Recognizing and Minimizing Tort and Regulatory Risk
Alumina Inc. is a U.S. based international aluminum company with eight locations worldwide, worth of four billion dollars. Its business markets include “automotive components and manufacture of packaging materials, bauxite mining, alumina refining, and aluminum smelting” and the company falls under the following regulatory agencies and acts: The Environmental Protection Agency (EPA), Occupational Safety and Health Administration (OSHA), and Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). Alumina experienced legal issues that were very public. The organization falls under the control of the Environmental Protection Agency of region six. These companies, had a penalty imposed five years previously from the EPA and were now faced with a new legal issue or claim of environmental endangerment to the community with accusations from a local resident that the company take immediate action.
The Erehwon Reporter reported that Kelly Bates accused Alumina of repeatedly contaminating the waters of Lake Dira with carcinogenic effluents, and has alleged that consumption of the contaminated water is the proximate cause of her ten-year old daughter’s leukemia. The impact of such an accusation could damage the company’s good name and public image and adversely affect business by swaying public opinion. Kelly Bates, a thirty eight-year old single mother accused the company of contaminating Lake Dira and believes that the contamination of these waters is responsible for her 10 year old daughter’s leukemia. Five years before Ms. Bates’ allegation, the Environmental Protection Agency (EPA) cited Alumina for a violation related to the environmental discharge norms, ordering the corporation to do an immediate clean-up. Since the violation and subsequent clean-up, Alumina Inc. has been in full compliance with EPA regulations.
Traffic is causing water pollution in Lake Dira. Increased traffic is...