SafeWork NSW v Miller Logistics Pty Ltd

[2024] NSWDC 119

District Court

New South Wales

Medium Neutral Citation:

SafeWork NSW v Miller Logistics Pty Ltd [2024] NSWDC 119

Hearing dates:

18 April 2024

Date of orders:

18 April 2024

Decision date:

18 April 2024

Jurisdiction:

Criminal

Before:

Russell SC DCJ

Decision:

(1)   Miller Logistics Pty Ltd is convicted.

(2)   Order Miller Logistics Pty Ltd to pay a fine of $450,000.

(3) Order pursuant to Section 122(2) of the Fines Act 1996 (NSW) that 50% of the fine is to be paid to the prosecutor.

(4)   Order Miller Logistics Pty Ltd to pay the prosecutor’s costs.

(5)   Direct the solicitor for the prosecutor to send a copy of this judgment to the liquidator of Miller Logistics Pty Ltd.

Catchwords:

CRIMINAL LAW – prosecution – work health and safety – duty of persons undertaking business – risk of death or serious injury

SENTENCE – objective seriousness – mitigating factors – aggravating factors – plea of guilty – general deterrence – specific deterrence – capacity to pay appropriate penalty

COSTS – prosecution costs

OTHER – forklift hit pedestrian worker at depot – inadequate traffic management plan – no separation of pedestrians and forklifts

Legislation Cited:

Crimes (Sentencing Procedure) Act 1999 (NSW), ss 3A, 21A,

Fines Act 1996 (NSW), s122

Work Health and Safety Act 2011 (NSW), ss 3, 19, 32

Cases Cited:

Baumer v R [1988] HCA 67; (1988) 166 CLR 51

Bulga Underground Operations Pty Limited v Nash [2016] NSWCCA 37; (2016) 93 NSWLR 338

BW v R [2011] NSWCCA 176

Capral Aluminium Limited v WorkCover Authority of New South Wales [2000] NSWIRComm 71; (2000) 49 NSWLR 610

Muldrock v The Queen [2011] HCA 39; (2011) 244 CLR 120

Nash v Silver City Drilling (NSW) Pty Limited; Attorney General for NSW v Silver City Drilling (NSW) Pty Limited [2017] NSWCCA 96

R v McNaughton [2006] NSWCCA 242; (2006) 66 NSWLR 566

R v Wilkinson (No. 5) [2009] NSWSC 432

SafeWork NSW v Miller Logistics Pty Ltd; SafeWork NSW v Mitchell Doble [2024] NSWDC 58

Unity Pty Limited v SafeWork NSW [2018] NSWCCA 266

Veen v The Queen (No. 2) [1988] HCA 14; (1988) 164 CLR 465

Category:

Sentence

Parties:

SafeWork NSW (Prosecutor)
Miller Logistics Pty Ltd (Defendant)

Representation:

Counsel:
M Scott (Prosecutor)

Solicitors:
Department of Customer Service (Prosecutor)

File Number(s):

2022/144479

Judgment

1. On 4 November 2020 Mr Christopher Herden, a truck driver employed by Zentry Pty Ltd was working at a transport depot operated by Miller Logistics Pty Ltd (Miller) in Tamworth (the site). Miller traded as Doble Express Transport. Mr Herden was working on foot assisting the driver of a B-Double trailer which was located in the loading/unloading area at the site. Mr Herden was struck by a forklift driven by another worker. Mr Herden suffered serious injuries.

2. On 8 March 2024 I found Miller guilty of an offence that as a person who had a work health and safety duty pursuant to s 19 of the Work Health and Safety Act 2011 (NSW) (WHS Act) it failed to comply with that duty and thereby exposed workers, in particular Mr Herden, to a risk of death or serious injury contrary to s 32 of the WHS Act: SafeWork NSW v Miller Logistics Pty Ltd; SafeWork NSW v Mitchell Doble [2024] NSWDC 58 (the primary judgment).

3. The maximum penalty for the offence is a fine of $1,766,130.

Reasonably Practicable Measures

4. At [235-238] and [242-250] of the primary judgment I found that the steps pleaded in subpars 14(a), (b), (c), (d), (g), (h) and (i) of the Summons were reasonably practicable measures which the defendant should have taken to comply with the duty under s 19(1) of the WHS Act. Those particulars are as follows:

“14. The defendant failed to comply with its duty under section 19(1) of the Act and failed to ensure, so far as is reasonably practicable, the health and safety of workers, in particular Mr Herden, in that it failed to take one or more of the following measures, each of which is alleged to have been reasonably practicable, to eliminate, or alternatively minimise, if it was not reasonably practicable to eliminate, the risk:

a)   Provide a designated loading and unloading zone in the loading/unloading area at the premises; and/or

b)   Provide designated and clearly marked forklift movement lanes in the loading/unloading area at the premises; and/or

c)   Provide designated and clearly marked pedestrian exclusion zones in the loading and unloading area at the premises; and/or

d)   Install a physical barrier in the loading/unloading area at the premises to separate pedestrians and powered mobile plant; and/or

…

g)   Develop, implement and enforce a safe work procedure for loading/unloading trucks and/or a traffic management plan at the premises which:

i.   identified the risk of being struck by a forklift at the premises;

ii.    described the control measures to be implemented to eliminate or control the risk, such as those measures outlined in paragraphs (a) - (f) above; and/or

h)   Provide, or require and verify that Zentry provide, an induction to new workers, which included information, instruction and training in relation to the safe work procedure and/or traffic management plan, identified in paragraph (g) above.

i)   Provide, or require and verify that Zentry provide, supervision to workers undertaking duties in the loading/unloading area to ensure that the safe work procedures and/or the traffic management plan was followed, such as those set out in paragraph (g) above.”

Background

5. In the primary judgment at [228-255] I made findings of fact. I will not set out those findings in full, but I incorporate them by reference into this judgment.

Evidence for the Defendant

6. There was no evidence for the defendant, which is in liquidation.

Consideration

7. I have had regard to the objects in s 3 of the WHS Act and the purposes of sentencing set out in s 3A of the Crimes (Sentencing Procedure) Act 1999 (NSW) (CSP Act).

Objective Seriousness of the Offence

8. The proportionality principle requires that a sentence should neither exceed nor be less than the gravity of the crime having regard to the objective circumstances: Veen v The Queen (No. 2) [1988] HCA 14; (1988) 164 CLR 465 at 472, 485-6, 490-1 and 496. At common law, the term “objective circumstances” was used to describe the circumstances of the crime. The gravity of the offence was assessed by reference to its objective seriousness: R v McNaughton [2006] NSWCCA 242; (2006) 66 NSWLR 566 at [15].

9. The task requires the court to consider where in the range of conduct covered by the offence the conduct of the offender falls: Baumer v R [1988] HCA 67; (1988) 166 CLR 51 at 57. This assessment will generally indicate the appropriate range of sentences available which will reflect the objective seriousness of the offence committed, and set the limits within which a sentence proportional to the criminality of the offender will lie: BW v R [2011] NSWCCA 176 at [70].

10. In Muldrock v The Queen [2011] HCA 39; (2011) 244 CLR 120 at [27] the High Court said:

“The objective seriousness of an offence is to be assessed without reference to matters personal to a particular offender or class of offenders. It is to be determined wholly by reference to the nature of the offending.”

11. The sentencing judge should take into account not only the conduct which actually constitutes the crime, but also such of the surrounding circumstances as are directly related to that crime and are properly regarded as circumstances of aggravation or mitigation: R v Wilkinson(No. 5) [2009] NSWSC 432 at [61].

12. The existence of a reasonably foreseeable risk to safety that is likely to result in serious injury or death is a factor relative to the gravity of the offence: Capral Aluminium Limited v WorkCover Authority of New South Wales [2000] NSWIRComm 71; (2000) 49 NSWLR 610 at [82]. The question of foreseeability of the risk is to be determined objectively.

13. The court must identify all the factors that are relevant to the sentence, discuss their significance and then make a value judgment as to what is the appropriate sentence given all the factors of the case: Muldrock. This approach to sentencing, known as the “instinctive synthesis” approach, involves the making of a global judgment without any attempt to state precisely how any given factor has influenced the judgment.

14. The Court of Criminal Appeal has examined the sentencing process with regard to the WHS Act in the matter of Nash v Silver City Drilling (NSW) Pty Limited; Attorney General for NSW v Silver City Drilling (NSW) Pty Limited [2017] NSWCCA 96. Justice Basten at [34], under the heading “Assessment of Risk” said:

“The sentencing judge commenced his consideration with the proposition that ‘greater culpability attaches to the failure to guard against an event the occurrence of which is probable rather than an event the occurrence of which is extremely unlikely’. However the truth of that proposition depends upon other considerations including (a) the potential consequences of the risk, which may be mild or catastrophic, (b) the availability of steps to lessen, minimise or remove the risk, and (c) whether such steps are complex and burdensome or only mildly inconvenient. Relative culpability depends on assessment of all those factors.”

15. Further at [42] his Honour continued:

“The culpability of the Respondent is not necessarily to be determined by the remoteness of the risk occurring, nor by a step‑by‑step assessment of the various elements. Culpability will turn upon an overall evaluation of various factors, which may pull in different directions. Culpability in this case is reasonably high because, even if the [event] which occurred might not be expected to occur often, the seriousness of the foreseeable resultant harm is extreme and the steps to be taken to avoid it, which were not even assessed, were straightforward and involved only minor inconvenience and little, if any, costs.”

16. At [53] his Honour dealt with the proper approach to considering the objective seriousness of offences under the WHS Act, saying:

“It is important to note that the risk to be assessed is not the risk of the consequence, to the extent that a worker is in fact injured, but is the risk arising from the failure to take reasonably practicable steps to avoid the injury occurring. To discount the seriousness of the risk by reference to the unlikelihood of injury resulting is apt to lead to error. The conduct in question is the failure to respond to a risk of injury, conduct which will be more serious, the more serious the potential injuries, whether or not they are likely to materialize. The objective seriousness of the conduct will also be affected by the ease with which mitigating steps could have been taken.”

17. My findings about the defendant’s level of culpability are based upon the following:

1. The risk of a collision between a forklift and a worker on foot was known to exist at other Miller depots. Miller ought to have known that the risk existed at the Tamworth depot. Further, there was ample guidance material advising PCBUs of the risk.

2. There was a significant likelihood that the risk would occur, particularly in areas where forklifts were working on one task, and workers on foot were employed on another task. Neither would have been looking out for each other.

3. The potential consequences of the risk were death or serious injury.

4. Steps were available to eliminate or minimise the risk. Appropriate steps were taken immediately after the incident by Miller.

5. There was little or no burden or inconvenience in implementing those steps.

6. Mr Herden suffered a significant injury through the breach of duty committed by Miller.

18. I find that the level of culpability of Miller is in the mid range.

Deterrence

19. The penalty imposed in relation to this offence must provide for general deterrence. Employers must take the obligations imposed by the WHS Act very seriously. The community is entitled to expect that both small and large employers will comply with safety requirements. General deterrence is a significant factor when safety obligations are breached: Bulga Underground Operations Pty Limited v Nash [2016] NSWCCA 37; (2016) 93 NSWLR 338 at [180].

20. There is no need for specific deterrence as Miller is in liquidation and no longer conducting a business.

Aggravating Factors

21. The injury, emotional harm, loss or damage caused by the offence was substantial: s 21A(2)(g) CSP Act.

Mitigating Factors

22. Miller has no previous convictions: s 21A(3)(e) CSP Act.

Capacity to Pay a Fine

23. As Miller is in liquidation, this issue does not arise.

Costs

24. There will be an order for the prosecutor’s costs.

Penalty

25. My orders are:

1. Miller Logistics Pty Ltd is convicted.

2. Order Miller Logistics Pty Ltd to pay a fine of $450,000.

3. Order pursuant to Section 122(2) of the Fines Act 1996 (NSW) that 50% of the fine is to be paid to the prosecutor.

4. Order Miller Logistics Pty Ltd to pay the prosecutor’s costs.

5. Direct the solicitor for the prosecutor to send a copy of this judgment to the liquidator of Miller Logistics Pty Ltd.

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Decision last updated: 18 April 2024