Recognizing And Minimizing Tort And Regulatory Risk

Webster’s dictionary defines tort as “a wrongful act other than a breach of contract for which relief may be obtained in the form of damages or an injunction” (Merriam-Webster Online dictionary, 2008).  Alumina, Inc. has developed an overall good reputation in regards to its compliance with EPA regulations and standards. Regardless, as a large company, it is still subject to tort liability. Approximately five years ago, Alumina was found to be in violation of EPA standards for effluent discharge and was ordered to clean up the area. Alumina promptly complied, and with the exception of this one incident, has maintained a solid record of compliance. An article in the local newspaper was recently published in which it accused Alumina’s single EPA standards violation as the sole cause for a local ten year old’s leukemia. Kelly Bates, the child’s mother, has accused Alumina of causing the leukemia by discharging effluent with higher than allowable PHA levels into the lake. The lake is the community’s sole source of drinking water, and Ms. Bates maintains that Alumina’s five year old regulatory infraction is responsible for her daughter’s illness. While there are still numerous legal remedies available to Alumina, having a plan in place to address issues such as this would be the most effective manner of dealing with the situation.
In order to prevent, or at least minimize, the damage to Alumina’s reputation, as well as potentially high monetary losses, it is recommended that Alumina conduct random, third party site surveys on a semi annual basis to ensure compliance with all EPA standards for discharge of effluent in the lake. Not only will this allow Alumina to address any potential issues of non compliance in an effective manner, it will also allow the company to n ...
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