£500,000 fine in corporate manslaughter decision

The failed autoclave specialist Sterecycle has been convicted of corporate manslaughter following an explosion at the firm's waste processing plant.

The explosion in January 2011 resulted in the death of 42-year-old worker, Michael Whinfrey, in what police described as a 'completely avoidable incident'.

Sterecycle went into administration in 2012 and is now in the process of being liquidated.

In his sentencing remarks, the Mr Justice Jay announced a fine of £500,000 as a mark of condemnation for the offence and to act as a deterrent to others.

"The law imposes high obligations in relation to maintenance, safe operation, preservation of the safety devices, and addressing modifications in the plant and equipment. You fell far short of those obligations in all material respects," he said.

"There is a plethora of evidence that you cut corners to save money, keep production going, and to bat on, as one witness put it, until these autoclaves were retired from service.

"In my judgment, the majority of the blame for this deplorable state of affairs must be borne at senior management level, by which I mean, without being wholly specific, those at the higher end of the management tree, the true or supposed brains of the Company," said the judge at Sheffield Crown Court.

Few convictions

Sterecycle marks only the eighth successful prosecution of a company since the Corporate Manslaughter & Corporate Homicide Act 2007 came into force.

The Act was introduced in the wake of The Herald of Free Enterprise, Hatfield and Ladbroke Grove tragedies, yet convictions have been in short supply.

As with previous cases of corporate manslaughter, Sterecycle was a relatively small company. Kingsley Napley partner and health and safety law expert, Jonathan Grimes, commented that it still remains to be seen if either the legislation, or those tasked with enforcing it, will be effective in dealing with larger companies with more layers of management.

"One interesting feature of this case is that the prosecution relied not on the specified acts of individuals, but on the aggregation of failures throughout the company. This is a basis for prosecution that would not have been possible prior to the passing of this Act," said Grimes.

Identifying negligence

Previously the 'identification principle' within the Act required individual gross negligence by someone in a senior position of a company to be proven for gross negligence to be established. This principle was the reason the prosecutions of companies in the Hatfield Rail disaster, and the Herald of Free Enterprise case, failed.

Commenting on the Sterecycle judgment, Grimes added: "This case does therefore show that in the right cases management failures causing death, even in the largest companies, could form the basis for a successful corporate manslaughter prosecution.

"[The] verdict is a sign companies of all sizes need to take the Act and risk of prosecution seriously. It sends a strong message that companies should take their responsibility for the safety of employees and customers carefully or they will face severe consequences.

"Companies can face unlimited fines and management individuals can face prison sentences if convicted under the Corporate Manslaughter & Corporate Homicide Act. The successful prosecution is an important warning shot for all companies, especially their directors, HR and safety teams," he concluded.

John van der Luit-Drummond is legal reporter for Solicitors Journal