It’s certainly unconstitutional, but not necessarily for that reason. I’d point instead at the prohibition of bills of attainder, rather than cruel & unusual punishments.
Here’s the core of the proposal:
It would be possible to pass a law that such-and-such a corporation has, due to its past bad actions, been designated as a ULC.
Such a law would closely match the notion of a bill of attainder, “an act of a legislature declaring a person (or group of people), guilty of some crime, and providing for a punishment, often without a trial.”
In the American system of law, imposing penalties for past bad actions is the role of a trial court, not the legislature.
Yes, and a trial court applying direct liability to people associated with a company who made decisions resulting in harm (“piercing the corporate veil”) is already possible under existing law. It’s uncommon but does happen.
It’s certainly unconstitutional, but not necessarily for that reason. I’d point instead at the prohibition of bills of attainder, rather than cruel & unusual punishments.
Here’s the core of the proposal:
Such a law would closely match the notion of a bill of attainder, “an act of a legislature declaring a person (or group of people), guilty of some crime, and providing for a punishment, often without a trial.”
In the American system of law, imposing penalties for past bad actions is the role of a trial court, not the legislature.
Yes, and a trial court applying direct liability to people associated with a company who made decisions resulting in harm (“piercing the corporate veil”) is already possible under existing law. It’s uncommon but does happen.