Several months ago, Jones Company experienced a spill of hazardous materials into the White River from one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $405,000. The company contested the fine. In addition, an employee is seeking $180,000 damages related to the spill. Finally, a homeowner has sued the company for $260,000. Although the homeowner lives 30 miles downstream from the plan, he believes that the spill has reduced his home's resale value by $260,000.
Jones' legal counsel believes the following will happen in relationship to these incidents:
(a) It is probable that the EPA fine will stand.
(b) An out-of-court-settlement for $165,000 has recently been reached with the employee, with the final papers to be signed next week.
(c) Counsel believes that the homeowner's case is much weaker and will be decided in favor of Jones Company.
(d) Other litigation related to the spill is possible, but the damage amounts are uncertain.