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Corporate Manslaughter

Wednesday 23rd February 2011

Cotswold Geotechnical Holdings convicted of first corporate manslaughter charge under new Act
15/02/2011

Cotswold Geotechnical Holdings has today become the first company to be convicted of the new offence of corporate manslaughter.

Alex Wright was 27-years-old when he died on 5 September 2008. He was a geologist for Cotswold Geotechnical Holdings and was investigating soil conditions in a deep trench on a development plot in Stroud when it collapsed and killed him.  

Kate Leonard, reviewing lawyer from the Crown Prosecution Service (CPS) Special Crime Division, said: 

"Alex Wright was a young man, full of promise. His death is a tragedy for all those who loved him and would never have happened if Cotswold Geotechnical Holdings had properly protected him.   

"I hope that this conviction offers his family some sense of justice. I send them my sincere condolences once again."

The CPS told the court that Mr Wright was left working alone in the 3.5 metre-deep trench to 'finish-up' when the company director left for the day. The two people who owned the development plot decided to stay at the site as they knew Mr Wright was working alone in the trench. About 15 minutes later they heard a muffled noise and then a shout for help. 

While one of the plot-owners called the emergency services, the other one ran to the trench where he saw that a surge of soil had fallen in and buried Mr Wright up to his head. He climbed into the trench and removed some of the soil to enable Mr Wright to breathe. At that point, more earth fell so quickly into the pit that it covered Mr Wright completely and, despite the plot owners best efforts, Mr Wright died of traumatic asphyxiation. 

The prosecution's case was that Mr Wright was working in a dangerous trench because Cotswold Geotechnical Holdings' systems had failed to take all reasonably practicable steps to protect him from working in that way. In convicting the company, the jury found that their system of work in digging trial pits was wholly and unnecessarily dangerous. The company ignored well-recognised industry guidance that prohibited entry into excavations more than 1.2 metres deep, requiring junior employees to enter into and work in unsupported trial pits, typically from 2 to 3.5 metres deep. Mr Wright was working in just such a pit when he died. 

There was no person in the dock at Winchester Crown Court during the three-week trial as it is the company, rather than an individual, which is charged with corporate manslaughter.   

The case was investigated by Gloucestershire Constabulary and supported by the Health and Safety Executive.   

Cotswold Geotechnical Holdings was sentenced on Thursday 17 February 2011. 

Sentence
 
As part of the sentencing, Companies can have remedial orders imposed upon them, be forced to publish the conviction and be fined. In the Cotswold case the fine was £385,000, below the minimum sentencing guidelines issued by the Sentencing Guidelines Council in 2010 of £500,000, but in this case perhaps reflecting the limited financial means of the business.
 
The fine will be payable over 10 years and the Judge recognised it may affect the company's ability to stay in business "It may well be that the fine in the terms of its payment will put this company into liquidation. If that is the case it's unfortunate but unavoidable. But it's a consequence of the serious breach".
 
The Principal, Peter Eaton has also been charged with Manslaughter.


Air Conditioning Change in Requirements

Wednesday 19th January 2011

New Year, New Regulations!
Air conditioning change in requirements.
 
As we all return to work and absorb the changes and challenges that a new year brings we also have changes within the regulatory world.
 
The last phase of the Energy Performance of Buildings Regulations (EPBR) comes into force with effect from the 4th January 2011. These regulations have been in place since 2007 and were introduced in several phases. This brought in Energy Performance Certificates (EPC's) and others. However the latest part and one which will affect many businesses and clients who may have been exempt from earlier phases, is the lowering of the size requirement for air conditioning systems.

From the above date, all
air conditioning systems with a cooling (or heating) capacity of greater than 12kW requires to be surveyed and reported upon. This is a reduced threshold from the previous 250kW and when completed, the survey findings last for 5 years. It is also accompanied with a recommendation report which can identify ways to operate the system more effectively and thus save operating costs. At this time of the year this is uppermost in many of our minds.

The capacity is the total system cooling capacity taking into account all units and the significant lowering of the size will include many small packaged units, such as may be purchased from electrical retailers on the high street.

This legal requirement to have the efficiency of air conditioning systems assessed fulfils part 4 of the regulations, which also contribute to the Government's strategy to meet its climate change targets.

If you would like further information or require this service, please
e-mail or call us on 01491 578759.


EMPLOYERS LIABILITY: INTRODUCTION OF THE EMPLOYERS LIABILITY TRACING OFFICE

Monday 27th September 2010

EMPLOYERS LIABILITY: INTRODUCTION OF THE EMPLOYERS LIABILITY TRACING OFFICE (ELTO) - APRIL 2011
Background
Since 1999 the ABI and insurance industry have operated a voluntary code of practice (ELCOP) to search for historical Employers Liability policy records, in order to help claimants find the insurer of their former employer when seeking to claim compensation for a disease/injury caused at work. 
Whilst this facility has enjoyed a degree of success, it is recognised that a more effective tracing solution is required and consequently the Employers’ Liability Tracing Office (ELTO) was set up in April this year to establish a central database (ELD) to store the required information from all member insurers.
Timescales
Currently, all EL insurers are invited to join on a voluntary basis. In early 2011 it is expected that the FSA will introduce compulsory regulations for all EL insurers in the UK to publish EL data by either becoming a member of a tracing office (such as ELTO) or by publishing their data on their own website.
ELTO’s members will be required to supply policy data to the ELD on all new and renewed EL policies from 1st April 2011. The ELD will be accessible for claimant searches from this date via www.elto.org.uk.
To help improve future searches, additional information such as all subsidiary names and the Employer Reference Number for the policyholder will be required. Members will start to collect this information from brokers from April 2011.
Next steps for you
In order to ensure that a comprehensive database is compiled as quickly as possible, it is up to the industry to work together. This initial communication is to raise awareness of ELTO and its aims. You will be hearing more in the coming months in respect of the actions that you will need to take to ensure that the ELD works effectively.
This information, along with all future updates regarding ELTO, will be available here.


First Corporate Manslaughter case under new law

Wednesday 30th September 2009

Cotswold Geotechnical Holding (CGH) has become the first company to be prosecuted under new Corporate Manslaughter legislation following an incident in which an employee was crushed to death. Junior Geologist Alexander Wright who had worked for the company for two years, was taking soil samples inside a pit as part of a site survey when the sides collapsed crushing him to death.

 

The Corporate Manslaughter and Corporate Homicide Act was introduced in 2007 to make companies liable for deaths that result from a general breach of the duty of care that the firm has to both its employees and the public. CGH director Peter Eaton has been charged with gross negligence, manslaughter and an offence contrary to section 37 of the Health and Safety at Work Act 1974; he faces charges both as an individual and on behalf of the company. The case has been referred to Bristol Crown Court by Stroud Magistrates for a preliminary hearing.

 

If found guilty, the company could face an unlimited fine and a publicity order forcing them to widely publicise their conviction. If the director is convicted he could face imprisonment. The maximum sentence for gross negligence manslaughter is life, while a conviction under Health & Safety legislation could mean a maximum of two years under a recent amendment which came into force in January.


Employers' Liability Insurance

Wednesday 29th October 2008

The law relating to the display of employers’ liability insurance certificates has changed, so employers no longer have to display hard copies of their certificates so long as the certificate is made available in electronic format, and is reasonably accessible to relevant employees.

 

The new rules (outlined in the Employers’ Liability [Compulsory Insurance] [Amendment] Regulations 2008) have also removed the requirement to retain policy certificates for a period of 40 years.

 

Some concerns were raised during the consultation process that removing the requirement to store the certificates for 40 years would make it harder for employers to identify the appropriate insurer when making claims for ‘long-tail’ diseases. However, it was concluded that there were alternative ways to trace old insurance policies that did not involve the retention of certificates.

 

The amended Regulations do not, of course, affect the fundamental requirement on employers to have employers’ liability insurance providing at least £5m of cover.


AIG UK Limited

Thursday 2nd October 2008

In the light of the extraordinary developments in the financial markets AIG Inc. announced overnight that it had secured financial support from the Federal Reserve Bank of New York to resolve liquidity constraints. With regards to AIG UK Limited:

  • AIG UK’s ability to pay claims and to protect companies and consumers in the UK and around the world is undiminished
  • AIG UK Limited is a stand alone UK regulated insurance company, separate from any other AIG Group legal entity. As a separate company AIG UK retains assets and capital to meet its UK policy obligations ensuring continued protection for its policyholders
  • AIG UK Limited is regulated by the Financial Services Authority. It maintains capital in excess of £900 million which exceeds the regulatory requirement and complies with all applicable regulatory requirements
  • AIG UK Limited maintains strong liquidity and generates significant positive cash flow
  • AIG UK’s financial strength ratings as at 16th September 2008 are A+ from S&P, A1 from Moody’s and AA- from Fitch (ratings “watch negative”)
We are grateful to brokers and clients for their continued support and patience and we will continue to communicate developments as they arise.

Lex Baugh
Managing Director, AIG UK Limited


Huge rise in cases going to Employment Tribunals

Wednesday 16th January 2008

In the last two years the number of cases going to employment tribunals has risen by more than 50% and this is just the tip of the iceberg as the majority of cases never actually get to court.
 
You may have experienced this for yourself with the increase being driven by disputes about equal pay, unfair dismissal, age, sex, race and disability discrimination.
 
MANNINGUK will include this as part of our pre renewal agenda but if you would like to discuss this prior to that meeting please contact one of the following:

Tel: 01491 578 759
 
  • Ann Manning                 Extension 201
  • Richard Wright              Extension 207
 
 
 
Issued January 2008


Watch out for Christmas

Saturday 1st December 2007

As companies all over the country start to organise this year’s Yuletide festivities employers should ensure their celebrations aren’t going to discriminate on grounds of religion. It may sound like a potential minefield, but very few tribunals arise as a result of Christmas parties.

 

Nevertheless, employers should think carefully about how to approach the office party which traditionally revolves around alcohol. This could fall foul of the Employment Equality (Religion or Belief) Regulations 2003, so employers need to be sensitive to all of their employees’ beliefs. Muslim

workers, for example, might be reluctant to attend a party that involves copious alcohol consumption.

 

Reports last year claimed that employers were cancelling Christmas celebrations for fear of tribunal action, but draconian measures aren’t necessarily the way forward and allowing alcohol at Christmas parties is unlikely in itself to cause problems.

 

Problems could arise, however, where excesses lead to bad – even threatening – behaviour. Employers can minimise discontent by organising celebrations designed to include all members of staff.

 

With regard to office closures over the festive season, employers are within their rights to incorporate such bank holidays into employees' annual holiday entitlement, but this must be written into staff contracts of employment and subject to the minimum holiday requirement.

Unless an employee's contract says otherwise, an employer can specify in advance any period in which their staff may, or may not, take holiday. The legal requirement is at least twice as many days in advance of the start of the period of leave – so if you want staff to take 28, 29 and 30 December as holiday, you must tell them six days before, on 22 December.

 

Employers could also find it difficult to enforce a shut down without a commercial reason. Of course, if the office is closed, there is nothing unlawful about requiring employees to use their annual leave entitlement to take time off work as long as you give them sufficient notice. Religious discrimination laws are far more likely to be used by religious employees who are not permitted to take leave during a religious festival that has significance for them.

December 2007 – IRIB Institute of Registered Insurance Brokers


Independent Insurance Company Directors Jailed!

Tuesday 30th October 2007

The former chief executive of the Independent Insurance Michael Bright (62 years) which collapse in 2001 started a seven year jail sentence this week.

Judge Geoffrey Rivlin when sentencing Bright said he was the "architect and driving force" in covering up the company's finances and he "corrupted a lot of people along the way". Bright was also disqualified from being a company director for 12 years.

Dennis Lomas former finance director was sent to jail for four-years together with the ex-deputy managing director Philip Condon who received a three-year sentence after they too were convicted of conspiring to defraud fellow "directors, employees, actuaries, auditors, re-insurers, shareholders, policyholders and others by dishonestly withholding claims data". Lomas and Condon were also disqualified for being a company director for 10 years.


HONESTY IS THE ONLY POLICY AS INSURERS UNCOVER MORE FRAUDS

18th October 2007

(article issued by the Association of British insurers 18 october 2007)

Insurance companies are uncovering and preventing fraudulent insurance claims worth over £1 million every day according to latest research from the ABI (Association of British Insurers). The ABI’s latest research into general insurance fraud reveals that:

Insurers are uncovering and preventing fraudulent claims worth £480 million a year, or £1.3 million every day. This is three times the amount detected in 2003.

One in 11 claims - around one million - are in some way fraudulent. Of these 85% involved exaggerating the value of a genuine loss.

Nearly a half of all detected fraud was on household insurance. Typical scams exposed include deliberately damaging carpets then claiming the damage was caused accidentally.

Nick Starling, Director of General Insurance and Health at the ABI, said:
“Fraudulent insurance claims cost £1.6 billion, and add £40 a year to the premiums paid by honest customers. But the industry is fighting back. Insurance cheats are more likely to be caught than ever before. And cheats will pay a high price as future insurance and credit will be more expensive and harder to obtain.” 

Some of the more unusual fraudulent claims uncovered by insurers include:

- A man claimed for ‘recovery expenses’ following a heart attack he suffered while on holiday in West Africa, which was for the services of a local brothel!

- A woman reported her husband for exaggerating his injuries following a car accident hours after he left her having collected a £385,000 compensation settlement.

- A keen amateur footballer claimed to be unable to work following a back injury. His fraud was exposed when a local newspaper carried his picture after he was named as his local football club player of the year.

- A cash-strapped policyholder pushed his car over a cliff then claimed it had been stolen so he could pay his debts.

http://www.abi.org.uk/


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