Corporate Manslaughter

R v Cotswold Geotechnical (Holdings) Ltd [2001] ALL ER (D) 100 (May)

On 6th April 2008, the corporate manslaughter and corporate homicide Act 2007 came into force throughout the UK. 

The act provides for a means of accountability for very serious management failings across organisations and was created to work in conjunction with Civil law. The Act together with the Health and Safety (Offences) Act 2008 has increased the maximum penalties that can be imposed on those held accountable.  It now means that employers found guilty could face a prison sentence if death is found to be caused by management failure.

Whilst this is a step forward in that the law is now considerably wider  and punitive in this area, the act will only apply to deaths occurring on or after the 6 April 2008 and only in the very worst cases of corporate negligence where the Director of Public Prosecutions has consented to bringing the prosecution.   The act does not provide for claims against individuals themselves, nor does it allow claims against UK organisations where the death occurred on foreign soil. The process by which bereaved families can claim compensation remains the same and is not provided for under the new act, meaning that bereaved families will still have to apply through the civil courts.

Under the new Act, an organisation will be found guilty of committing an offence if the way in which it’s activities were managed or organised caused a persons death and amounted to a gross breach of a relevant duty of care owed by the organisation to the deceased.  A substantial element of that breach must be the way in which those activities were managed or organised by senior management and it must relate to the employers responsibilities as an employer. It’s root element must be a breach of duty of care under the law of negligence.

In the case of R v Cotswold Geotechnical (Holdings) Ltd [2001] ALL ER (D) 100 (May), Cotswold Geotechnical (Holdings) Ltd was the first company to be prosecuted under the  Corporate Manslaughter charge, for failing to ensure the safety of a geologist  who was collecting soil samples when a pit collapsed on him. The pit was part of a development site and should have been supported by timber structures to reduce the risk of collapse. The company was convicted and ordered to pay £385,000 over a 10 year period.

Initially also the Director of Cotswolds also faced prosecution for manslaughter and health and safety charges, but due to ill health the Crown Prosecution services dropped the charges and pursued solely against the company.  This case is a prime example of how the act allows for the joining of cases under The Health and Safety at Work Act 1974 so that convictions under both Acts can be brought at the same time. For example, collectively against senior management in the Crown Court, and against individuals in the Civil Court.

The effect of the new act and the decision in Cotswold Geotechnical (Holdings) Ltd means that companies will now need to be more realistic and transparent in their assessment procedures and more rigid with the implementation of their health and safety policies.  The new Act is likely to have a significant impact on organisations where jobs are carried out that bear considerable risk. Whilst the Act does not create new duties, with the offences continuing to be based on the civil law of negligence, it now enables the Courts to collectively look at the actions of senior management as a whole rather than just focusing on the actions of one individual in particular. Arguably, this new offence now makes it easier to sanction those who have failed their employees.

Review by Alexandra Cazabon of Hilary Meredith Solicitors Ltd