The NWT Territorial Court has fined a heavy equipment company $200,000 related to the death of one of its workers at the Gahcho Kué diamond mine.
According to court documents, Max Paczulla, a 27-year-old heavy duty mechanic with SMS Equipment Inc, was working in the mine’s truck shop fixing a hydraulic leak on a Komatsu 830E haul truck on September 1, 2022, when he sustained fatal injuries in an incident involving a pinch point.
An obituary published online describes Paczulla as “a ferocious reader, brilliant conversationalist and avid outdoorsman” with “an absolutely wicked sense of humour.”
“He was kind, generous and didn’t hesitate to help or lend a hand. He was respected and loved by all who knew him,” it says.
Paczulla’s partner of more than six years, Rebecca Brandy, described him as the “funniest, most affectionate, larger than life person,” in a victim impact statement filed with the court. She said he was also extremely intelligent, hardworking, witty and passionate about his interests, which included hunting, skiing and mountain biking.
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“His death was shocking, earthshattering and upended my entire life,” she wrote.
“I will miss him for the rest of my life.”
Brandy said she was angry that Paczulla’s death was the result of unsafe working conditions. She added the nearly two years it had taken to hold those responsible to account had only amplified her grief and anger.
SMS pleads guilty to one charge
At the time of the incident, SMS, which operates in Canada and Alaska, was providing heavy equipment maintenance and repair services at Gahcho Kué. The company said it has roughly 1,000 employees in its mining division and around 40 were working at the NWT diamond mine.
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The territory’s Workers’ Safety and Compensation Commission, or WSCC, initially filed seven charges against SMS in September 2023, under the NWT’s Safety Act and Mine Health Safety Act, related to Paczulla’s death.
In Territorial Court in Yellowknife on Friday, SMS pleaded guilty to one count of failing to maintain the truck shop at Gahcho Kué in such a manner that Paczulla’s life was not likely to be endangered. The Crown stayed the remaining charges.
The offence carries a maximum fine of $500,000, up to one year in jail or both.
On Friday, both the Crown and defence argued SMS should be fined $200,000.
‘This should never happen again’
Prosecutor Larry Reynolds said the agreement came after months of negotiation. He said it was important the fine send a message that no matter how large a company or how important its projects that “we can’t lose the little people.”
“This should never happen again, not just with this company but any major company,” he said.
He added the fine needed to strike a balance between being “more than a slap on the wrist but less than a fatal blow.”
Defence lawyer Chris Spasoff said his client had co-operated with WSCC’s investigation and pleaded guilty, avoiding a potentially lengthy and complicated trial despite what he argued was “a very viable” defence. He added that since Paczulla’s death, SMS had taken steps to improve safety information sharing with De Beers, which partially owns Gahcho Kué, and had amended its lockout procedures.
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“This is a company that does get it, takes its responsibilities very seriously,” he said.
Justice Gary Magee accepted the joint sentencing submission.
He said while he was “somewhat concerned” he had not been provided information on how the fine would affect SMS, it was similar to fines in other cases and would not bring the administration of justice into disrepute.
