Business Finance Homework Help

Case:

WOD Chemical Company operates a plant on the Russian River, outside of Geyserville, CA. The plant produces a sulfur compound used on wine grapes. This plant has been in operation for about 25 years. On July 5th, a fire (caused by overheating machinery using a self-made insulating devise) in the plant caused an explosion of one of its sulfur tanks resulting in massive dumping of sulfur into the nearby Russian River. In August local wine producers noticed their wine grape vines were suffering, and grapes were shriveling and dying. Local River analysis showed abnormally high levels of sulfur content and it was speculated that the sulfur either came. directly from the fire based explosion, or there was some other leak at WOD. (Some claim the plant has been dumping Sulfur waste into the river for years although the river is regularly inspected by State Agencies) .The California Health Department and other government agencies in response to the recent sulfur levels, posted notices along all public access points warning the public of these sulfur levels and potential health risks from direct consumption of river water. Trifork Winery has filed suit against WOD for monetary damages.

Respond:

ANALYSIS: The WOD Chemical Company is a company who operates on a plant on the Russian River that is outside of Geyserville, CA. This plant produces a sulfur compound used on wine grapes and has been in business for 25 years. Before operating this plant it must pass all California State Health and Safety Operation inspections which it did. Next, on July 5th, a fire happen because of the plant. It was caused by overheating machinery using a self made insulating device in the plant that lead to an explosion from a sulfur tank. The effect of this fire was a massive dumping of sulfur into the Russian River. A month later in August, local wine produces begin noticing their wine grape vines were dying and the local river analysis showed it was high levels of sulfur. So the speculation was that the that the sulfur came from the fire explosion of the plant or there was some unknown leak at WOD. Some people claim before the explosion happened, the plant has been dumping Sulfur waste into the river for years even though the river is on regular basis is inspected by state agencies. Finally the response from the California Health Department and other Government agencies in the recent sulfur levels, they put notices among all public accesses points telling the people of the high sulfur levels and intentional health risks of drinking or using the water. So Trifork Winery has filed a suit against WOD for Monetary damages.

Due to the fact an explosion happened on WOD Chemical Company’s watch and led damages of people or property they can meet the requirements of a Tort of Negligence which is someone suffers injury because of another failure to live up to a required duty of care. Even though this explosion is unintentionally they may have failed their duty of care towards the people and the environment with damages that have been caused due to their plant exploding.

ISSUE: Did WOD Chemical Company fail to live up to their duty of care creating a Tort of Negligence with the explosion of their plant leading to damages of local wine producers wine grape vines?

CONCLUSION: According to the Tort of Negligence, The WOD Chemical Company did fail to live up to their duty of care due to the fact their fire explosion didn’t just damage local wine producers wine grapes, but also putting people at risk with the dumping of sulfur in the Russian River.