Recognizing and Minimizing Tort and Regulatory Risk

Recognizing and Minimizing Tort and Regulatory Risk

　
One of the most important things is for a company and/or an organization to identify and minimize tort liability and regulatory risk through preventive, detective and corrective measures. I will clearly identify how the simulation involving Alumina, Inc. was able to identify and manage these liabilities and risks with the proper management and preventative measures. To reduce the exposure to tort liability will be a major undertaking in operating a successful company or organization. There are three different types of tort liability: intentional torts, negligence and strict tort liability. Intentional torts are actions that happen then parties commit intentional acts. Negligence is when the actions of one party do not live up the minimum standards. Strict tort liability is absolute total liability for conduct with few, if any, defenses available. All three of these torts were visible in the simulation.
The intentional tort was demonstrated through that of defamation and slander by a local resident, Kelly Bates. Bates knew that Alumina, Inc. had a previous legal encounter five years ago and went to a reporter in order to notify the public of, what she believed was intentional, the actions of Alumina, Inc. continuing to release toxins and pollutants into the environment. The media enjoys a qualified privilege, the freedom to publish information, accurate or not, as long as it is not published with malice or disregard to its truth. She believed that Alumina was negligent in maintaining the acceptable PAH levels set forth by the Environmental Protection Agency and this was the contributing factor to her daughter’s leukemia, which would be an example of strict tort liability as well as causations. The negligent actions of Alumina, Inc that Kelly Bates is indicating can lead to a negative impact with the public.


There were other regulatory risks present in the simulation. Alumina, Inc. considered...