Recognizing and Minimizing Tort and Regulatory Risk

Recognizing and Minimizing Tort and Regulatory Risk
University of Phoenix
May 31, 2010

Alumina has diversified interests in automotive components, bauxite mining, alumina refining and smelting (University of Phoenix, 2010). With a generally overall good compliance record for applicable environmental regulations, Alumina has found itself amid allegations of releasing contaminates into Lake Dira (University of Phoenix, 2010). Alumina must now create a strategic plan to mitigate fiscal and environmental damages, preserve their public image while abiding by all pertinent environmental statues (University of Phoenix, 2010).

Key Facts
      Alumina operates in eight countries with 70% of its $4 billion revenue earned in the United States (University of Phoenix, 2010). Falling under the jurisdiction of the EPA’s region 6, Alumina was found to be in violation of environmental discharge norms during a routine EPA compliance evaluation inspection (University of Phoenix, 2010). This inspection revealed that the PAH emissions were above acceptable limits. Alumina responded with prompt compliance (University of Phoenix, 2010). Aside from this one incident, which occurred five years ago, Alumina has a record of good overall compliance (University of Phoenix, 2010).
      Local resident Kelly Bates alleges that Alumina has caused leukemia in her ten year old daughter through contaminating Lake Dira. She claims that her daughter’s disease coincides with the onset of Alumina’s EPA violation which occurred five years ago (University of Phoenix, 2010).   Bates further seeks the release of the full environmental report of the five year old EPA violation through use of the Freedom of Information Act (FOIA).
      These allegations lead to Alumina seeking legal consult for the claims of negligence through on-going contamination of Lake Dira, violation of EPA statues, Freedom of Information Act exemptions, liability for personal injury and liability for pollutants in the lake...