Recognizing and Minimizing Tort and Regulatory Risk

Recognizing and Minimizing Tort and Regulatory Risk
Seto Zabor
Business   Law

Alumnia is a US based company that produces aluminum. Alumnia falls under the jurisdiction of region 6 of the EPA. Recently Alumnia has encountered certain legal issues involving a potential lawsuit by a local resident, Kelly Bates, whose child has fallen sick. Alumnia’s management must identify torts and risks and find ways to minimize those risks.

There are many tort liabilities that companies must identify and manage through preventive, detective, and corrective measures. The torts can be divided into three main categories: intentional torts, negligence, and strict tort liability. From the simulation I have identified Alumnia to be at risk of negligence, strict liability, Freedom of Information Act, Invasion of Privacy, and Defamation.
For a company like Alumina, there are business risks that can cause many legal issues. For example, compliance with the EPA standards is crucial. Alumina failed to meet certain EPA standards regarding their PAH concentration level. Although there were no immediate issues, other than correcting the concentration levels, Alumnia had future risk involved. To prevent this from happening in the future Alumnia’s management needs to create a more effective testing plan. Once a quarter Alumnia should have an independent surveillance team evaluate the PAH concentration level and provide a report to management. Alumnia’s management should take reports seriously and act accordingly to the results. I believe with the independent surveillance team and a swift action plan by Alumnia, they can avoid future issues and continue to meet EPA standards. Another offense can cause potential suit for negligence.  

Alumnia could be held responsible and liable for causing damages to the environment in the future. To promote its contributions to preserve the environment, Alumnia’s management should create a PR program to bring further awareness to the...