Law Alumina Inc Plan

“On March 24, 1989, the United States recorded its worst oil spill disaster. Exxon Valdez, an oil tanker on its way to California, struck a reef in Prince William Sound, releasing 11 million gallons of crude oil into the pristine blue waters off the southerner coast of Alaska (“Legal Environment,” 2010)”. The fishing industry and most of the coastline disappeared. Alumina Inc. failed to have a system of guidelines available to handle this type of crisis. The firm was given a large fine do to their negligence to meet the standard conduct established by the law. Five years ago the Environmental Protection Agency (EPA) Found Alumina in violation of environmental discharge after examining polycyclic aromatic hydrocarbons testing samples. This is also a violation of the Clean Water Act. “The objective of the Federal Water Pollution Control Act, commonly referred to as the Clean Water Act (CWA), is to restore and maintain the chemical, physical, and biological integrity of the nation's waters by preventing point and nonpoint pollution sources, providing assistance to publicly owned treatment works for the improvement of waste water treatment, and maintaining the integrity of wetlands (Agriculture, 2010). The Environmental Protection Agency ordered the firm to clean up the water. The new Environmental Audit Report show that the firm had had corrected the problem. However Kelly Bates a local resident is accusing Alumina of repeatedly contaminating the water. Kelly Bates is a single mother of a ten-year-old little girl whom has been diagnose with leukemia. Bates believes the contaminated water is the cause of her daughter’s leukemia from Alumina Inc. EPA violation from five years ago.

Alumina Inc. plans to resolve the claim without going before a judge by using two methods of alternative dispute resolution mediation and arbitration. During mediation the neutral third party the mediator assists with the negotiation to reach a settlement. “In arbitration, the...