Background

The offence of corporate manslaughter (the Offence) is committed when an organisation commits a gross breach of its duty which causes the death of an individual. A key part of the Offence is that the action or inaction of the senior management of the organisation contributed to the breach that caused the death.

The Sentencing Guidelines require fines for convictions of the Offence to be punitive and sufficient to have an impact on the defendant. The Guidelines recommend that the appropriate fine for the Offence will "seldom be less than £500,000 and may be measured in millions of pounds."

Companies convicted of the Offence can also be required to publicise various aspects of the conviction, including the particulars of the offence and the amount of any fine. The object of publicity orders is to act as "deterrence and punishment" and orders should ordinarily be imposed on offending companies. The Sentencing Guidelines recommend that publicity orders contain a provision to ensure that the offending company's shareholders know of the conviction. Consideration will also be given as to whether a statement on the company's website is required and, if publication in a newspaper is ordered, the newspaper, form of announcement and number of insertions should be specified by the court.

Cotswold Geotechnical Holdings Limited (Cotswold Geotech)

In May 2009 Cotswold Geotech was the first company ever to be charged with corporate manslaughter in connection with the death of an employee, Alexander Wright, on a building site in September 2008. Alexander Wright, a junior employee, died whilst taking soil samples as part of a site survey when the sides of a pit collapsed and killed him. Paul Eaton, a director of Cotswold Geotech was also charged at the time with gross negligence manslaughter under the Heath & Safety at Work Act 1974 but in October 2010 Bristol Crown Court stayed those charges due to his ill-health.

On 15 February 2011 Cotswold Geotech was found guilty of the Offence. The prosecution's case was that Mr Wright was working in a dangerous trench and Cotswold Geotech had failed to take all reasonably practicable steps to protect him. In convicting the company, the jury found that the company's system of work in digging trial pits was wholly and unnecessarily dangerous. The company had ignored well-recognised industry guidance in relation to the depth of excavations and work in unsupported trial pits.

On 17 February 2011 Winchester Crown Court fined Cotswold Geotech £385,000 payable over 10 years. The judge explained that the fine marked the gravity of the Offence but because of the size of the company a larger fine would cause it to be liquidated. No publicity order was made in this instance.

Comment

In 2009 commentators expected this case to be the first of many prosecutions. The construction and engineering sectors are particularly vulnerable, accounting for a significant number of work place deaths each year. This case is the only prosecution to date but it is reported that the Crown Prosecution Service is currently considering a number of other files of evidence in relation to further possible prosecutions for the Offence.

It is important for companies to (i) continuously review their safety management systems to consider whether improvements can be made; (ii) maintain a culture whereby everyone takes responsibility for improving health and safety; and (iii) ensure that health and safety leadership within the company meets the appropriate standards.

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