Corporate manslaughter – the first trial continues

The trial of the first UK company and its director to be charged under the 2007 Corporate Manslaughter act has been adjourned for legal arguments (news report).

Cotswold Geotechnical Holdings is accused over the death of 27 year old employee Alex Wright of Cheltenham. The geologist died in September 2008 when a trench collapsed on him as he collected soil samples in Brimscombe. The Company director, Peter Eaton, also faced a charge of gross negligence manslaughter.

The trial represents the first time a company has been charged under the Corporate Manslaughter and Corporate Homicide Act 2007. The firm has been charged with the criminal offence of corporate manslaughter and the company director, Mr Eaton, has been charged with the common law offence of gross negligence manslaughter. If convicted, the director could be jailed for life. The maximum sentence for his firm, which also faces charges for health and safety breaches, is an unlimited fine.

The Corporate Manslaughter Act 2007, which came into force on 6 April 2008, is a landmark law and was introduced to make corporate manslaughter cases easier to bring. For the first time, companies and organisations can be found guilty of corporate manslaughter as a result of serious management failures resulting in a gross breach of a duty of care.

Penalties that companies face include unlimited fines, remedial orders and publicity orders. A remedial order will require a company or organisation to take steps to remedy any management failure that led to a death. The court can also impose an order requiring a company or organisation to publicise that it has been convicted of the offence, giving the details, the amount of any fine imposed and the terms of any remedial order made. The publicity order provisions will not come into force until the Sentencing Guidelines Council has completed its work on the relevant guidance.

The Act is not retrospective and only applies to deaths that have occurred from 6 April 2008 onwards. Deaths that occur before 6 April 2008 will continue to be covered by the previous law on corporate manslaughter. Further information on the Act can be found here.

UPDATE: Bristol Crown Court has further adjourned the trial. Press reports have suggested that it will not commence until Autumn 2010, due to the ill-health of Mr Eaton.

UPDATE: This case began at Winchester Crown Court on 27 January 2011. Click here for full details.

UPDATE: On 15 February 2011, Cotswold Geotechnical (Holdings) Ltd was found guilty of corporate manslaughter. Click here for further details.