header-logo header-logo

25 February 2011
Issue: 7454 / Categories: Legal News
printer mail-detail

Death knell for companies?

High fines anticipated for corporate manslaughter after first conviction

A company convicted of corporate manslaughter has been fi neda 116 per cent of its annual turnover. Cotswold Geotechnical Holdings Ltd (CGH) was fi ned £385,000 last week at Winchester Crown Court, after becoming the first to be convicted of the new off ence under the Corporate Manslaughter and Corporate Homicide Act 2007.

A geologist working for CGH died in 2008 when a trench he was working in collapsed. Th e company was found to have breached health and safety legislation and ignored industry guidance. The company director, Peter Eaton, was previously charged with gross negligence manslaughter and a health and safety off ence, but was ruled too unwell to stand trial.

Gerard Forlin QC, of 2-3 Gray’s Inn Square, who specialises in health and safety law, says: “This company had a turnover in 2008 of £333,000 and was fined 116% of that. It was given a relatively long time to pay—ten years with £38,500 due each year. “I think companies are going to sit up and listen, as fines potentially have to be paid within 28 days according to the Sentencing Guidelines Council (SGC) guidance. In the context of its turnover, this is a high fine. If a fi ne of 116% were made against an oil company, large supermarket chain, bank or manufacturer then you can imagine the impact.

“However, each case willturn on its own facts and on the company’s ability to pay. I don’t think the court was sending out any particular message with this. It must be recalled that the SGC guidance set out the principles in any event.

“However, this case may well put the wind in the sails of the CPS and lead now to more prosecutions of larger organisations for corporate manslaughter.”

 Berrymans Lace Mawer LLP partner, Helen Devery says: “Although the fine is less than the starting point of £500,000 recommended by the SGC it will no doubt have a dramatic impact on a company of this size, refl ecting the trend towards harsher penalties.”

For more on this story see www.healthandsafetyatwork.com

Issue: 7454 / Categories: Legal News
printer mail-details

MOVERS & SHAKERS

Weightmans—Jason Slatcher

Weightmans—Jason Slatcher

Weightmans appoint new Chief Technology Officer

Mishcon de Reya—trainees

Mishcon de Reya—trainees

Mishcon de Reya announces trainee retention rate of 86%

Sackers—Charlotte Adams & Fraser Sutton

Sackers—Charlotte Adams & Fraser Sutton

Sackers welcomes two new Graduate Solicitor Apprentices

NEWS
LexisNexis will mark the 80th anniversary of Shawcross and Beaumont on Air Law with a live podcast exploring the evolution of aviation law from the Chicago Convention to the challenges facing modern aerospace, taking place on Tuesday 29 September
Harmony Christian Ministries is the latest charity to benefit from a £500 donation from AlphaBiolabs via the company’s Giving Back initiative
Foreign judgment creditors have gained a route to recovery after the Supreme Court’s ruling in Drelle v Servis-Terminal
Surrogacy is growing in popularity, but parents-to-be face a complex legal framework
Winning a judgment may be only the beginning of an expensive enforcement battle, writes Professor Dominic Regan in this week's NLJ
back-to-top-scroll