The case of Bates v. Alumina, Inc. summarized

The case is divided into three parts, to which the paper will later refer when discussing the Team Buddy recommendations to the CEO of Alumina, Inc.

1. In May, 2004, the Erehwon Reporter published a scathing article against Alumina, Inc., in which Kelly Bates charged that Alumina, Inc. had discharged polycyclic aromatic hydrocarbons (PAHs) into the waters of Lake Dira in violation of EPA standards, and therefore was responsible for her child contracting leukemia. Alumina, Inc. responded by ordering an internal audit, which concluded that it was not producing PAHs above the EPA standard levels.

2. Bates and the Erehwon Reporter then approached the EPA to obtain the environmental audit report that documented the Alumina, Inc. violation of the Clean Water Act five years ago. The EPA notified Alumina Inc. that disclosure of information under the Freedom of Information Act (FOIA) was being considered. Alumina, Inc. disclosed the environmental audit information to The Erehwon Reporter without releasing any confidential information.

3. Bates then threatened to file a million-dollar personal injury lawsuit against Alumina, Inc. to recover compensatory and punitive damages. Bates alleged that Alumina’s negligent conduct, evident in the “serious violation” of environmental laws five years ago, was the proximate cause of her daughter’s leukemia.

Through the mediation of a neutral third party, AAA, a confidential settlement provided Bates with reimbursement of her past medical expenses for the treatment of her daughter, and a lump sum for future medical treatments. In addition, Alumina, Inc. established a college education fund for Bates' daughter. In return, Bates signed a release of all claims and a strict confidentiality agreement.

Additional strategies recommended to the CEO of Alumina, Inc.

The following section takes a closer look at each of the three stages of the above case; summarizes the steps that Alumina, Inc. took at each stage, following the suggestions of Team Buddy; and expands the Team’s suggestions to include other innovative actions that Alumina, Inc. could take to solidify its position and the case and avoid future toxic tort litigation threats.

1. After reading the scathing article in The Erehwon Reporter, Team Buddy decided to ascertain that it was not violating EPA standards, and chose to perform an independent site analysis, which concluded that Alumina, Inc. was not releasing PAHs above the EPA standard of 5 milligrams per liter. This strategy quieted the paper and the bad press for Alumina, Inc.