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In: Operations Management

IRAC Torts Bauer Insulation Co (BIC) was a subcontractor on an expansion project at the Dixon-Goetz...

IRAC Torts

Bauer Insulation Co (BIC) was a subcontractor on an expansion project at the Dixon-Goetz manufacturing plant in Lowville, New York which is a remote part of upstate New York approximately 40 miles from the nearest population centers.  Given the remoteness of the work site, BIC provided $30 per day in subsistence pay to each of its employees to defer part of the cost of a motel room or apartment in the nearest towns.  BIC did not require its employees to spend the money on lodging.  The employees were free to spend it or not spend it as they saw fit.  In fact the President of BIC, Zachary Bauer, would tell his employees, “if I were you, I’d pocket the money and commute!  It isn’t taxable income, its like free money!”

James LePage, a BIC employee was assigned to work on the expansion project in Lowville and he received the $30 per day subsistence pay from BIC but he elected to make the commute to the plant from his home in Rochester, NY which was 120 miles from the work site.  james, a resourceful young man, convinced a few other co-workers along the route to carpool to save additional money.  The parties would share the driving responsibilities.  The work schedule was Monday through Friday 7am to 5:30pm with a half hour for lunch and few if any breaks.  In addition to his employment with BIC, James also worked at the local Dick’s sporting goods store a second job at night as a stock clerk.

James completed his regular shift at the plant on a Tuesday and returned to Rochester at 8:30pm.  He then worked his second job before going to bed around midnight.  James then rose at 4:00am on Wednesday to get his vehicle and collect his co-workers for the daily commute to the plant, where he worked his normal shift.  The car pool with James driving left the plant around 6:00pm.  Shortly thereafter, James fell asleep at the wheel.  His vehicle crossed the centerline of the highway and collided head-on with a vehicle in which Matt Krengel was the passenger.  Matt expired in the accident and his widow, Claire McMahon, acting in her own right and as a personal representative of her late husband’s estate, filed a negligence-based wrongful death action against BIC in a New York State Court.

The lawsuit filed by McMahon claimed that BIC owed a duty of care to the other travelers on the highway to prevent injury caused by employees who had become exhausted after being required to commute long distances and work long hours and were even encouraged to do so with the $30 per day stipend.  She contended in her complaint that BIC breached its duty by “failing to take precautionary measures to prevent employees from becoming so exhausted that they pose a threat of harm to the traveling public and failing to provide alternative transportation to its exhausted employees or in the alternative, failing to provide living quarters to its employees within a reasonable from the plant site.

Discuss the legal theory put forth by Mrs. McMahon based on the various theories of negligence discussed in class.  Using the IRAC format conclude on the likelihood of success of this lawsuit.

Solutions

Expert Solution

Ans :

The IRAC methodology represents the following concepts of a legal problem:

  1. I: The issue or legal matter at hand.
  2. R: The rule or expected legal outcome.
  3. A: The analysis or explanation of the relevant laws and case law. ...
  4. C: The conclusion or summary of your legal analysis.

Facts [Provide summary of key facts.] :

James LePage, work for Bauer Insulation Co (BIC) a subcontractor on an expansion project at the Dixon-Goetz manufacturing plant in Lowville, New York which is a remote part of upstate New York approximately 40 miles from the nearest population centers.  

James LePage, a was assigned to work on the expansion project in Lowville and he received the $30 per day subsistence pay from BIC but he elected to make the commute to the plant from his home in Rochester, NY which was 120 miles from the work site. James, a resourceful young man, convinced a few other co-workers along the route to carpool to save additional money. The parties would share the driving responsibilities.  

In addition to his employment with BIC, James also worked at the local Dick’s sporting goods store a second job at night as a stock clerk which fetched him a few more dollars. James completed his regular shift at the plant on a Tuesday and returned to Rochester at 8:30pm.  On Tuesday he then worked his second job before going to bed around midnight.  

James then rose at 4:00am on Wednesday to get his vehicle and collect his co-workers for the daily commute to the plant, where he worked his normal shift. The car pool with James driving left the plant around 6:00pm.  Shortly thereafter, James fell asleep at the wheel.  His vehicle crossed the centerline of the highway and collided head-on with a vehicle in which Matt Krengel was the passenger.

Matt expired in the accident and his widow, Claire McMahon, acting in her own right

Issue(s) Presented

Under the generic state law James is guilty of falling asleep at the wheel. As a result his vehicle crossed the centerline of the highway and collided head-on with a vehicle in which Matt Krengel the passenger met with the accident and passed away.

Rule

Under Public Act (x:x) it is illegal for any subcontractor to have his employees to commute long distances after working long hours.

Under Public Act (y:y ) it states to provide alternative transportation to its exhausted employees or in the alternative, to provide living quarters to its employees within a reasonable from the plant site.

Analysis[Apply the law to the facts.]

The lawsuit filed by McMahon claimed that Bauer Insulation Co (BIC) a subcontractor owed a duty of care to the other travelers on the highway to prevent injury caused by employees who had become exhausted after being required to commute long distances and work long hours and given just $30 per day stipend.  

Conclusion [State the outcome of applying the law to the facts.]

Bauer Insulation Co (BIC) a subcontractor is not justified for failing to take precautionary measures to prevent employees from becoming so exhausted that they pose a threat of harm to the traveling public. The Bauer Insulation Co (BIC) a subcontractor will be found guilt and have to substantiate and responsible for Matt Krengel accidental death.


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