The long awaited outcome in the Cotswold Geotechnical (Holdings) Ltd case was delivered on Tuesday when members of the jury at Winchester Crown Court found the company guilty under the Corporate Manslaughter and Corporate Homicide Act 2007. The company had denied the charge of corporate manslaughter.
This was the first prosecution brought under the Act and now the first conviction. Under the Act, an organisation is guilty of corporate manslaughter if the way in which its activities are managed or organised causes a death and amounts to a gross breach of a duty of care to the person who died.
The company was found guilty of failing to ensure the safety of their employee Alex Wright, a geologist who tragically died on 5 September 2008, whilst investigating soil conditions in a deep trench of some 3.5 metres on a development plot when it collapsed.
The case against the company was that its systems had failed to take all reasonably practicable steps to protect Mr Wright from working in dangerous conditions.
There have been many delays with this case due to concerns regarding the managing director, Peter Eaton's health. He was originally charged with gross negligence manslaughter but a judge ruled that he is too unwell to stand trial.
Whilst Cotswold was a small company that employed only 8 people in 2008, Peter Eaton was in overall control and it was easier for the prosecution to establish the role of senior management.
The company returned to court yesterday afternoon to be sentenced and was fined £385,000.
The judge, Mr Justice Field, said the gross breach of the company's duty to Mr Wright was a "grave offence". He said the company, which was described in court as in a 'parlous financial state', could pay the money back over 10 years at a rate of £38,500 per annum.
He explained the fine marked the gravity of the offence and the deterrent effect it would have on companies to strongly adhere to health and safety guidance.
After the trial, Gloucestershire Constabulary said: "As a result of our investigation we found the company had a cavalier attitude towards health and safety. The way it taught and supervised junior engineers was inherently dangerous and the methods of working were outdated."
Practitioners have been awaiting this result to see how the courts would implement this new act and follow the sentencing guidelines. There is no limit on the fine that the court can impose and the court could also have made a Publicity Order, requiring the company to publish details of the offence and conviction, however given the high publicity of this case already that was not required.
This case serves as a stark reminder to companies and directors to ensure that risk assessments are carried out, complied with and updated.
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