New York University

Intercep: International Center for Enterprise Preparedness

The Business Case for Preparedness

Lowering Litigator Costs

May 23, 2008 11:29 PM

Source: "The Legal Obligation for Corporate Preparedness", Bill Raisch, M.B.A. - Director & Matt Statler, Ph.D. - Associate Director New York University International Center for Enterprise Preparedness, Denis Binder, S.J.D., Professor of Law, Chapman University, New York University International Center for Enterprise Preparedness, October 16, 2006
Link: http://www.nyu.edu/intercep/Legal%20Case%20for%20Preparedness%2016%20oct%2006.pdf

Key Points:

* "Corporations are vulnerable to significant legal liability if they do not undertake emergency preparedness efforts. This liability can result from several sources including common law negligence, specific legislation/regulations and contractual obligations."
* The corporation faces a diversity of risks in its day-to-day operations: Whether the source is natural or human, the number of ways an accident can occur, a facility fail, or system malfunction is probably infinite."
* Litigation Can Drain Financial and Executive Resources: Unlike generations past, America had become a much more litigious society. The aftermath of any major disaster, such as Hurricane Katrina, 9/11, or the Loma Prieta and Northridge earthquakes in California, will include extensive litigation, both over issues of liability and insurance coverage. The costs of litigation and diversion of executive resources away from management can be enormous."