Alpha Corp Owns a Large Plot of Land Called Blackacre

question 47

Essay

Alpha Corp owns a large plot of land called Blackacre.Except for one corner of that property, where Alpha's factory, offices, and warehouse are located, Blackacre is undeveloped.Omega Inc owns a piece of land that shares a common border with Blackacre.That border is located at the edge of an undeveloped section of Blackacre.Omega's property contains a number of buildings, including a manufacturing plant.That plant generates a considerable amount of waste.For the past 10 months, Omega has greatly reduced its waste disposal expenses by simply dumping its waste onto Blackacre, rather than transporting the waste to a proper dumpsite.Alpha objected to the waste from the outset and initially tried to resolve the issue through friendly negotiations.It eventually became clear, however, that Omega would not voluntarily stop dumping waste onto Blackacre.Alpha consequently sued Omega for trespass to land.The court agreed with the claim and imposed liability upon Omega.The judge is now required to decide which remedy or remedies Alpha is entitled to receive.In that respect, Alpha has shown three things.(i) It will cost $75 000 to remove Omega's waste from Blackacre.(ii) Omega will dump waste onto Blackacre again in the future unless there is something to prevent it from doing so.And (iii) Deliberate dumping of this sort has become a widespread problem because manufacturers, such as Omega, often believe that while the expense of properly disposing of waste material is much the same whether the work is done immediately or whether it is done only after a court has imposed liability, there is always a chance that the victim of a tort will not, for some reason, actually take the problem to court.Consequently, manufacturers often believe that there is little to lose, and potentially much to gain, by tortiously dumping waste on neighbouring properties.What remedies should be awarded against Omega on these facts?

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Definitions:

Net Income

The total earnings or profit of a company after all expenses and taxes have been deducted from revenue.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction, primarily in the United States.

Expense Recognition

The accounting principle that dictates the timing of reporting an expense in the financial statements, ensuring expenses are recorded when incurred.

Revenue Recognition

The accounting principle that dictates the conditions under which revenue is recognized and recorded, often requiring that revenue is earned and measurable.