Law and Contemporary Problems

No country so empowers its citizens to redress the social harms committed by others as does the United States. Compensating the injured and deterring future violations are frequently seen as complementary objectives of private suits. Our legal system further affirms its commitment to compensation and deterrence through modern joinder rules and class action procedures, not to mention contingency fee arrangements that shift the risks of litigation from the plaintiff to the attorney who can better absorb the suit’s risks. The lofty vision that a private suit deters misbehavior while also compensating its victims is not free of doubt; the unease with this proposition is greatest when the source of the misconduct is committed by corporations. This article examines the linkage between private litigation and the deterrence of corporate misconduct. Part II considers whether holding the entity strictly liable for the misconduct of its agents maximizes the deterrence effects of vicari-