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Recognizing and Minimizing Tort and Regulatory Risk Paper - Essay Example

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It owns 40% stakes in Alcoa World Alumina & Chemicals (AWAC), which is primarily engaged in mining of bauxite, aluminium smelting and extraction of…
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Recognizing and Minimizing Tort and Regulatory Risk Paper
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Thus large aspects of toxic torts, negligence torts, application of strict liability rules may form a substantial part of its legal milieu and needs to be addressed to, from time to time. The need to abide by environmental protection norms and guidelines and to evolve a suitable mechanism to tackle ostensible environmental violations, including water pollution management caused by discharge of effluents into the lake is pre-eminent. It is seen that tort occurs outside the ambit of contract. In other words, it is not necessary that contractual liability needs to be present in order to file a suit for tort damages.

Thus if a person is walking down the road and a slab of concrete falls on his leg, he could bring a suit for Tort of negligence on the perpetrator. There need be no contractual obligation between the parties, unlike Law of Contract, to enforce claim for damages on the wrongful parties. Besides seeking access for compensation and penal damages for past environmentally harmful conduct, plaintiffs may seek injunctive relief to prevent potential health detriments. Manufacturing plants that, inter alia, empty “chemicals that poison the water” which may be used for human satiation, create risks of health hazards.

(Tort Law: Damages, 2008). Thus under tort laws, if the Courts are of the opinion that the harm, or nuisance value outweighs its benefits, it may order restraint or prevention of such acts, by such plants on the environment. In the past the Company had to face legal action for not following safe toxic chemicals and effluents management systems.(Business regulation, 2008). Again, it has also been seen that Alumina Inc had been found liable for unsafe environmental and effluent treatment practices when a routine water sampling showed lower levels of less than acceptable standard 5 milligrams/liter of polycyclic aromatic hydrocarbons (PHA).

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