RPI Coating Inc., based in Santa Fe Springs, California, was ordered by a federal judge to pay more than $1.5 million to surving family members of five victims of a fatal accident that was a violation of OSHA standards. The victims perished while relining a tunnel at the Georgetown, Colorado hydro plant when chemical vapors ignited in the tunnel and blocked their escape.
A report was issued by the U.S. Chemical Safety Board last year that stated that Xcel (the parent company and RPI failed to implement proper procedures for the safe handling of flammable liquids along with the hazards of static discharge. They were also found to not have proper emergency response and rescue or fire prevention procedures in place.
In addition to the settlements made to the victim’s families, the company is required to pay a $100,000 penalty to the Occupational Safety and Health Administration and is placed on probation with OSHA for five years. Should another willful safety lapse happen, the company could be fined up to $2.5 million.
The plea deal approved by the judge on December 19, 2011 dismissed the charges against Phillipe Goutagny and a second company executive. The deal that was struck requires the surviving family members to drop any lawsuits that sought damages against RPI.
This case was a rare example of a corporation being charged criminally for safety violations, and will hopefully serve as a valuable lesson for other companies in regards to employee safety standards and practices.
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