In 1950, Leaky Chemical Company began manufacturing fireproofing materials at its site in NY. The manufacturing process used a lot of water and as part of the process, it used water from the nearby river to cool its machinery. At the conclusion of the process, used water was discharged into a sump called "The Lagoon", behind the building. In 1975, Leaky went out of business & the property was unused until 1980, when Vinyl Window Corporation bought the property and began manufacturing replacement windows. The manufacturing process resulted in leftover liquid vinyl, which was put in metal drums and stored outside-where they rusted and leaked into the Lagoon and elsewhere. After VWC moved its entire business to China in 1995, at VWC's request, the factory buildings were bulldozed by an outside company, (Ace Demolition Corporation) which also bulldozed the metal storage drums, not knowing what was in the drums. In 2000, a residential community was built adjacent to the old VWC property. In 2005, Carson Jones bought the flat, level factory property, intending to build a small strip mall to serve the nearby residents, and he did so. By 2010, the residents complained to local, state and federal environmental authorities that they were suffering rare cancers, skin lesions, neurological disorders and an unusually high rate of miscarriages and birth defects. Following a five year investigation, it was determined that the health issues could be as a result of multiple environmental contaminations from Leaky and from VWC. What are the legal remedies available to the injured parties? What laws would apply to this fact pattern? Who is responsible to the victims, and under what theory(ies) of law?

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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In 1950, Leaky Chemical Company began manufacturing fireproofing materials at its site in NY. The manufacturing process used a lot of water and as part of the process, it used water from the nearby river to cool its machinery. At the conclusion of the process, used water was discharged into a sump called "The Lagoon", behind the building. In 1975, Leaky went out of business & the property was unused until 1980, when Vinyl Window Corporation bought the property and began manufacturing replacement windows. The manufacturing process resulted in leftover liquid vinyl, which was put in metal drums and stored outside-where they rusted and leaked into the Lagoon and elsewhere.

After VWC moved its entire business to China in 1995, at VWC's request, the factory buildings were bulldozed by an outside company, (Ace Demolition Corporation) which also bulldozed the metal storage drums, not knowing what was in the drums. In 2000, a residential community was built adjacent to the old VWC property. In 2005, Carson Jones bought the flat, level factory property, intending to build a small strip mall to serve the nearby residents, and he did so. By 2010, the residents complained to local, state and federal environmental authorities that they were suffering rare cancers, skin lesions, neurological disorders and an unusually high rate of miscarriages and birth defects. Following a five year investigation, it was determined that the health issues could be as a result of multiple environmental contaminations from Leaky and from VWC.

What are the legal remedies available to the injured parties? What laws would apply to this fact pattern? Who is responsible to the victims, and under what theory(ies) of law?

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