In a significant legal ruling, the Victorian Court of Appeal has more than doubled the fine originally imposed on LH Holding Management Pty Ltd, marking the first legal proceedings under Victoria’s workplace manslaughter laws. The company was fined $1.3 million in February 2024 following the tragic death of Michael Tsahrelias, who was killed when a forklift crushed him in October 2021.
The Director of Public Prosecutions (DPP) appealed the initial sentence, asserting that it was grossly inadequate due to the company’s severe negligence. The court agreed, stating the original fine did not adequately reflect the seriousness of the offence or serve as a deterrent. Consequently, LH Holding Management was re-sentenced to a hefty $3 million fine, as the judges were concerned about conveying a clear message regarding workplace safety to the public.
The judges noted that while the new fine would likely be “ruinous” for the company, fulfilling the goals of general deterrence was paramount. They acknowledged the possibility that the fine may go unpaid, but emphasised its importance in upholding community expectations for workplace responsibility.
In addition to the company’s fine, the DPP also challenged the two-year community corrections order previously given to the company’s director, Laith Hanna. Hanna was operating the forklift carrying a metal A-frame rack when he made the unsafe decision to navigate a downward slope. Tsahrelias attempted to stabilise the load, which was precariously suspended approximately two metres in the air, but the forklift tipped over, leading to the fatal accident. Hanna did attempt to revive Tsahrelias after the incident, but the young man unfortunately died at the scene.
While the Court of Appeal found the community corrections order was indeed lenient, they decided it would remain, with Justice James Gorton specifically opining that the initial $1.3 million fine was appropriate when considering the gravity of the incident and the company’s circumstances. Ultimately, however, the majority of the court ruled in favour of increasing the company’s fine, reflecting a decisive stance on workplace safety accountability.
These prosecutions are noteworthy as they are the first instances in Victoria since the introduction of workplace manslaughter laws in 2020, underscoring a commitment to enforcing stringent safety standards in the workplace.