Tort and Regulatory Risk Plan

Tisha davis

Recognizing and Minimizing Tort and Regulatory Risk Plan

October 3, 2010


      Alumina, Inc. is an aluminum maker based in the USA and several other countries.   Alumina is being accused of illegally dumping waste into Lake Dira and causing an environmental damage approximately five years ago.   The EPA required Alumina to comply with an environmental clean-up which was considered “corrected” at time of the next environmental audit.   Despite the efforts of Alumina to correct the situation they are receiving negative press and resident, Kelly Bates, is accusing Alumina of negligence for her 10-year old daughter’s leukemia.

Recognizing and Minimizing Tort and Regulatory Risk

      To first identify common torts and regulatory risks in a company, the company must have knowledge in federal and state laws.   Appointing a legal team or an individual council to maintain and regulate current changes in the laws will be a corrective measure and benefit to the company.   This will resolve any form of non-compliant actions made by the company and prevent future failure to comply with state and federal laws.

      A tort is defined as a French word for “wrong” (Cheeseman, 2010, chapter 5).   Under tort law, an injured party can bring a civil lawsuit to seek compensation for a wrong done to the party or to the party’s property (Chesseman, 2010, Chapter 5).   Alumina, Inc. had several torts and risks that became apparent through the simulation and reading of the material.   The tort that is at hand is negligence.   Negligence is the failure to use reasonable care and the doing of something which a reasonably prudent person would not do, or the failure to do something which a reasonably prudent person would do under like circumstances (

      The disposal of effluents into Lake Dira five years ago is the action in question.   Since the claim is rooted in prior poor performance by the company, public perception will be a...