The controversial costs create «perverse incentives» for defendants to plead guilty; are a «grossly disproportionate» punishment for many offences; leave no discretion for judges or magistrates to vary the charge and
undermine compensation awards to victims, according to the MPs.
In the world before the Supreme Court's recent Philip Morris decision, the risk of giving the plaintiff — who might only be one of many victims of the defendant's conduct — the entire punitive damages
award was that it would more likely
undermine the state's in - terest in ensuring a fair distribution of both compensatory and retributive damages for oth - ers, since a crippling retributive damages
award might impair the availability of adequate
compensation funds (or punitive damages) for future claimants.