Comments on: Attorneys General in Virginia and North Carolina continue to prosecute Hurricane Ike price gouging cases http://knowledgeproblem.com/2009/10/26/attorneys-general-in-virginia-and-north-carolina-continue-to-prosecute-hurricane-ike-price-gouging-cases/ Commentary on Economics, Information and Human Action Mon, 21 May 2012 15:20:05 +0000 hourly 1 http://wordpress.com/ By: Michael Giberson http://knowledgeproblem.com/2009/10/26/attorneys-general-in-virginia-and-north-carolina-continue-to-prosecute-hurricane-ike-price-gouging-cases/#comment-9926 Mon, 26 Oct 2009 20:07:15 +0000 http://knowledgeproblem.com/?p=5754#comment-9926 Elsewhere I have mentioned my distaste for using state-funded legal action as a tool for raising contributions to private charity. Does an Attorney General really have the legal authority to negotiate contributions to private charities as a way of avoiding trial for alleged crimes? If I’m charged with burglary, can I beg off prosecution by contributing to a Neighborhood Watch fund?

If the AG wants to negotiate a payment to the state “in lieu of” civil penalties, that seems reasonable: the AG is an agent of the state. Using taxpayer supported criminal investigations to drum up money for a private charity does not seem reasonable to me.

Related, this discussion of cy pres awards in class action suits. Cy pres awards are payments made to charities not directly involved in the class action suit but involved in actions that can be construed as providing somehow related relief. The price gouging cases don’t involve a class action suit, but otherwise the similarities are strong.

]]> By: Fred H Schlegel http://knowledgeproblem.com/2009/10/26/attorneys-general-in-virginia-and-north-carolina-continue-to-prosecute-hurricane-ike-price-gouging-cases/#comment-9925 Mon, 26 Oct 2009 18:48:23 +0000 http://knowledgeproblem.com/?p=5754#comment-9925 Beyond simply avoiding penalties, they avoid lawyer fees. The settlements were probably just 25% of what the case might have cost going to trial.

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