Commerce Commission v Steel & Tube Holdings Limited

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE

CRI 2018-404-368

[2019] NZHC 2209

IN THE MATTER of concurrent appeals against a decision of the District court at Auckland

BETWEEN

COMMERCE COMMISSION

Appellant

AND

STEEL & TUBE HOLDINGS LIMITED

Respondent

Hearing: On the papers

Counsel:

JCL Dixon QC, AMM McClintock & B J Thompson for Appellant M Heron and AMW Stewart for Respondent

Judgment:

5 September 2019

SUPPLEMENTARY JUDGMENT OF DUFFY J

This judgment is delivered by me on 5 September 2019 at 12:30 pm pursuant to r 11.5 of the High Court Rules.

.....................................................
Registrar / Deputy Registrar

Solicitors/Counsel:
Matthews Law, Auckland Michael Heron QC, Auckland Meredith Connell, Auckland

COMMERCE COMMISSION v STEEL & TUBE HOLDINGS LTD [2019] NZHC 2209 [5 September 2019]

[1] In my judgment of 23 August 2019, I held that the sentences imposed in the District Court should be set aside on the ground they were manifestly inadequate.1

[2] I gave reasons which identified the fines to be imposed for the offences for which the maximum sentence is $200,000 and the same for the offences for which the maximum sentence is $600,000.2 I did not however relate the individual fines to the specific offences because the necessary information was not before me. The Commission has now supplied me with the necessary information to complete that task.

[3] The offences listed in the attached table are the individual fines imposed for each offence.

Duffy J

1 Commerce Commission v Steel & Tube Holdings Ltd [2019] NZHC 2098.
2 At [119].

CRN

Date range

FTA

penalty

Compliance Representations

1 17004502002 1-Mar-12 – 30-Jun-12 s 10 $43,680

2 17004502000 1-Jul-12 – 31-Oct-12 s 10 $43,680

3 17004501999 1-Nov-12 – 28-Feb-13 s 10 $43,680

4 17004501998 1-Mar-13 – 30-Jun-13 s 10 $43,680

5 17004501997 1-Jul-13 – 31-Oct-13 s 10 $43,680

6 17004501996 1-Nov-13 – 28–Feb-14 s 10 $43,680

7 17004501995 1-Mar-14 – 16-Jun-14 s 10 $43,680

8 17004501994 17-Jun-14 – 31-Oct-14 s 10 $131,040

9 17004501993 1-Nov-14 – 28-Feb-15 s 10 $131,040

10 17004501992 1-Mar-15 – 30-Jun-15 s 10 $131,040

11 17004501991 1-Jul-15 – 31-Oct-15 s 10 $131,040

12 17004501990 1-Nov-15 – 6-Apr-16 s 10 $131,040

Holmes Representations

13 17004501989 1-Mar-12 – 31-Aug-12 s 13(e) $43,680

14 17004501987 1-Sep-12 – 28-Feb-13 s 13(e) $43,680

15 17004501986 1-Mar-13 – 31-Aug-13 s 13(e) $43,680

16 17004501985 1-Sep-13 – 28-Feb-14 s 13(e) $43,680

17 17004501984 1-Mar-14 – 16-Jun-14 s 13(e) $43,680

18 17004501983 17-Jun-14 – 31-Dec-14 s 13(e) $131,040

19 17004501982 1-Jan-15 – 30-Jun-15 s 13(e) $131,040

20 17004501981 1-Jul-15 – 31-Dec-15 s 13(e) $131,040

21 17004502008 1-Jan-16 – 6-Apr-16 s 13(e) $131,040

Independent Testing and Certification Representations

22 17004502011 20-May-13 – 16-Jun-14 s 13(e) $43,680

23 17004502010 17-Jun-14 – 16-May-15 s 13(e) $131,040

24 17004502009 17-May-15 – 6-Apr-16 s 13(e) $131,040

CaseChat Overview and Summary

In the case of Commerce Commission v Steel & Tube Holdings Limited, the Commerce Commission appealed the sentences imposed on Steel & Tube Holdings Limited by the Auckland District Court, arguing that the fines were manifestly inadequate. The High Court of New Zealand, Auckland Registry, reviewed the matter on the papers and delivered a supplementary judgment on 5 September 2019. The court was required to determine whether the fines imposed were appropriate and whether they served as a sufficient deterrent, taking into account the nature and extent of the company's breaches of the Fair Trading Act.

The court noted that the fines imposed by the District Court were manifestly inadequate and did not serve as a sufficient deterrent or punishment for the company's breaches. Duffy J, who delivered the judgment, highlighted that the penalties for the offences were meant to be substantial and should reflect the seriousness of the breaches. The court considered the nature and extent of the breaches, the company's history of non-compliance, and the need for deterrence and punishment. After reviewing the information provided by the Commission, the court assigned individual fines to the specific offences committed by the company.

Ultimately, the High Court set aside the sentences imposed by the District Court and ordered the company to pay specific fines for each offence committed. The court emphasised the importance of appropriate penalties in upholding the rule of law and ensuring compliance with legislation.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

Hearing:	On the papers
Counsel:	JCL Dixon QC, AMM McClintock & B J Thompson for Appellant M Heron and AMW Stewart for Respondent
Judgment:	5 September 2019

CRN	Date range	FTA	penalty
Compliance Representations
1	17004502002	1-Mar-12 – 30-Jun-12	s 10	$43,680
2	17004502000	1-Jul-12 – 31-Oct-12	s 10	$43,680
3	17004501999	1-Nov-12 – 28-Feb-13	s 10	$43,680
4	17004501998	1-Mar-13 – 30-Jun-13	s 10	$43,680
5	17004501997	1-Jul-13 – 31-Oct-13	s 10	$43,680
6	17004501996	1-Nov-13 – 28–Feb-14	s 10	$43,680
7	17004501995	1-Mar-14 – 16-Jun-14	s 10	$43,680
8	17004501994	17-Jun-14 – 31-Oct-14	s 10	$131,040
9	17004501993	1-Nov-14 – 28-Feb-15	s 10	$131,040
10	17004501992	1-Mar-15 – 30-Jun-15	s 10	$131,040
11	17004501991	1-Jul-15 – 31-Oct-15	s 10	$131,040
12	17004501990	1-Nov-15 – 6-Apr-16	s 10	$131,040
Holmes Representations
13	17004501989	1-Mar-12 – 31-Aug-12	s 13(e)	$43,680
14	17004501987	1-Sep-12 – 28-Feb-13	s 13(e)	$43,680
15	17004501986	1-Mar-13 – 31-Aug-13	s 13(e)	$43,680
16	17004501985	1-Sep-13 – 28-Feb-14	s 13(e)	$43,680
17	17004501984	1-Mar-14 – 16-Jun-14	s 13(e)	$43,680
18	17004501983	17-Jun-14 – 31-Dec-14	s 13(e)	$131,040
19	17004501982	1-Jan-15 – 30-Jun-15	s 13(e)	$131,040
20	17004501981	1-Jul-15 – 31-Dec-15	s 13(e)	$131,040
21	17004502008	1-Jan-16 – 6-Apr-16	s 13(e)	$131,040
Independent Testing and Certification Representations
22	17004502011	20-May-13 – 16-Jun-14	s 13(e)	$43,680
23	17004502010	17-Jun-14 – 16-May-15	s 13(e)	$131,040
24	17004502009	17-May-15 – 6-Apr-16	s 13(e)	$131,040