Regulatory Risk Plan

Recognizing and Minimizing Tort and Regulatory Risk Plan
Brittny Iman Gill
University of Phoenix
Organizational Leardership
LAW 531
Mark A. Addington
June 10, 2010

Recognizing and Minimizing Tort and Regulatory Risk Plan
This week in LAW 531 the class learned about intentional torts and negligence. According to the textbook a “tort” is basically a legal wrongdoing in which one party or a party’s property is damaged and another party is at fault. If a court finds the damaging party at fault then they are required at times to pay punitive damages to the injured party. Some common torts are: disparagement or trade libel, intentional misrepresentation, malicious prosecution, and negligence.
As part of our assignment for this week the class participated in a simulation for the fictional company Alumina Incorporated. In the simulation Alumina Incorporated was being accused of contaminating the waters of Lake Dira. This contamination of the water allegedly led to the illness of Kathy Bates, a local resident’s daughter. Although Alumina has had a clean tract record, there was one “blemish” on their record five years prior.
Five years ago, Alumina was found to be in violation of environmental discharge norms by the EPA. The EPA ordered Alumina to clean up, and Alumina immediately complied. An environmental audit was conducted and the problem was reported as corrected. Kathy Bates claim states that her daughter’s illness can be back to that incident. She goes on to claim that Alumina Incorporated has been contaminating the water for years.
Kathy Bates’ claim according to our reading is that Alumina has committed a breach of duty and that their negligence has caused injury to her daughter. In our reading Alumina had a duty of care to make sure that their discharge level was below the norms allowed by the EPA. If Alumina was found to be in continuous violation for the last five years then Kathy Bates’ claim would have merit.
For a company such as Alumina to...