Dec 29 2008
dairies giving melamine babies one-time packages
I didn’t think I’d be seeing any interesting resolution of the milk scandal from earlier this year that would be worth posting… but lo and behold, Yahoo decided to post an article ( h/t to China Digital Times) entitled “ Chinese Dairies to Compensate Melamine Victims“. I’d seen news about the Sanlu trials, but didn’t think anything special enough to comment about them. (that may change of course) But here’s the article, which triggered some thoughts:
Chinese dairy companies that sold melamine-tainted milk are ready to pay compensation to the families of the nearly 300,000 children who became ill or died from drinking contaminated infant formula, a state news agency reported Saturday.
Twenty-two dairy producers will make a one-time cash payment to the victims’ families, China’s Dairy Industry Association announced, although it did not disclose an amount, the official Xinhua News agency said.
“The money for compensation is in place now and will soon be handed to the people who have custody of the sickened children through various channels,” the association said. The group did not specify a date.
The issue of compensation for the young victims has been a highly sensitive one, with Chinese courts so far not accepting any lawsuits filed by the families.
It’s interesting to consider that the courts refuse to accept lawsuits, and that payment up until this point has been handled only by the government. (in an attempt to tide public unrest and excessive use of the legal system) Now it looks like the companies are ready to turn in a compensation package… but more than that, I wonder if this is more or less the formal apology to the people.
People who understand the U.S. legal system understand that often these sort of tort cases go on because plaintiffs want an apology. And they proceed to trial because of “principle”. Settlement is sometimes the goal of plaintiffs, but often, more so the goal of the lawyers involved. (and yes, I’ve done plaintiff’s work) I think that many of the plaintiffs I’ve represented would have gladly taken less if the company was crazy enough to just admit liability and issue an apology. (that never happens for PR, liability, and a whole host of other reasons) But what if they did?
And so I am left wondering if Sanlu and other dairies are making this event into a pay-off or an apology… the former would place them in good company with American corporations. The latter would place them into foreign territory… and yet, everyone already knows the companies sold tainted goods. The court of public opinion is already against them. And what better way to stave off lawsuits than to just give the darn apology? Is it that hard? It is in America. Perhaps this isn’t the case in China… I’m curious as to how the companies are going to maneuver the PR around this case. I hope its an apology… its about time someone finally stepped up to the plate and owned up to their mistakes.
Yes, Chinese dairies, I hope your performance shames American companies. That would be a sight to see!
