## Facts

- Granite Construction Co., a corporate construction contractor, worked on the Helms Pumped Storage Project, a hydroelectric facility in Fresno County, California.
- On January 23, 1981, a catastrophic accident occurred at the worksite, resulting in the deaths of seven construction workers.
- The Fresno County Grand Jury received evidence about the incident and returned an indictment charging Granite, as a corporation, with manslaughter.
- Granite argued that California law does not permit prosecuting a corporation for manslaughter and sought to stop the criminal case before trial.
- Granite petitioned the Court of Appeal for extraordinary relief (writ of prohibition and/or mandate) to prevent the superior court from proceeding on the indictment.

## Issues

1. Whether a corporation may be prosecuted for manslaughter under California Penal Code § 192, or whether corporations are implicitly exempt.
2. Whether the Penal Code’s general definitions and liability provisions demonstrate legislative intent to treat corporations as criminal “persons” for serious offenses, including homicide-type crimes.

## Decision

- The Court of Appeal denied the petition for writ relief and allowed the prosecution to proceed.
- The court held that corporations may be prosecuted for manslaughter under existing California law.
- The court treated the question as one of legislative intent determined primarily from the Penal Code’s text and structure.
- It rejected the claim that manslaughter contains an implied limitation to natural persons or that the perceived novelty of the charge justified a judicially created exemption.

## Legal Principles

- Under Penal Code § 7, “person” includes a corporation, as well as a natural person.
- Under Penal Code §§ 26 and 27, any “person” is capable of committing crimes and liable for punishment unless a specific statutory exception applies; the provisions are framed in broad, unqualified terms.
- Because the Penal Code generally applies to corporations, a corporation may be prosecuted for offenses defined in the Code unless the Legislature expressly excludes corporate defendants.
- Penal Code § 192 contains no express exemption for corporations; absent such limiting language, the offense may be charged against a corporate defendant.
- California recognizes corporate criminal liability, including liability based on the acts of corporate agents and employees, and has treated corporations as proper criminal defendants for decades (including for non-regulatory offenses).
- Courts will not create an implied exemption from criminal statutes based on policy objections, “surprise,” or arguments that the Legislature did not anticipate a particular prosecution; changes to the scope of liability are for the Legislature where statutory language is inclusive.

## Conclusion

The Court of Appeal held that California’s Penal Code treats corporations as “persons” subject to criminal prosecution and, because Penal Code § 192 does not exclude corporate defendants, a corporation may be indicted and tried for manslaughter based on conduct attributable to its agents and employees; accordingly, the court denied extraordinary relief and permitted the manslaughter case against Granite to go forward.


Granite Constr. Co. v. Superior Ct., 149 Cal. App. 3d 465 (Ct. App. 1983)