{"id":320,"date":"2014-02-05T08:40:16","date_gmt":"2014-02-05T08:40:16","guid":{"rendered":"http:\/\/www.tayloremmet.co.uk\/blsblog\/?p=320"},"modified":"2014-02-05T08:40:16","modified_gmt":"2014-02-05T08:40:16","slug":"commercial-property-update-february-2014","status":"publish","type":"post","link":"https:\/\/www.tayloremmet.co.uk\/blogs\/commercial-property-update-february-2014\/","title":{"rendered":"Commercial property update &#8211; February 2014"},"content":{"rendered":"<p>In this month&#8217;s property update we look at the potential penalties and other implications for a business if it breaches environmental legislation. Understanding the regulator\u2019s approach to the enforcement and prosecution of environmental offences should enable businesses to minimise their risk of being prosecuted. It should also help:<\/p>\n<ul>\n<li>Reduce the level of any penalties if the business is prosecuted. \u2022 Minimise any reputational damage to the business. The main environmental regulators in England are the Environment Agency (EA) and local authorities, and Natural Resources Wales in Wales.<\/li>\n<\/ul>\n<p><strong>Penalties<\/strong><\/p>\n<p><strong>Enforcement notices<\/strong><\/p>\n<p>Environmental regulators can, in some cases, serve an enforcement notice on a business requiring it to rectify a breach of environment law. The regulator may also have the power to order the closure or suspension of the business until the breach has been rectified. Breach of any of these types of notice is a criminal offence.<\/p>\n<p><strong>Clean-up notices<\/strong><\/p>\n<p>Environmental regulators can, in some cases, serve a notice on a business requiring it to clean up any contamination (including water pollution) they have caused. Breach of this type of notice is a criminal offence.<\/p>\n<p><strong>Fines and imprisonment<\/strong><\/p>\n<p>Most breaches of environmental law are criminal offences. The penalties are usually a fine and\/or imprisonment. For cases tried in the:<\/p>\n<ul>\n<li>Magistrates\u2019 court, the maximum penalty is usually a fine of \u00a320,000 or \u00a350,000) and\/or six months\u2019 imprisonment.<\/li>\n<li>Crown Court, the maximum penalty is usually an unlimited fine and\/or two years imprisonment. The regulators can also prosecute the business\u2019 directors, managers, secretary or other similar officers (or person purporting to act in any such capacity), if it can be shown the offence was committed with their consent or connivance, or was attributable to their neglect.<\/li>\n<\/ul>\n<p><strong>Civil sanctions<\/strong><\/p>\n<p>New legislation has given regulators (including the EA and local authorities) the power to impose civil penalties on businesses, as an alternative to prosecuting, for certain types of breaches (including breaches of environmental legislation). Civil penalties include fixed monetary penalties and enforcement undertakings.<\/p>\n<p><strong>Related orders<\/strong><\/p>\n<p>For more serious offences, the court can make related orders, either at the same time as sentencing or in subsequent proceedings:<\/p>\n<ul>\n<li>Directors\u2019 disqualification order. The offender can be prohibited from acting as a company director. Breach of a directors\u2019 disqualification order is a criminal offence.<\/li>\n<li>Recovery of assets. A prosecutor (usually the EA in environmental cases in England) can refer cases to the Serious Organised Crime Agency (SOCA) after a conviction, asking SOCA to confiscate assets equal to the financial benefit gained from the criminal environmental activity.<\/li>\n<li>Serious crime prevention order. The High Court and Crown Court can make a serious crime prevention order (SCPO) after a person has been convicted of a serious offence, including a number of environmental offences, such as disposing of waste without a permit. An SCPO can be made against an individual or a business and may last for up to five years.<\/li>\n<\/ul>\n<p><strong>Adverse publicity<\/strong><\/p>\n<ul>\n<li>A conviction for an environmental offence may lead to adverse local and, in some cases, national publicity. For example, the EA publicises environmental convictions on its website as part of its \u201cname and shame\u201d policy. \u2022 Local press sometimes also sit in on criminal court proceedings. \u2022 There may be damage to the business\u2019 reputation, even if it is found \u201cnot guilty\u201d at the end of the proceedings.<\/li>\n<\/ul>\n<p><strong>Insurance<\/strong><\/p>\n<p>A conviction could increase the business\u2019 insurance premiums.<\/p>\n<p><strong>Regulatory relationship<\/strong><\/p>\n<p>The business\u2019 ongoing relationship with the regulator may be undermined.<\/p>\n<p><strong>Future sale of the business<\/strong><\/p>\n<p>A poor environmental compliance record, particularly prosecutions and convictions, can cause difficulties during the sale of a business, especially if the buyer requests environmental warranties and\/or indemnities.<\/p>\n<p>More information If you require further information on the content of this article please contact Max Marrison.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this month&#8217;s property update we look at the potential penalties and other implications for a business if it breaches environmental legislation. Understanding the regulator\u2019s approach to the enforcement and prosecution of environmental offences should enable businesses to minimise their risk of being prosecuted. It should also help: Reduce the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":901,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1491],"tags":[265,561,1692,1787],"class_list":["post-320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-property-2","tag-case-studies","tag-commercial-property","tag-environmental-legislation","tag-legal-updates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commercial property update - February 2014 | Blogs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tayloremmet.co.uk\/blogs\/commercial-property-update-february-2014\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commercial property update - February 2014 | Blogs\" \/>\n<meta property=\"og:description\" content=\"In this month&#8217;s property update we look at the potential penalties and other implications for a business if it breaches environmental legislation. 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