LP Gas, March 2010
Lets Talk Continued from page 23 those items between inspections can educate fi eld staff about an inspectors hot button issues and help the company avoid a bad inspection If code violations are found by an inspector and not promptly resolved a written notice to abate will follow Typically by the time a notice of violation is issued the amount of the fi ne will have already compounded not from the date the citation was written but rather from the fi rst inspection and multiplied by length of time out of compliance Each day of noncompliance is a separate violation Failure to correct a problem and document it before the next inspection can result in thousands of dollars in fi nes that often could have been avoided Repeated incidents of noncompliance are the primary factor for heftier fi nes and they can create evidence that plaintiffs will claim equates to a companys haphazard safety or poor training Failing to promptly report an incident involving a fi re or explosion where signifi cant property damage or injury has occurred is a mistake that will create tension with the agency investigating the incident and it will be discovered in subsequent litigation However while cooperation with the agency is important it also presents that danger of creating bad evidence After an incident it is not advisable to provide testimony admissions and evidence without representation and preparation by counsel even if the investigative agency has no authority to issue a fi ne If a citation is issued marketers should get advice about their right to challenge Often agencies will dispose of a challenged citation for less than the amount of the original fi ne The settlement process provides the opportunity to avoid erroneous bad evidence such as an admission of a safety violation where only a technical violation has occurred Not every challenge requires an administrative hearing An attorney who routinely handles these matters will develop a rapport with the agency that will streamline the process and protect the clients interests Walking into a courtroom as a corporate defendant carries a heavier burden than defending the companys conduct in one case The whole company is on trial Plaintiffs attorneys will look for any piece of evidence to paint a picture for the judge and jury of a big bad profi t driven unsafe corporation By properly handling regulatory citations marketers can avoid leaving plaintiffs a trail of breadcrumbs to high dollar verdicts LPG Charlene Wright is an energy and pipeline attorney for Lathrop Gage LLP E mail her at cwright@ lathropgage com 24 LPGas March 2010 www LPGasmagazine com
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