Business Law 531
January 10, 2011
Tort and Regulatory Risk
Alumina is a $4 billion manufacturing company based in in the United States which has a business interest of aluminum components and a manufacturer of bauxite mining, alumina refining, and alumina smelting. Alumina operates in eight countries around the world and account for 70% of its sales in the United States. Alumina has recently been threatened with a lawsuit from a local resident. Kelly Bates claims that Alumina repeatedly contaminated the waters of Lake Dira with carcinogenic effluents and the consumption of the water has caused her 10-year old daughter to have leukemia. The leukemia was diagnosed as early as the first violation of environmental laws. Proving they have not violated any tort laws depends on Alumina’s burden of proof. Kelly claims of negligence and violations of regulatory compliance require Alumina to construct a plan to identify preventive, detective and corrective measures.
Alumina must also identify common torts and regulatory risks and describe specific measures to manage the regulatory risks.
Alumina’s Violations. Five years ago, The EPA, Environmental Protection Agency, cited Alumina for violations of environmental discharge norms. The PAH samples were above prescribed limits and the EPA ordered a cleanup. Alumina did comply with the EPA’s recommendations and on the next audit cleared Alumina of any violations. Other than this one incident, Alumina has maintained a clean record. Kelly Bates, a local resident, claims that the violation has caused injuries to her 10-year old daughter. Alumina is accused of negligence by causing injuries to Kelly’s daughter and also with violating regulatory compliance laws. The risks associated with these allegations have prompted Alumina to act quickly to find a resolution.
Regulatory Risks. Under tort law, an injured party can bring a civil lawsuit to seek... [continues]
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