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Civil Litigation Implications of Corporate Employees' Criminal Acts

By Bertrand C. Sellier
April 01, 2004

When corporate employees engage in criminal wrongdoing, the result is often civil litigation against their employer. The criminal conviction of such employees, whether by trial or plea, or their invocation of the privilege against self-incrimination, can have serious adverse consequences in related civil litigations against their employer, even if the employee (or former employee) is not a party. This article discusses the use of such evidence against corporations.

Admissibility of Prior Convictions

Federal Rule of Evidence (FRE) Rule 803(22) provides an exception to the hearsay rule for convictions and guilty pleas, and any final judgment finding a person guilty of a crime punishable by imprisonment for more than one year can be used as evidence to prove any fact essential to sustaining that judgment. While Rule 803(22) does not apply to convictions or guilty pleas of third persons when offered as evidence in a criminal prosecution, there is no similar qualification for civil trials. Thus, a non-party's conviction may be used to prove any facts essential to that conviction in a civil case. American Intl. v. Towers Fin. Corp., 1997 U.S. Dist. LEXIS 22610 (S.D.N.Y.).

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