreme Court. The Supreme Court ruled that the measure did not violate the single-subject rule.[5] In the end, the measure did not make the ballot.

See also

External links

References