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Corrections Corporation of America Message Board

  • olddaddygram olddaddygram Mar 13, 1999 3:13 PM Flag


    I have worked at prisons as a volunteer for many
    years. Many public and private facilities are minimum
    security. Some don't even have fences. The people held
    there have only a short time to serve. However, they do
    walk away. Most are not dangerous - probably less
    dangerous to society as to themselves. Many have serious
    substance abuse problems. For what ever reason they "break
    out", they are usually caught in a few days and
    returned to the system for a much longer sentence.
    Breaking out of a medium or maximum security prison
    presents a very different problem, but the percentage of
    "escapes" is much higher in the minimum security systems.

    Regarding getting sued, most private and all public prisons
    have an inhouse staff of lawyers. Prisoners sue every
    day, for just about anything they can imagine will be
    heard by a Judge. Probably one percent of the cases
    ever go to trial. In my judgement, PZN is at much less
    risk of paying out damages from being sued than OPCO.
    Our employees are not exposed to prisoners like
    guards and transporters, we are in the REAL ESTATE
    business. We are in the business of leasing space, not
    overseeing inmates. I don't believe that most stockholders
    realize that under the new setup, our liability has been
    reduced. Doc now has that risk and certainly he will be
    rewarded for it, but there will be enough crumbs that fall
    of the table to take care of PZN stockholders.

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    • A good friend of my is on the Board of a NYSE
      firm. The firm provides him with personal liabilty
      insurance in the many million range in case HE is suited
      personally. The problem is this is not a small comapny and
      $15-20MM in personal liabilty insurance would not cover
      all the liability when the suits begin to fly. He is
      nervous all the time about his personal exposure to the
      company and it's finances. This is real life.

      Seeing what my friend goes through gives me comfort
      about the conflicts perceived in this merger. No member
      WANTS to increase his or her personal liabilty to the
      company they serve unless there is a sound reason to do
      so, IMO.

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