Tort Liability

Every organization deals with tort liability and management in their day to day business practices.   The key to limiting a company’s risk and exposure to these is proper management and proper preventative measures.
The following paper will identify the tort liability and regulatory risk of Alumina and propose a business plan that will offer suggestions on how to manage these risks. It will go through the detection, prevention and reformative measures that will need to be taken.
The business simulation that the learning teams were asked to complete focuses on an organization called Alumina. Alumina is a company that has a previous liability that had been brought to their attention and rectified during an Environmental Protection Agency (EPA) survey five years prior. Alumina now has tort liability issues as a result of their previous infraction and now a current allegation of gross neglect. The risks outlined by the learning team as the most relevant were defamation, First Amendment and Freedom of Information Act.
Key Issues and Solutions
A very public allegation is made against the company in the in the local newspaper by a local resident after her 10 year old daughter was diagnosed with leukemia making claims that the company was contaminating the water source with carcinogenic effluents. Five years ago Alumina was found in violation of an EPA regulation. Alumina made all efforts to address the violation and rectify the problem and have for the past five years been in compliance with federal EPA regulations.
Since Alumina feels that they have been in compliance with federal EPA regulations they feel that these allegations are unfounded and are defamation of the company‘s name and reputation. Since this claim stems from their prior violation the concept of public perception will be what drives the resolution of this issue.
Liability on this issue could have been reduced had Alumina taken proactive steps after their first violation by informing the...