201108.03
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Tokyo Agrees Multi Trillion Yen Compensation Package

in Compensation Claims, Industrial Accidents

Japan´s parliament has approved a plan to help the victims of the Tsunami which struck the north-east coast of the country in March, destabilising the Fukushima Daiichi power station and forcing 80,000 people from their homes.

The plan will create a fund to pay damages to the victims without compromising the future of the electricity producing company responsible for the Fukushima nuclear reactor – Tepco.

Tepco reported losses of $15 billion earlier this year, and faces a weight of compensation claims that would force the company into bankruptcy – effectively leaving the country´s capital without power.

The Japanese government have budgeted for a 2 trillion yen ($26 billion) initial contribution to the fund, with further payments being made by other nuclear power operators and by the restructuring of Tepco.

Once all the claims have been assessed, the total amount of compensation is anticipated to exceed $100 billion on top of the huge amount of money already allocated to rebuild areas devastated by the tsunami and the earthquake that caused it.

201105.31
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Man to Receive 1.6 Million Dollars for Leg Lost in Grain Bin

in Farm Accidents, Farm Injury Claims, Industrial Accidents, Product Liability Claims, Product Liability Compensation, Workplace Injuries

A man, whose right leg was severed when it became trapped in a grain bin, has been awarded 1.6 million dollars in a product liability compensation claim against the designer of the grain bin – Ken Babcock Sales Inc. of Hiawatha, Kansas – and his employer – the Fredonia Cooperative Association of Fredonia, Kansas.

Sam Rollings (23), of Wilson County, Kansas, was sweeping out corn in the grain bin in January 2007, when he slipped and his right foot became entangled in the drag chain of the grain bin conveyor system. His leg was pulled into the machine and Sam suffered such severe injuries to his right foot and lower leg that surgeons could not save it.

In an action against the designer of the grain bin and his employer, it was claimed that there were no protective barriers or guard rails in the grain bin, and that no instructions or warnings were ever issued to employees working in the grain bin about the hazards which were present. Claiming personal injury due to product liability, the case was tried before District Court Judge David Rogers of the District Court of Wilson County, Kansas.

After seven hours of deliberation, the jury agreed with Sam that both Ken Babcock Sales and the Fredonia Cooperative Association were jointly responsible for his injuries, and awarded a total of 1.6 million dollars to cover a loss of earnings, past medical expenses and future medical care.

201006.30
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Contrasts Between Bhopal and Deepwater Horizon Highlight Differences in Corporate Ethics

in Compensation Claims, Industrial Accidents, Workplace Compensation Claims, Workplace Injuries, Wrongful Death Claims

The rapid response by BP in setting up a $20 billion compensation fund for the Deepwater Horizon oil spill has resulted in headlines in Indian newspapers alleging double standards.  The reality is a bit more complicated.

The 1983 Union Carbide India Limited pesticide plant disaster is bar far the worst industrial catastrophe in history, causing 2,259 deaths immediately and about 15,000 eventually.  The official estimates from the Indian government are 558,125 injuries, of which 38,478 were partial disablement and about 3,900 were severely and permanently disabled. There are also allegations that 390 tons of toxic chemicals have been abandoned at the plant that continue to leak and pollute the groundwater.

The disaster is also often cited as one of the worst examples of lack of corporate responsibility, employing tactics that reduce or delay financial liabilities.

Delay Court Cases
Some 26 years after the disaster, there are civil and criminal cases still pending in the United States District Court of Manhattan and the District Court of Bhopal.  In some cases, potential defendants are deceased and in many cases, the witnesses can not be expected to remember all the relevant details.

Divert Blame to Elsewhere
The current corporate owners, Dow Chemical Company, has an entire Web site dedicated to denying various allegations against it. The company position is that the disaster was the result of industrial sabotage.

Limit Liability
The company somehow managed to persuade the Indian government  in 1989 of freeing it of any liabilities by making a once-off payment that in no way covered the costs involved.

All of these actions are in stark contrast to the way in which BP is handling the Deepwater Horizon oil spill: rapid admission of guilt, unlimited resources to resolve the problem, and a massive prepayment of compensation.

The allegations of double standards are almost certainly not the result of different treatment for American victims versus Indian victims. They are primarily due to different companies having different corporate ethical standards.