Facts in the Alumina case.
Alumina Inc. is a $4bn aluminum maker and it is situated on the fringe of Lake Dira in the State of Erenwon. Alumina has business interests in automotive components and manufacturing material, bauxite mining, alumina refining and alumina smelting. Five years ago, during a routine check by the EPA, Alumina was reported to be in violation of an environmental discharge regulation where excess PHA (Polycyclic Aromatic Hydrocarbons) were detected and found to be above the prescribed limit in waste coming from the plant. After the EPA ordered clean up was completed, the follow up report indicated that the violation had been “corrected”. (Univesity of Phoenix, 2009)
Five years later, Kelly Bates, a local resident, is alleging that the Alumina Corporation’s previous negligent conduct and violation of environmental laws is the proximate cause if her daughter’s leukemia. (Universty of Phoenix, 2009).
Identifying Regulatory Risks
The regulatory risks found in Alumina case are: Defamation, First Amendment and Freedom of Information Act.
Defamation: In order to understand this regulatory risk, it is important to mention that defamation is a type of tort of law within the intentional torts, defined as an untrue statement made by one party to another about a third party. The elements for defamation are as follows:
A statement about a person’s reputation, honesty, or integrity that is untrue
Publication
A statement that is directed to a particular person
Damages
In some cases, proof of malice
In Alumina case, all the above elements were met. Kelly Bates made a statement that was printed in the Erenwon, a local newspaper. In the article, they reported that Alumina Inc. violated the environmental laws 5 years ago; this violation was for the unlawful discharge of excess hazardous materials that have become the cause of her daughter’s leukemia. This statement was published at the local...