Transnational Corruption and Corporations: Regulating Bribery through Corporate Liability

294 Pages·2013·3.379 MB·English

by  Simeon Obidairo

TRANSNATIONAL CORRUPTION
AND CORPORATIONS
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Transnational Corruption
and Corporations
Regulating Bribery through Corporate Liability
SIMEON OBIDAIRO
African Development Bank, Tunis, Tunisia
First published 2013 by Ashgate Publishing
Published 2016 by Taylor & Francis
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
711 Third Avenue, New York, NY 10017, USA
Routledge is an imprint of the Taylor & Francis Group, an informa business
Copyright © Simeon Obidairo 2013
Simeon Obidairo has asserted his right under the Copyright, Designs and Patents Act, 1988,
to be identified as the author of this work.
All rights reserved. No part of this book may be reprinted or reproduced or utilised
in any form or by any electronic, mechanical, or other means, now known or
hereafter invented, including photocopying and recording, or in any information
storage or retrieval system, without permission in writing from the publishers.
Notice:
Product or corporate names may be trademarks or registered trademarks, and are
used only for identification and explanation without intent to infringe.
British Library Cataloguing in Publication Data
Obidairo, Simeon.
Transnational corruption and corporations: regulating bribery through corporate liability.
1. International business enterprises – Corrupt practices. 2. Bribery. 3. Foreign trade
regulation. 4. International business enterprises – Law and legislation.
I. Title
364.1’68-dc23
The Library of Congress has cataloged the printed edition as follows:
Obidairo, Simeon.
Transnational corruption and corporations: regulating bribery through corporate liability /
By Simeon Obidairo.
pages cm.
Includes bibliographical references and index.
ISBN 978-1-4094-5520-2 (hardback: alk. paper)—ISBN (ebook) 978-1-4094-5521-9—
ISBN (epub) 978-1-4724-0408-4
1. Corporations—Corrupt practices. 2. Bribery. 3. Criminal liability of juristic persons.
4. Criminal liability (International law) I. Title.
K5216.O25 2013
345’.04—dc23
2012044667
ISBN: 978-1-409-45520-2 (hbk)
ISBN: 978-1-315-54989-7 (ebk)
Contents
List of Cases vii
List of Abbreviations/Acronyms xi
Foreword xiii
Acknowledgements xv
1 Introduction 1
2 Corruption: The General Debate 11
3 Regulating Bribery 43
4 Multilateral Regulation of Transnational Bribery 79
5 Selected Challenges in the Regulation of Transnational Bribery:
A Case Study of the OFFP 119
6 Limits of National Regulation: Liability Regime for Corporations 169
7 Liability for Bribery within the Agency Framework of the
Contracts Theory 209
8 Conclusion 235
Bibliography 241
Index 271
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List of Cases
United Kingdom
Anglo-Iranian Oil Co. v Jaffrate [The Rose Mary] [1953], 1 W.L.R. 246.
Attorney-General’s Reference (No. 2 of 1999) [2000], Crim. App. Eng.
Blad v Bamfield [1974], 3 Swans, 604.
Bradford Election Case (No 2) [1869], 19 LT 723.
Calland [1967], Crim LR 236.
Carr-Briant [1943], K.B. 607.
Compania Naviera Vascongado v Critina SS [1938], A.C. 485.
Cooper v Slade [1856], 10 E.R. 1488.
Czarnikow v Rolimpex [1978], 3 W.L.R. 274.
Dobree v Napier [1836], 2 Bing. N.C. 781.
Duke of Brunswick v King of Hanover [1848], 2 H.L. Cas. 1.
H.L. Bolton (Engineering) Co. v T.J. Graham & Sons, Ltd. [1957], 1 Q.B. 159.
Harrison [1800], 1 East PC 383.
In re Claim by Helbert Wagg & Co. [1956], 1 Ch. 323.
Lindley [1957], Crim LR 321.
Llewellyn-Jones [1968], 1 Q.B. 429.
Lonrho Ltd. v Shell Petroleum Co. Ltd. [1980], 1 W.L.R. 627 (H.L.).
Luther v Sagor [1921], 3 K.B. 532.
MacKinnon v Donaldson Lufkin & Jenrette Securities Corp. [1986], 1 All
E.R. 653.
MacKinnon v Donaldson Lufkin & Jenrette Securities Corp. [1986], All E.R. 653.
Meridian Global Funds Management Asia Ltd v Security Commission [1995],
2 A.C. 500.
Nissan v Attorney General [1970], A.C. 179.
Oppenheimer v Cattermole [1975], 1 All E.R. 539 (H.L.).
Pomfriet v Brownsal [1600], 78 E.R. 968.
Queen v Great North of England Railway Co. [1846],L 115 Eng. Rep. 1294 (Q.B.)
R (Corner House Research and Campaign Against Arms Trade) v Director of the
Serious Fraud Office [2008], EWHC 714 (Admin).
R (Corner House Research and Campaign Against Arms Trade) v Director of the
Serious Fraud Office [2008], EWHC 714 (Admin), at pars 57-60.
R v Andrews-Weatherfoil Ltd., [1972], 1 All E.R. 65 (C.A.).
R v Associated Octel Co Ltd [1996], 1 W.L.R 1543.
R v Braithwaite [1983], 2 All E.R. 87.
R v Gateway Foodmarkets Ltd [1997], IRLR 189.
R v Grossman [1981], 73 Cr.App.R. 302.
viii Transnational Corruption and Corporations
R v Gurney [1867], 10 Cox CC 550.
R v H. M. Coroner for East Kent, [1987] 88 CA. 10 (Q.B).
R v Natchi [2002], 2 Cr.App.R 20.
R v P&O Eur. Ferries (Dover), Ltd., [1990], 93 CA 72.
R v Parker [1985], Crim LR 589.
R v Smith [1960], 2 Q.B. 423 (CA).
R v Wellburn [1979], 69 Cr.AppRep 254.
Rio Tinto Zinc Corp. v Westinghouse Elec. Corp. [1978], A.C. 547 (H.L.).
Salomon v Salomon & Co. [1897], A.C. 22.
Tesco Stores Ltd v London Borough of London Borough of Brent (1993), [2 All
E.R. 718]
Tesco Supermarkets, Ltd. v Nattrass [1972], A.C.. 153 (H.L.).
Vaughan [1769], 98 E.R. 308.
X AG v A Bank [1983], 2 All E.R. 464.
United States
Alfred Dunhill of London, Inc. v Republic of Cuba, 425 U.S. 682 (1976).
American Banana Co. v United Fruit, 213 U.S. 347 (1909).
Angelo Tomasso, Inc. v Armor Constr. & Paving, Inc., 447 A.2d 406 (Conn. 1982).
Asahi Metal Indus. Co., Ltd. v Superior Court, 107 S. Ct. 1026 (1987).
Associated Radio Service Co. v Page Airways, Inc., 624 F.2d 1342 (5th Cir. 1980).
Automotriz del Golfo de California S. A. de C. V v Resnick, 306 P.2d 1 (Cal. 1957).
Banco Nacional de Cuba v Sabbatino, 376 U.S. 398 (1964).
Bank of Augusta v Earle, 38 U.S. (13 Pet.), 519 (1839).
Calnetics Corp. v Volkswagen of America, 532 F.2d 674 (9th Cir. 1976).
Carpenter v United States, 484 U.S. 19 (1987).
Collet v American Nat’l Stores, Inc., 708 S.W.2d 273 (Mo. Ct. App. 1986).
Commonwealth v Proprietors of New Bedford Bridge, 68 Mass. (2 Gray) 339
(1854).
Dooley v United Technologies Corp., 803 F. Supp. 428 (D.D.C. 1992).
Enron Corp. Sec., Derivative & ERISA Litig., No. H-01-3624, 2003 U.S. LEXIS
1668, at *32 (S.D. Tex. Jan. 28, 2003).
Environmental Tectonics v W.S. Kirkpatrick, Inc., 847 F.2d 1052 (3rd Cir. 1988).
Evans v United States, 504 U.S. 255, 266 (1992).
Granite Constr. Co. v Superior Court, 149 Cal. App. Cal. Rptr. 3 (1983).
Harrison v Equitable Life Assurance Society of the U.S., 435 F. Supp. 281(W.D.
Mich. 1977).
Hartford Fire Ins. Co. v Cal., 509 U.S. 764 (1993).
In re Grand Jury Proceedings (United States v Field), 532 F.2d 404 (5th Cir. 1976).
In re Sarrio S. A., 1995 WL 598988 (S.D.N.Y. Oct. 11, 1995).
Ings v Ferguson, 282 F.2d 149 (2d Cir. 1960).
Interstate Circuit, Inc. v United States, 306 U.S. 208 (1939).
List of Cases ix
Int’l Shoe Co. v State of Wash., 326 U.S. 310.
Kahn v. Lynch Communication Sys., Inc., 638 A.2d 1110, 1114-1115 (Del. 1994).
Lamb v Phillip Morris, Inc., 915 F.2d 1024 (6th Cir. 1990).
Louis K. Liggett Co. v Lee, 288 U.S. 517 (1933).
Ludwig v Western Union Tel. Co., 216 U.S. 146 (1910).
McGee v Int’l Life Ins. Co., 355 U.S. 220 (1957).
McNally v United States, 483 U.S. 350 (1987).
Milliken v Meyer, 311 U.S. 457 (1940).
Municipality of Anchorage v Hitachi Cable, Ltd., 47 F. Supp. 633 (D. Alaska 1982).
New York Central & Hudson River Railroad v United States, 212 U.S. 481 (1909).
Parmelee Transportation Co. v Keeshin, 292 F.2d 794 (7th Cir. 1961).
Pullman Co. v Kansas, 216 U.S. 56 (1910).
Railroad Tax Cases, 13 F. 722 C.C.D. Cal. (1882).
Securities and Exchange Commission v Banca Della Svizzera Italiana, 92 F.R.D.
111 (S.D.N.Y. 1981).
Societe Internationale pour Participations Industrielles et Commerciales, S.A. v
Rogers, 357 U.S. 197 (1958).
Societe Internationale v McGranery, 111 F. Supp. 435 (D.D.C. 1953).
Societe Nationale Industrielle Aerospatiale v U.S. District Court (S.D. Iowa), 107
S.Ct. 2542 (1987).
Southern Ry. v Greene, 216 U.S. 400 (1910).
Standard Oil Co. of New Jersey v United States, 221 U.S. 1 S.Ct. 502 (1911).
State v Morris & Essex Railroad Co., 23 N.J.L. 360 (1852).
Sterling Nelson & Sons, Inc. v Rangen, Inc., 235 F. Supp. 393 (N. Idaho 1964).
Sugar Inst., Inc. v United States, 297 U.S. 553 (1936).
Timberlane Lumber Co. v Bank of America, 549 F.2d 597 (9th Cir. 1976).
Trade Dev Bank v Continental Ins. Co., 469 F.2d 35 (2d Cir. 1972).
Trustees of Dartmouth College v. Woodward, 17 U.S. (4 Wheat.) 518, (1810).
Underhill v Hernandez, 168 U.S. 250, 252 (1887).
United States v Aluminum Co. of America, 148 F.2d 416 (2d Cir. 1945).
United States v American Totalisator Co., 3 FCPA Rep. 699.067 (D. Md. 1993).
United States v Bank of New England, 821 F.2d 844 (1st Cir. 1987).
United States v Barber, 668 F.2d 778 (4th Cir. 1982).
United States v Barta, 635 F.2d 999 (2d Cir. 1980).
United States v Basic Constr. Co., 711 F.2d 570 (4th Cir. 1983).
United States v Basu, (D.D.C. 2002).
United States v Bronston, 658 F.2d 920 (2d Cir. 1981).
United States v Bryza, 522 F.2d 414 (7th Cir. 1975).
United States v Cauble, 706 F.2d 1322 (5th Cir. 1983).
United States v First National Bank of Chicago, 699 F.2d 341 (7th Cir. 1983).
United States v First National City Bank, 396 F.2d 897 (2d Cir. 1968).
United States v Harris Corporation, John D. Iacobucci and Ronald L. Schultz, (Cr.
No. 90-0456), N.D. Cal., 1990.
United States v Holzer, 816 F.2d 304, (7th Cir. 1987).