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13 December 2007
Issue: 7300 / Categories: Legal News , Health & safety , Professional negligence
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Corporate manslaughter fines could force firms out

News

Plans to fine first-time offenders up to 10% of their annual turnover for corporate manslaughter offences could force companies to leave the UK and move their headquarters elsewhere, if enacted, lawyers say.
The Sentencing Advisory Panel has drawn up proposals—currently out for consultation—which would see fines of 2.5%–10% of average annual turnover imposed for an offence of corporate manslaughter. When sentencing for an offence under the Health and Safety at Work etc Act 1974 involving death, meanwhile, the fine range would be 1%–7.5% of average annual turnover.

Gerard Forlin, barrister at 2-3 Gray’s Inn Square, says: “This is of fundamental importance to organisations operating in the UK and some may reflect on continuing to have their major headquarters here.”
He says the proposed fines—which would be in line for those imposed for competition offences—cannot rely on a deterrent effect since “some people working in very dangerous environments feel they cannot do much more”.
Forlin believes this could be the final straw which, on top of high taxes, terrorist threats, high workforce costs and more, forces companies to move their UK bases.

However, Jeff Zindani, managing director of Forum Law, argues that the fine range is unlikely to have much of a deterrent effect on companies but “demonstrates yet again the weakness of this legislation”.

MOVERS & SHAKERS

Hugh James—Jonathan Askin

Hugh James—Jonathan Askin

London corporate and commercial team announces partner appointment

Michelman Robinson—Daniel Burbeary

Michelman Robinson—Daniel Burbeary

Firm names partner as London office managing partner

Kingsley Napley—Jonathan Grimes

Kingsley Napley—Jonathan Grimes

Firm appoints new head of criminal litigation team

NEWS
Personal injury lawyers have welcomed a government U-turn on a ‘substantial prejudice’ defence that risked enabling defendants in child sexual abuse civil cases to have proceedings against them dropped
Children can claim for ‘lost years’ damages in personal injury cases, the Supreme Court has held in a landmark judgment
The cab-rank rule remains a bulwark of the rule of law, yet lawyers are increasingly judged by their clients’ causes. Writing in NLJ this week, Ian McDougall, president of the LexisNexis Rule of Law Foundation, warns that conflating representation with endorsement is a ‘clear and present danger’
Holiday lets may promise easy returns, but restrictive covenants can swiftly scupper plans. Writing in NLJ this week, Andrew Francis of Serle Court recounts how covenants limiting use to a ‘private dwelling house’ or ‘private residence’ have repeatedly defeated short-term letting schemes
Artificial intelligence (AI) is already embedded in the civil courts, but regulation lags behind practice. Writing in NLJ this week, Ben Roe of Baker McKenzie charts a landscape where AI assists with transcription, case management and document handling, yet raises acute concerns over evidence, advocacy and even judgment-writing
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