U.S. v. Ionia Management S.A.

NCLC urged the Second Circuit to reject a district judge’s jury instructions that would allow the corporate defendant to be held criminally liable for the actions of a low-level employee, even if the employee acted in direct contravention of corporate policy. In its brief, NCLC argued that the statutes under which the defendant was charged did not indicate that Congress intended to impute criminal liability on employers for their employees’ misconduct. Moreover, NCLC explained, the Supreme Court has rejected application of respondeat superior in analogous cases. NCLC also noted that a respondeat superior standard would make it easier to impute liability in criminal settings than in civil settings.

The U.S. Court of Appeals for the Second Circuit ruled that a corporate defendant could be criminally liable on a theory of respondeat superior even if a well-executed corporate compliance program were in place. The decision could have the strange result of making it easier to impute liability in criminal settings than in civil settings.

Amicus brief filed 6/6/08. Oral argument held 11/21/08. Decided 1/20/09.