A motor mechanic who lost a finger while working in his company’s workshop has failed in his attempt to win damages from the company’s insurers, after trying to claim for his own negligence as the sole company director.
Peter Brumder tried to win damages from his company insurers after his finger was severed by a hydraulic ramp, on the basis that the Company was in breach of its statutory duty to maintain the hydraulic ramp in efficient working order.
But although the Company had breached its absolute statutory obligation to maintain equipment in efficient working order, the claim was unsuccessful. The court ruled that Mr Brumder, as sole director and shareholder of the Company, was in breach of his obligation to exercise reasonable care to enable the Company to fulfil its obligations.
The case of Brumder v Motornet came before the Court of Appeal, where the claim was dismissed on the grounds that as a director of the company, Mr Brumder should have been aware of his health and safety obligations and by failing in those, he had breached his duty as a director under the Companies Act 2006. He was a wrongdoer and he could not gain advantage from his own wrongdoing.
Head of our Corporate team Ben Madden explains that: “The statutory obligation to maintain work equipment is an absolute duty. Sole directors and sole traders should not fall into the trap of thinking ‘it’s only me and I’ll be careful’. Sole directors and sole traders must take steps to ensure that they fulfil and continue to fulfil their statutory obligations and keep up to date with legislation, ensuring equipment is properly maintained.”
