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鈥橳he fine imposed on the building company was unduly lenient.鈥� So said the Court of Appeal when Andrezej Freitag, one of that company鈥檚 bricklayers, fell 10 feet down a smoke extraction shaft, smashed his skull and died. Discovery Homes (Scotland) was, like Mr Freitag鈥檚 family, devastated by the event.

The project he was working on was a housing development in Dundee. There were about 14 employees on site when the accident occurred. The site manager was Discovery鈥檚 safety representative. He has a qualification in construction management and health and safety at work. He had been on a five-day course a few years ago. The accident happened when the men were pouring concrete to make stairs and landings. Regrettably there was an unprotected edge. Mr Freitag fell from there. All too late Discovery Homes erected a barrier.

The low level of fines was set by the first instance judge because he became concerned that a significant fine could drive discovery homes into insolvency

You might guess what happened next. The company and the site manager personally were prosecuted. They admitted guilt. The fines were 拢5,000 and 拢4,000 respectively.

That鈥檚 somewhat low, so the lord advocate brought the result to the Court of Appeal.

The low level of fines was set by the first instance judge because he examined the financial wherewithal of Discovery Homes and became concerned that a significant fine 鈥渃ould鈥� drive it into insolvency. Its turnover was about 拢3m, its accumulated profit was 拢283,000 and it鈥檚 cash in the bank was 拢10k at the date of trial. Its two directors were paid 拢50k a year by way of remuneration. Some thought was given to a restriction on those disbursements. The judge said the seriousness of the offence and the fact that the site manager was 鈥渨oefully underqualified鈥� to supervise a large project would in the normal course require the company to pay a substantial fine. The worth of the company provided a stark choice - but that would result in insolvency.

Now then, the Sentencing Guidelines Council in England and Wales has statutory powers, and these will soon apply in Scotland. The guidelines say, 鈥渨here the health and safety offence is shown to have caused death, the appropriate fine will be seldom less than 拢100,000鈥�. This accident happened in June 2009, so it was prior to the guidance. So the court was correct to determine fines based on turnover. Another, unconnected case last year resulted in a 拢240,000 fine!

Do you see how the system is targeted at people and their assets, and see too how it is all linked to the turnover of the company?

The Court of Appeal decided that the first judge 鈥渇ailed to appreciate that there was a mechanism by which Discovery could meet a much more substantial fine鈥�. That was the two 拢50k dividend payments. And if this caused hardships to the directors personally, the court said that was 鈥渘o impediment to the company through its shareholders being appropriately punished鈥�. 鈥淣or are we persuaded that it would be impossible for Discovery Homes to raise some monies from other sources鈥�. So the fine went up to 拢60k, discounted for the guilty pleas to 拢40k. As for the site manager, the court looked at his personal financial position. His monthly income was modest; he had shares valued at 拢30k locked away for his children鈥檚 education. Some thought was given to unlocking that, but in the end it was decided that his fine, while lenient, was not 鈥渦nduly lenient鈥� and was left unchanged.

Do you see how the system is targeted at people and their personal assets, and see too how it is all linked to the turnover of the company? Mr Freitag was the breadwinner for his wife and two children. Even though he was an experienced worker, the court paid no attention to that or that he could have refused to work. The reason is that there is a chance that an employer might be silently bullying its workers - although that鈥檚 not suggested here at all.

It鈥檚 public policy. 鈥淢r Freitag is not taken to have contributed to his awful misfortune. The company had failed to provide a guard rail, barrier or means of protection so as to stop anyone falling down the shaft. That鈥檚 that. As to his dependants, well there are two parts to these incidents. The first is the prosecution and the fines. The second is a civil action by his wife and children. No doubt that is all being taken care of by insurers. The fines are another matter.

Tony Bingham is a barrister and arbitrator at 3 Paper 好色先生TVs