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Updated Mar 11, 2011

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Company found guilty of corporate manslaughter

Cotswold Geotechnical (Holdings) has been fined £385,000 over the death of a junior geologist. The fine is the first of its kind under the Corporate Manslaughter and Corporate Homicide Act 2007.

The geologist died from asphyxia by being buried beneath several tonnes of mud after the sides of an excavated trench collapsed. He had been working alone in a 3.8m deep and unsupported pit.

The judge, Mr Justice Field, explained the fine reflected the gravity of the offence and that it should act as a deterrent to companies that fail to adhere to health and safety legislation. A sentencing guideline issued to judges last year by the Sentencing Council set a benchmark fine for corporate manslaughter of £500,000. However, courts were given leeway to reduce or increase the fine according to mitigating or aggravating circumstances and the convicted company's financial health. Cotswold Geotechnical, which was described in court as in a perilous financial state, can pay the money back over 10 years at a rate of £38,500 per annum.

The judge said the company was operating on a small scale and a larger fine would cause it to be liquidated, and four people presently employed would lose their jobs. Mr Justice Field added that the company was well aware of a rule dating back to 1981 which said that pits over 1.2m deep should be supported due to the danger of collapse, but ignored it. He said, "This approach to trial pitting was extremely irresponsible. It flew in the face of the rationale of the 1.2 metre rule." Defence lawyer, Richard Lissack QC, had argued that industry guidance, which says that workers should not enter unsupported excavations more than 1.2m deep, "gives best advice to a broad sector" rather than dictating a hard rule.

Paul Verrico, a partner specialising in health and safety law firm Eversheds said he expected the successful conviction would lead the Crown Prosecution Service to progress other corporate manslaughter cases.


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