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The Key Elements of Successful Erm

Essay by   •  November 26, 2012  •  Case Study  •  807 Words (4 Pages)  •  1,414 Views

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The BP Oil Spill, also known as the Deepwater Horizon Oil Spill happened in the Gulf of Mexico in 2010. The explosion of the deepwater oil rig on April 20, 2010 left 13 people dead, and 17 people injured. The spill released five million barrels of oil, before it was capped off on July 15, 2010. The spill caused considerable damage to marine and wildlife habitats, fishing, and tourisms industries. This oil spill is considered to be one of the worst spills in history. Alumina is an aluminum company based in the United States. And EPA testing was done and Alumina was found to have concentrated levels of PAH in the waters of Lake Dira. Also a young mother, Kelly Bates claims that the contamination of Lake Dira is responsible for her 10- year- old daughter developing Leukemia. In this paper, legal issues and principles involving the BP spill, and the Alumina simulation will be examined. Also a comparison and contrast between the BP spill and the Alumina simulation will be discussed. The last objective to be discussed is what legal principles will apply and how management should resolve the issues from a management and legal perspective.

Several legal issues are involved stemming from the BP oil spill. One legal issue is the loss of businesses, and the loss of individual's income. Many workers and businesses in the Gulf region filed lawsuits claiming loss of profits and income from the oil spill. The plaintiff's, which are the employees and companies of commercial fishing, shrimp and oyster businesses, charter boat operators, tourist attractions, hotels, and rental property owners. Another legal issue is environmental damages. The Justice Department can file civil and criminal lawsuits against BP. BP were in violation of the Pollution Act of 1990, and the Endangered Species Act. Health risks also are a legal concern from the oil spill. Many residents whom help clean up the oil spill were subjected to the presence of oil on their coastal properties, and the toxic chemicals, which was used to clean-up the oil. A legal issue, which BP also can be held accountable for is the wrongful death and injury caused by the Deepwater Horizon incident. BP can be sued for negligence by the workers who were injured from the spill.

Alumina legal issues involve a potential lawsuit, which can be filed by Kelly Bates stating that harmful carcinogens in Lake Dira are responsible for her daughter medical condition. Another legal issue is how much information should be disclosed by the company, which may have adverse effects on the company's revenue. Alumina also can consider filing a lawsuit claiming Defamation of Character, which may cause a loss of earnings for the company, shame and ridicule of the company, and the company may also suffer a damage of reputation.

British Petroleum's disastrous oil spill on April 20, 2010 devastated the livelihood of many Americans in Louisiana. However, the colossal oil spill had other victims



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