SafeWork v Omega International and Shetty

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District Court

New South Wales

Case Name: 

SafeWork v Omega International and Shetty

Medium Neutral Citation: 

[2016] NSWDC 11

Hearing Date(s): 

01 February 2016

Date of Orders:

1 February 2016

Decision Date: 

1 February 2016

Jurisdiction: 

Criminal

Before: 

Curtis J

Decision: 

Omega International Coatings Pty Ltd:
The defendant is convicted and fined
The prosecutor is to have a moiety of the fine
Kananjar Shetty:
Pursuant to section 10 of the Crimes (Sentencing Procedure) Act, I dismiss the charge and record no conviction

Catchwords: 

CRIMINAL LAW – prosecution – work health and safety – static electricity fire – failures of the defendant were not of a systemic nature 
SENTENCE – mitigating factors – fine – capacity to pay – circumstances – appropriate penalty

Legislation Cited: 

Occupational Health and Safety Act 2000
Fines Act 1996
Crimes (Sentencing Procedure) Act 1999

Category: 

Sentence

Parties: 

SafeWork New South Wales (Prosecutor)
Omega International Coatings Pty Ltd (Defendant)
Kananjar Shetty (Defendant)

Representation: 

Counsel:
P McDonald SC with S Walsh appeared for the Prosecutor
Y Shariff appeared for the Defendants

Solicitor:
SafeWorkNSW Legal Services
Carroll & O'Dea Lawyers

File Number(s): 

2012/387526; 2012/387961

Publication Restriction: 

None

  1. The defendant, Omega International Coatings Pty Ltd, repairs industrial coatings at its premises at two places in Kurrajong Avenue, Mount Druitt. In the course of the preparation of those coatings, inflammable liquids are combined.

  2. On 28 January 2011, when an employee, Mr Konchok Lama, was decanting toluene from a 1,000 litre container into another container for the purpose of manufacturing paint thinner, the toluene ignited, causing an extensive fire.    

  3. The defendant is charged pursuant to s 8(1) of the Occupational Health and Safety Act 2000 (the Act) that it failed to ensure that the defendant’s employees including Mr Lama and two other persons were not exposed to risk to their health and safety contrary to s 8(1) of the Act.

  4. The particulars of the charge are in summary that:

    First the defendant failed to adequately assess the risks that could arise from operations at the site including the risks of the decanting system and the risk of failing to dissipate static electricity.

    Second that the defendant should have ensured that the container being used for decanting was of a suitable type with antistatic wires that prevented the possibility of ignition and,

    Third, that the defendant failed to provide adequate information, instruction and training to Mr Lama in relation to his work.

  5. The cause of the ignition was the discharge of static electricity. In the course of agitating toluene there is a risk that static electricity may build up and that its discharge may cause a spark.

  6. In order to obviate that risk the appropriate practice is that each container be fitted with a static wire leading from the contents to an earthing cable on the steel cage of the container. Through those connections any accumulation of positive electrons within either drum may safely pass to earth.

  7. It is common ground that Mr Lama properly connected the earthing cables of the donor drum…

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Details
Case
[2016] NSWDC 11
Decision Date

CaseChat Overview and Summary

SafeWork prosecuted Omega International Coatings Pty Ltd and Kananjar Shetty for breaches of work health and safety legislation resulting from a static electricity fire. The dispute centred on whether the breaches were due to systemic failures and the appropriate penalty for the defendants. The case was heard in the District Court of New South Wales. The court had to determine if the failures of the defendant were systemic and, if so, what penalty was appropriate considering the circumstances and the capacity to pay.

The court found that the failures of Omega International were not systemic. The breaches were due to a lack of knowledge and understanding of the risks, rather than a broader organisational failure. Regarding Shetty, the court acknowledged that he was not in a position of significant responsibility within the company and had taken steps to rectify the issues. The court considered the mitigating factors, including the defendants' capacity to pay and the overall circumstances of the case, in determining the appropriate penalty.

Considering the evidence and submissions, the court found that Omega International was guilty of the charges and fined them accordingly. The court also ordered that a moiety of the fine be paid to the prosecutor. Shetty, on the other hand, was acquitted due to the mitigating factors and the lack of significant responsibility. The court dismissed the charge against Shetty and recorded no conviction, pursuant to section 10 of the Crimes (Sentencing Procedure) Act.

Orders

Orders of the court

Omega International Coatings Pty Ltd:

The defendant is convicted and fined

The prosecutor is to have a moiety of the fine

Kananjar Shetty:

Pursuant to section 10 of the Crimes (Sentencing Procedure) Act, I dismiss the charge and record no conviction

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

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