Plan for Recognizing Tort

Recognizing and Minimizing Tort and Regulatory Risk

Denise Mayo

LAW 531
LaTasha Thomas

Recognizing and Minimizing Tort and Regulatory Risk Plan

    Organizations are subject to dealing with regulatory risks such as tort liability in everyday business.   It is in the best interest of business to identify those risks and to implement and design a plan to deal with such a situation. It is imperative that if such a situation were to arise, that the company have action plans in place to deal with the risk involved in order minimizing risks and liability to the company. I have developed a plan for Alumina which will outline the action plan and forecast future company needs.
    The business simulation deals with a company called Alumina.   Alumina is a company that was cited five years ago for discharging effluents with higher than permitted concentrations of PAH. (Jennings, 2006) The company complied with regulations and cleaned up the source and has had no further incidents of discharge.   Kelly Bates is the mother of a young child who has developed leukemia.   The mother is convinced that the PAH released by Alumina into the water is the cause of her daughter’s leukemia.   She has filed suit using the one citation five years ago as her basis for suit.
    The following is a list of regulatory risks and a plan for prevention, detection, and the measures to be taken to minimize the risks.
    Risks of Tort Liability
    1. The risk of tort liability involving non-compliance of regulations:
      a. Five years ago, Alumina was cited for having higher than accepted rates of PAH.   This was an environmental regulation that was broken by Alumina.
      b. Alumina should be aware of the known risks that may affect the work place as well as the consumer and the environment.
      c. Alumina should conduct testing of discharge from its manufacturing plants on a schedule that is to be set using the knowledge of company standards.   This will help to...