The document summarizes an IRAC brief analyzing the legal issues surrounding Exide Technologies being forced to shut down their plant due to numerous toxic waste violations. It discusses how Exide failed to comply with EPA regulations and exposed residents to dangerous pollutants. As a result, Exide agreed to shut down, decontaminate the site, and pay to monitor residents' health. The brief serves as a lesson in adapting to change and respecting neighbors to avoid legal and health issues from noncompliance.
The document summarizes an IRAC brief analyzing the legal issues surrounding Exide Technologies being forced to shut down their plant due to numerous toxic waste violations. It discusses how Exide failed to comply with EPA regulations and exposed residents to dangerous pollutants. As a result, Exide agreed to shut down, decontaminate the site, and pay to monitor residents' health. The brief serves as a lesson in adapting to change and respecting neighbors to avoid legal and health issues from noncompliance.
The document summarizes an IRAC brief analyzing the legal issues surrounding Exide Technologies being forced to shut down their plant due to numerous toxic waste violations. It discusses how Exide failed to comply with EPA regulations and exposed residents to dangerous pollutants. As a result, Exide agreed to shut down, decontaminate the site, and pay to monitor residents' health. The brief serves as a lesson in adapting to change and respecting neighbors to avoid legal and health issues from noncompliance.
The document summarizes an IRAC brief analyzing the legal issues surrounding Exide Technologies being forced to shut down their plant due to numerous toxic waste violations. It discusses how Exide failed to comply with EPA regulations and exposed residents to dangerous pollutants. As a result, Exide agreed to shut down, decontaminate the site, and pay to monitor residents' health. The brief serves as a lesson in adapting to change and respecting neighbors to avoid legal and health issues from noncompliance.
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Running head: LEARNING TEAM REFLECTION: WEEK 5 IRAC BRIEF
Learning Team Reflection: Week 5 IRAC Brief
Dipesh Mistry, Hala Alnajjar, Chad Salcido LAW 531 September 7, 2015 Jonathan McGovern
LEARNING TEAM REFLECTION: WEEK 5 IRAC BRIEF
Learning Team Reflection: Week 5 IRAC Brief
Issue: Exide Technologies was forced to shut down their doors due to numerous violations and illegal practices involving toxic waste.
Rule: The EPA regulation translates the general mandate of RCRA (The Resource Conservation and Recovery Act) into a set of requirements for the agency and regulated community and protects endangering the public and the environment. Regulatory is an organizations adherence to laws, regulations, guidelines and specifications relevant to its business. Violations of regulatory compliance regulations often result in legal punishment, including federal fines (Rouse, n.d.).
Managing Legal Risk:
"It is important to gain a perspective of the wider, more inherent challenges to risk management on a global scale, through a clearly defined business risk and compliance strategy." (O'Connell, 2012). Methods for managing legal risk that may arise from regulatory compliance issues require a company to formulate procedures and implement practices to avoid the committing the same violations. According to Lee OConnell, a Senior Management Consultant within Eversheds Consulting, organizations need to have a wide understanding of the regulations governing its practices, be proactive in identifying discrepancies and taking action to rectify and mitigate future occurrences (O'Connell, 2012). Company legal advisors are now becoming more
LEARNING TEAM REFLECTION: WEEK 5 IRAC BRIEF
actively involved in the risk assessment of a company by preventing issues leading to
compliance violation.
In the case of Exide Technologies, state regulating officials i.e. California Department of Toxic Substances Control (DTSC) identified and reported several violations throughout the years. Despite these violations, Exide Technologies paid the minimal fines and did not make changes to the way they stored their toxic waste.
Analysis: Exide Technologies are committed to comply with applicable legal requirements and other requirements related to environmental aspect. Due to the negative environmental impact at the Vernon plant, Exide agreed to shut down the plant as agreed upon to avoid any further criminal charges and fines. Exide was then ordered to decontaminate the site due to the high levels of lead and arsenic emissions.
Exide Technologies was not only mishandling their toxic waste, but they were not complying with all applicable governmental laws and regulations with the Environmental Protection Agency (EPA), South Coast Air Quality Management District and the Department of Toxic Substance Control. Exide also exposed Vernon residents to fatal levels of arsenic and other dangerous pollutants. The governing officials of the case are still uncertain of the long term effects to the Vernon residents who were exposed to the hazordous materials.
LEARNING TEAM REFLECTION: WEEK 5 IRAC BRIEF
If the United States Attorneys Office does agree that Exide Technologies is in compliance with their obligation, close the recycling facility and follow all instructions for postclosure, then Exide will agree to public admission or facts found regarding the facility. In turn the USAO will agree to not prosecute the company or any of their officers, directors or employees within a ten year period. This agreement was made to resolve the USAOs grand jury investigation on Exide Technologies and created a statute of limitations.
If the United States Attorneys Office determines that Exide has breached the agreement between said parties, the USAO will be allowed to open a criminal prosecution with thirty days notice after the discovery of the breached agreement. If any statement that is given by an employee of Exide contradicts the facts contained in the Statement of Admissions and Facts agreement, any contradictory information stated as fact would be a violation and breach the agreement between Exide and USAO, then Exide may avoid a breach of the agreement by releasing a public statement within 48 hours of the notification by the USAO regarding the incorrect information that was given.
Lastly, the accepted consequences made by the USAO and Exide, Exide has agreed to pay for the monitoring and testing of blood lead and arsenic levels to the surrounding local community for their health concerns.
Conclusion: Since the agreement has been made between the USAO and Exide Technologies in 2013, Exide has had to perform blood tests and soil tests for their surrounding area to monitor
LEARNING TEAM REFLECTION: WEEK 5 IRAC BRIEF
pollution. The penalties have increased with Exide having to pay for their non-compliance and the local community is now being monitored for any residual pollution that may accumulate in the future.
This case is a great example of why it's important to adapt to change and respect your neighbors. The residents of the City of Vernon were tired of being ignored because they raised issues of negligence by Exide. The residents ultimately spearheaded the campaign to shut down the plant and eventually won. If Exide Technologies continued down their path along with the enforcement of these penalities being non-existent, there could have been a major outbreak.
LEARNING TEAM REFLECTION: WEEK 5 IRAC BRIEF
References:
Barbosa, T. (2015, March 14). Exides troubled history: years of pollution violations but few penalties. Retrieved from latimes.com: http://graphics.latimes.com/exide-battery-plant/
O'Connell, L. (2012, April 30). 6 risk and compliance challenges for global organizations. Retrieved from http://www.insidecounsel.com/2012/04/30/6-risk-and-compliance-challengesfor-global-organi?page=2
Rouse, M. (n.d). Regulatory compliance definition.
Retrieved from http://searchcompliance.techtarget.com/definition/regulatory-compliance
