Auckland businessman settles for $4 million after workplace death: reports

Auckland businessman Ronald Salter has reached a $4-million settlement in a legal case linked to a fatal workplace accident at his oil recycling facility, Salters Cartage Limited (SLC).

The settlement was approved by the High Court in Auckland on Monday, following the tragic death of 24-year-old Jamey Lee Bowring in 2015, Stuff reported.

Bowring lost his life when a 96,000-litre tank, filled with a volatile mixture of petrol, diesel, and kerosene, exploded while he was welding at the facility. The force of the blast hurled Bowring more than 100 metres into a nearby car park, resulting in his death.

The legal proceedings were initiated by police under the Criminal Proceeds (Recovery) Act (CPRA), alleging that Salter and his company unlawfully benefited from significant breaches of workplace safety laws and hazardous substance regulations.

"SCL failed to ensure the safety of its site and Salter financially benefited from those very failings," said Financial Crime Group Detective Inspector Lloyd Schmid as quoted by Stuff.

Originally, a seven-week trial commenced last week, but discussions for settlement began shortly after the police commissioner opened the case.

The settlement allows SLC and Salter to jointly forfeit the $4 million without further legal expenses incurred by the police.

Concerns over CPRA use

The High Court's decision comes amid broader concerns regarding the application of the CPRA, particularly in the context of workplace safety violations.

This is the first time that the CPRA has been used in the health and safety context. It allows for the forfeiture of property that has been derived directly or indirectly from significant criminal activity, or that represents a person's unlawfully derived income.

Schmid acknowledged these concerns on the use of the CPRA, stating: "We're aware of concerns within the business community about the application of the CPRA in these circumstances."

But he assured that the police have no intention of using the CPRA routinely for offences against the Health and Safety at Work Act.

"This case, largely brought on the basis of breaches of regulations relating to hazardous substances, had some unique features and aggravating circumstances, including the tragic death of a young man," Schmid said as quoted by Stuff.

"Police will however consider any future cases on a case-by-case basis."

Salter's safety history

Prior to the settlement, Salter's legal history includes a guilty plea in 2017 to charges filed by WorkSafe, which resulted in a sentence of four-and-a-half months of home detention.

He was personally fined $25,000 for violating a prohibition against working on-site after the explosion, and his company faced fines totalling $258,750 for various breaches of safety regulations. Furthermore, SLC was ordered to pay $110,000 in emotional harm reparations to Bowring's family.

In late 2019, restraining orders were also placed on four properties owned by Salter and his wife, Natalie Salter, along with their family trusts.

These orders were intended to prevent the sale of the properties while legal proceedings were ongoing. Police initially filed for asset forfeiture in September 2022, with a hearing scheduled for October.