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Sheffield lawyers secure £500,000 judgement for Outokumpu

1 October 2008

Stainless steel giant Outokumpu Stainless UK Limited has today (Wednesday, October 1) been awarded more than £500,000 compensation plus costs following a major civil hearing.

The Sheffield based stainless steel manufacturer was awarded the sum after thieves stole scrap metal from its site on Fife Street, Wincobank over a period of approximately one year.

A former security guard and a driver from sub-contractor, Hobson Metals UK Limited, were found guilty of conspiracy to steal and jailed for a combined seven years at a high profile criminal trial back in June.  The civil case was to consider Outokumpu Stainless' claim to recover their losses from the guard, the driver and Hobson Metals.  Hobson Metals had made a payment to settle out of court shortly before trial.

Michael Peacock and Rachel Crookes from the Sheffield office of DLA Piper acted successfully on behalf of Outokumpu Stainless in the case, which was heard at a four day civil trial at Leeds High Court.

Michael Peacock, who heads the civil fraud team at DLA Piper, said: "We are delighted with this outcome which has vindicated the determination of Outokumpu to send out a message to an apparently increasing number of individuals looking to profit from the theft of scrap metal. 

"Scrap metal theft is a very serious issue for the manufacturing and metal industries and something highly relevant to a number of businesses in this region. 

"This case shows what can be achieved when victims of fraud, their solicitors and the police join forces and take the fraudsters on to reclaim what is rightfully theirs.

"We have worked very closely with South Yorkshire police in this case. This mutual co-operation has allowed us and the police to make full use of the civil and criminal justice systems to maximise the prospects of a positive outcome in both." 

Martin Pinder, UK Vice President of Human Resources for Outokumpu said: "This result shows that we, as a business, will not tolerate fraud on any level and will use the full extent of the law to ensure that the perpetrators are brought to justice. 

"We took this stand on behalf of all steel manufacturers who, as a group, are committed to stamping out this blight on their businesses."

Leslie Rose, 52, of Pit Row, Elsecar, who pleaded guilty to conspiracy to steal, worked as a security guard at Outokumpu and turned off CCTV cameras to allow his accomplice, Colin Wilson, to drive lorry loads of metal out of the steel works on Fife Street, Wincobank.

Wilson, aged 57, of Halifax Road, Grenoside, who was convicted after a trial, worked for Hobson Metals UK Limited as a driver employed to take scrap from Fife Street to Outokumpu's other site, off Europa Way, Tinsley, where it was melted down.  Instead, he began taking illegal loads to Meadowbank Special Steels, Harrison Street, Rotherham.

Categories: DLA Piper