Asbestos Prosecutions

The new Duty to Manage has been with us since 21 May 2004. It is common practice for the HSE to tread lightly in the first year or so of new regulations and then to ‘tighten the screw’ as it were thereafter.

As always, historical events are not necessarily an indication of future ones, but early prosecutions both here and in the USA (who are ahead of us with similar legislation) are a likely indication of what is to come.

The US Market

Whilst the HSE's prosecution database is small, it is interesting to reflect on what is happening across the water where the equivalent regulations have been in force for some time.

An analysis from the Internet that shows some startling statistics (all based on US organisations);

• Between now and 2014, some 100,000 Americans will die from asbestos related illnesses.
• Since the 1970's, companies have paid an estimated $20 billion in settlements and legal fees related to asbestos litigation.
• There are more than 200,000 cases pending today with the number of people expected to file injury claims possibly reaching 2.5 million.
• According to the Los Angeles Times (1/27/02), "the economic toll of asbestos could run as high as $200 billion, higher than estimates for all Superfund sites combined, Hurricane Andrew or the Sept. 11 terrorist attacks".
• In the past two years there has been a proliferation of claims by unimpaired plaintiffs alleging marginal medical conditions or "possible" future illnesses.
• Over 70 household named companies have filed for bankruptcy, SOLELY because of claims relating to asbestos. And these companies are not all asbestos Manufacturers.
• Currently, 8400 companies face current asbestos litigation; these companies include:
  • Campbell's Soups
  • Dow Jones & Co.
  • Sears
  • Ernest and Julio Gallo Winery

There is probably at least an even chance that a similar pattern will follow in the UK over the coming months unless organisations attend to their duties properly. This includes the management & auditing process for which we have one of the best tools available now.

Source information includes: Hamilton Consulting, III

UK Asbestos Fines

We are grateful to our partners, Callsafe Services for the following information which I know our readers will find interesting;

Poundstretcher

The supermarket chain Poundstrecher was ordered to pay £15,000 in fines and costs after a court heard how staff were exposed to the risk of inhaling asbestos fibres at one of its stores. Asbestos insulating board in the stores unloading area had become damaged as a result of pallets bumping against it, leaving debris containing asbestos on the floor. As a result the court heard that staff were exposed to the risk of inhaling asbestos fibres during routine work activities, including sweeping debris from the floor near the damaged boarding. The court further heard that although an asbestos survey undertaken in 1995 had identified the presence of asbestos in the store, the company had failed to put in place an adequate system to manage it. In particular, Poundstrecher should have identified and labelled the asbestos boarding and monitored its condition. The prosecuting inspector also told the court that the survey was treated as a paper exercise, with the presence of asbestos being subsequently forgotten. Poundstrecher were found guilty under Section 2(1) HSWA for failing to ensure the health and safety of employees.

Dalebrick Ltd

Dalebrick Ltd of Nuneaton, Warwickshire and its officers were fined a total of £245,000 in relation to the removal of asbestos from premises in Birmingham. Dalebrick Ltd were contracted to remove asbestos from the premises and hired a team of temporary workers to carry out work on site but did not warn them of the risk of asbestos exposure. HSE were alerted by a member of the team of workers and ordered work to stop.

Work had not been carried out in accordance with HSE guidelines and no lavatories or running water had been provided for the employees. The company pleaded guilty to breaches of the Health and Safety at Work Act 1974, the Control of Asbestos (Licensing) Regulations 1987 and the Control of Asbestos at Work Regulations 1987.

Fines of £50,000 for each offence were imposed and, in addition, the company were ordered to pay costs of £65,000. Mr Morris Edward Williams was fined £10,000 for each of four offences, ordered to pay £10,000 costs and disqualified from holding any directorship for two years Ms Joanne Carroll was fined £2,500 for each of two offences, ordered to pay £500 costs and disqualified from holding any directorship for one year.