First Corporate Manslaughter Case - Company Fined £385,000

Corporate Manslaughter History - On 17th February 2011, Cotswold Geotechnical (Holdings) Ltd (CGH) was fined £385,000 after being found guilty of corporate manslaughter by a jury at Winchester Crown Court. This is the first time that a company has been convicted of an offence under the Corporate Manslaughter and Corporate Homicide Act 2007.

The case was brought against CGH following the death of Alexander Wright, a 27-year old geologist. Mr Wright died while taking soil samples from the bottom of a trial pit at a building site. The prosecution alleged that Cotswold had failed to operate a safe system of work in allowing trial pits to be dug that were unnecessarily dangerous. In doing so, the company had ignored well-recognised industry guidance that prohibited entry into excavations more than 1.2 metres deep. Further, at the time of the accident Mr Wright had been left unsupervised on site.

What is perhaps most striking about this case is the size of the fine imposed. CGH is a small company. At the time of the accident, it only had eight employees. However, the level of fine reflected the Judge's view that the company had committed a "grave offence". Acknowledgjng the company's parlous financial state and accepting that a greater fine could force the company into insolvency, the Judge ordered that the fine could be paid over a period of ten years at £38,500 per annum

Only companies, partnerships and similar bodies can be guilty of an offence under the 2007 Act. However, individuals may be charged with other offences. Originally, a director of Cotswold, Peter Eaton, was charged with common law manslaughter. However, the case against him has been permanently stayed due to his ill-health.

It is quite difficult to gauge the significance of this case. The 2007 Act was designed to make it easier to prosecute larger organisations for manslaughter. CGH could probably have been successfully prosecuted under the common law. However, the case does reinforce the need for businesses to develop a health and safety culture and ensure that everyone in the organisation understands the importance of health and safety issues. Larger companies may want to note the level of the fine. A larger organisation would almost certainly face a much greater level of fine for a similar offence.

To find out more, please contact Caroline Wilton or Nick Crook.

Filed: 28/02/2011 11:26:02