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An Auckland building company has been fined $340,000 after a construction worker fell through a flimsy plywood sheet placed over a void during a high-rise apartment development.
The sentencing of Canam Building Ltd followed a prosecution by WorkSafe New Zealand after a man was injured at the troubled Alexandra Parkapartment development late in 2017.
It is the second legal loss in a fortnight for a company linked to Auckland businessman Loukas Petrou, a director of various companies bearing the Canam name.
His Cable Bay vineyard on Waiheke Island was recently ordered to pay nearly half a million dollars in costs by the Environment Court.
Questions remain as to how and whether WorkSafe will recover the fine from Canam Building, which has since changed its name to 1962Trees Ltd.
A related company, Canam Construction, went into liquidation amid a dispute and court battle with the Auckland Trotting Club over the Alexandra Park apartment development.
Canam Limited, the current iteration of a West Auckland construction company of nearly 70 years standing, continues to trade, as do various other companies bearing the Canam name, including commercial, joinery and interiors enterprises, Companies Office records show.
The directors of the Canam companies, including Canam Building Limited which appeared for sentence in the Auckland District Court on Tuesday afternoon, are Loukas Petrou and Stephen Jones.
Canam was founded as Bonnar Gill in West Auckland in the 1950s. It was purchased by Loukas Petrou and Nick Page in 2006.
Petrou also owns luxury homes in Auckland.
Cable Bay Vineyards owner Loukas Petrou, with Caroline Petrou, at the Metro Top 50 Restaurants function in Auckland in April 2013. Photo / Norrie Montgomery
Canam Building was represented by veteran Auckland construction lawyer Graeme Christie when it appeared for sentence before Judge Simon Maude, after pleading guilty to a charge under the Health and Safety at Work Act of exposing its workers to a risk of serious injury or death.
A summary of facts for the incident read in court by Judge Maude said on the morning of November 29, 2017, workers for a subcontractor noticed a void in a section of floor next to where they intended to land steel.
The subcontractor, Outlaw Reinforcing Limited, for whom the victim worked, asked for the void to be covered before work started.
A worker for Canam Building then covered the area with two pieces of plywood and a Canam foreman said the area was safe for work.
Shortly after noon, the victim stepped on the partially-covered void, causing the ply to snap.
He fell into the void hitting his head on the frame and landed on the concrete floor 3.3 metres below.
The force of the landing caused him to have a seizure. He then fell through another open void, dropping a further 3.3m.
Emergency services were called and the victim, who suffered a gash to his head, bruising all over his body and headaches, was lifted out of the area by a crane and taken to hospital by ambulance.
He was discharged the same day and did not suffer permanent injury.
Judge Maude said the improperly-covered void posed a risk of serious injury or death to the victim and about 10 other workers.
“He was very lucky not to be more seriously injured,” Judge Maude said.
WorkSafe lawyer Alexandra Simpson sought a fine in the region of $450,000 to $500,000.
Judge Maude adopted a starting point of $400,000 and then applied a 15 per cent discount for the guilty plea, which he said was the only mitigating factor, resulting in a fine of $340,000.
The judge also awarded reparation to the victim, who was not in court and did not file a victim impact statement, of $2000, and ordered the company to pay costs of just more than $10,000.
Judge Maude said WorkSafe had sought financial evidence via Grant Thornton as to the company’s viability but found there was no availability of funds.
He left it to WorkSafe to pursue the company for the funds, either via its parent company or via liquidation.
Neither Petrou nor Jones nor any representatives of the company were in court.
Petrou’s Cable Bay was last week ordered to pay its neighbours $412,000 in legal costs - thought to be the largest-ever costs award before the Environment Court - after a judge turfed out the company’s appeal.
The case related to “illegal” activities at the vineyard, with more than 100 noise complaints since 2014.
A judge found the council initially failed to monitor Cable Bay or take prompt enforcement action in response to serious rule breaches, labelling this a neglect of duty which prolonged the case and added to expenses.
In 2018, Canam became embroiled in a legal dispute with the Auckland Trotting Club after work stopped on the development of two commercial and residential towers at Alexandra Park.
