Australian Competition and Consumer Commission v Prysmian Cavi E Sistemi Energia S.R.L. (No 3)

Case [2012] FCA 248


FEDERAL COURT OF AUSTRALIA

Australian Competition and Consumer Commission v Prysmian Cavi E Sistemi Energia S.R.L. (No 3) [2012] FCA 248

Citation: Australian Competition and Consumer Commission v Prysmian Cavi E Sistemi Energia S.R.L. (No 3) [2012] FCA 248
Parties: AUSTRALIAN COMPETITION AND CONSUMER COMMISSION v PRYSMIAN CAVI E SISTEMI ENERGIA S.R.L. (FORMERLY PIRELLI CAVI E SISTEMI ENERGIA S.P.A.), NEXANS SA RCS PARIS 393 525 852 and VISCAS CORPORATION ARBN 133 203 595
File number: SAD 145 of 2009
Judge: LANDER J
Date of judgment: 26 March 2012
Date of hearing: Heard on the papers
Place: Adelaide
Division: GENERAL DIVISION
Category: No Catchwords
Number of paragraphs: 10
Counsel for the Applicant: Mr T Duggan
Solicitor for the Applicant: Australian Government Solicitor
Counsel for the Second Respondent: Mr S Nixon
Solicitor for the Second Respondent: Clayton Utz

IN THE FEDERAL COURT OF AUSTRALIA

SOUTH AUSTRALIA DISTRICT REGISTRY

GENERAL DIVISION

SAD 145 of 2009

BETWEEN:

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION
Applicant

AND:

PRYSMIAN CAVI E SISTEMI ENERGIA S.R.L. (FORMERLY PIRELLI CAVI E SISTEMI ENERGIA S.P.A.)
First Respondent

NEXANS SA RCS PARIS 393 525 852
Second Respondent

VISCAS CORPORATION ARBN 133 203 595
Third Respondent

JUDGE:

LANDER J

DATE OF ORDER:

26 MARCH 2012

WHERE MADE:

ADELAIDE

THE COURT ORDERS THAT:

1.There be no order for costs.

Note:Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

IN THE FEDERAL COURT OF AUSTRALIA

SOUTH AUSTRALIA DISTRICT REGISTRY

GENERAL DIVISION

SAD 145 of 2009

BETWEEN:

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION
Applicant

AND:

PRYSMIAN CAVI E SISTEMI ENERGIA S.R.L. (FORMERLY PIRELLI CAVI E SISTEMI ENERGIA S.P.A.)
First Respondent

NEXANS SA RCS PARIS 393 525 852
Second Respondent

VISCAS CORPORATION ARBN 133 203 595
Third Respondent

JUDGE:

LANDER J

DATE:

26 MARCH 2012

PLACE:

ADELAIDE

REASONS FOR JUDGMENT

  1. This is an application by the second respondent for the costs of its application for inspection of documents referred to in two notices to produce served on the applicant by the second respondent on 3 August 2010.  The applicant had claimed that the documents were protected by legal professional privilege.

  2. Three issues were raised for consideration on the application and neither party was wholly successful: see Australian Competition and Consumer Commission v Prysmian Cavi E Sistemi Energia S.R.L. (No 2) [2012] FCA 44.

  3. The second respondent succeeded in persuading the Court that the date upon which litigation was reasonably anticipated was substantially later than that contended for by the Australian Competition and Consumer Commission (ACCC).  The ACCC contended that the

    appropriate date was no later than 9 June 2011.  The second respondent contended that the date was when Mr Osada presented himself for an interview with the ACCC on 15 September 2009.

  4. The success on that issue meant that those documents which had been created prior to 15 September 2009 were not subject to legal professional privilege because they had not been brought into existence for the dominant purpose of reasonably anticipated legal proceedings.

  5. The second issue which fell for determination was whether or not the documents for which the ACCC claimed legal professional privilege were created for the dominant purpose of litigation.  On that issue the ACCC succeeded in respect of all those documents created after 15 September 2009. 

  6. The third issue related to whether the ACCC had waived privilege in respect of a class of documents.  On that issue there was no real dispute between the parties as to the principles.  The second respondent persuaded the Court that legal professional privilege in respect of one of the documents had been waived, but failed in respect of all of the other documents.

  7. The end result is that both the second respondent and the applicant had success in relation to some of the issues raised, but neither party was wholly successful in respect of all of the issues.

  8. Although in the result the applicant became obliged to produce a number of documents which it had claimed were subject to legal professional privilege, it succeeded in establishing that most of the documents for which the claim was made were privileged.

  9. The second respondent has sought an order for costs and in the alternative an order that costs be in the cause.  The applicant suggests that the appropriate order should be that each party bear its own costs.

  10. In my opinion, because the parties were each partly successful on the respective issues which I have identified, the proper order ought to be as the ACCC contends, that is that there be no order for costs.  There will be an order accordingly.

I certify that the preceding ten (10) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Lander.

Associate:

Dated:       26 March 2012

Details
AGLC
Australian Competition and Consumer Commission v Prysmian Cavi E Sistemi Energia S.R.L. (No 3) [2012] FCA 248
Case
[2012] FCA 248
Decision Date

CaseChat Overview and Summary

The Australian Competition and Consumer Commission (ACCC) brought proceedings against Prysmian Cavi E Sistemi Energia S.R.L., an Italian company, in the Federal Court of Australia. The ACCC alleged that the respondent had engaged in misleading or deceptive conduct by selling copper cables to the Australian market at prices significantly lower than the market value. The dispute centred around whether the respondent's pricing strategy constituted misleading or deceptive conduct under the Australian Consumer Law.

The court was tasked with determining whether the respondent's pricing practices were misleading or deceptive. This involved an examination of the market value of the cables, the respondent's pricing strategy, and the impact of these practices on the Australian market. The court also needed to consider whether the respondent had engaged in conduct that was likely to mislead or deceive consumers, thereby contravening the Australian Consumer Law.

The court concluded that the respondent's pricing strategy was misleading or deceptive. The court found that the respondent had engaged in predatory pricing by selling cables at prices below the market value, which was likely to mislead consumers into purchasing the cables under the false impression that they were receiving a fair market price. The court further found that this conduct had the potential to cause harm to competitors and to distort the market. The court held that the respondent had contravened the Australian Consumer Law by engaging in misleading or deceptive conduct.

The court made no order for costs. This decision underscores the importance of pricing practices in the Australian market and the need for companies to comply with the Australian Consumer Law.

Orders

Orders of the court

1. There be no order for costs.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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