Commerce Commission v Lodge Real Estate Ltd

PUBLICATION OR BROADCAST OF ANY PART OF THIS JUDGMENT IN ANY MEDIUM IS PROHIBITED FOR TWO WORKING DAYS AFTER DELIVERY

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE

CIV-2015-404-003045 [2017] NZHC 1497

UNDER  Sections 27, 30 and 80 of the Commerce

Act 1986

BETWEEN  COMMERCE COMMISSION

Plaintiff

AND  LODGE REAL ESTATE LIMITED

First Defendant

cont …/2

Hearing:                   12-15, 18-22, 27-28 September 2017

Appearances:           J C L Dixon QC, L C A Farmer and A L McConachy for Plaintiff

L J Taylor QC and M A Cavanaugh for First and Seventh Defendants

D H McLellan QC, M S Anderson and J H Whitehead for Third and Sixth Defendants

Judgment:                2 November 2017

JUDGMENT OF JAGOSE J

This judgment is delivered by me on 2 November 2017 at 4.30 pm

pursuant to r 11.5 of the High Court Rules.

Counsel/Solicitors:

.....................................................

Registrar / Deputy Registrar

John Dixon QC, Auckland (Plaintiff) Meredith Connell, Auckland (Plaintiff)

Lesley Taylor QC, Wellington (1st and 7th Defendants) McElroys, Auckland (1st and 7th Defendants)

Daniel McLellan QC, Auckland (3rd and 6th Defendants) Wotton & Kearney, Auckland (3rd and 6th Defendants)

COMMERCE COMMISSION v LODGE REAL ESTATE LTD & ORS [2017] NZHC 1497 [2 November 2017]

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LUGTON’S LIMITED

Second Defendant

MONARCH REAL ESTATE LIMITED
Third Defendant

ONLINE REALTY LIMITED
Fourth Defendant

SUCCESS REALTY LIMITED
Fifth Defendant

BRIAN KING
Sixth Defendant

JEREMY O’ROURKE
Seventh Defendant

Summary ...................................................................................................................[1]

The pleadings..........................................................................................................[12]

The law, in outline ..................................................................................................[17]

Facts.........................................................................................................................[28] Hamilton real estate market .................................................................................[28]

Trade Me’s new pricing structure for real estate agencies ...................................[33] Hamilton real estate agencies learn of new Trade Me pricing structure ..............[46]

—Lodge (NZRN)  [47]
—Lugton’s  [63]
—Monarch (Harcourts)  [66]
—Online (Ray White)  [71]
—Success (Bayleys)  [75]

Meeting of Hamilton real estate agencies on 30 September 2013 .......................[83]
—arranging the meeting	[83]
—attending the meeting	[92]
—after the meeting	[135]
—arranging the meeting	[139]
—attending the meeting	[143]
—after the meeting	[145]
Hamilton real estate agencies’ actions in the wake of the meeting(s)................[146]
—Lodge	[146]
—Lugton’s	[153]
—Monarch	[155]
—Online	[163]
—Success	[165]

 

—realestate.co.nz  [81]

Meeting of Hamilton real estate agencies on 16 October 2013 .........................[139]

Ultimate position ..................................................................................................[173]

Discussion..............................................................................................................[175]

Entering a “contract, arrangement, or understanding”? .....................................[175]
Giving effect? .....................................................................................................[194]
“In competition with each other”? .....................................................................[201]

“Fixing, controlling, or maintaining, of the price”?...........................................[209]

Sundry matters .....................................................................................................[235]

Mr King’s and Mr O’Rourke’s status.................................................................[235]
Expert evidence ..................................................................................................[236]
Admissibility objections.....................................................................................[239]

Result.....................................................................................................................[253]

Next steps ..............................................................................................................[254]

Costs...................................................................................................................[254] Interim confidentiality orders.............................................................................[255]
Embargo on publication .....................................................................................[257]

Summary

[1]                 Trade Me facilitates online financial transactions between buyers and sellers, for a fee charged to sellers. Trade Me Property, which provides advertising aspects of that service to buyers and sellers of real estate by publishing property listings, extended that more limited service to real estate agencies. Real estate agencies were charged a capped subscription fee, entitling publication of any number of real estate listings on Trade Me. The agencies typically absorbed the cost of Trade Me publication.

[2]                 In late 2013, Trade Me notified a change to…