Australian Competition & Consumer Commission v Tyco Australia Pty Ltd ACN 008 399 004 [2000] FCA 1898

Australian Competition & Consumer Commission v Tyco Australia Pty Ltd ACN 008 399 004 [2000] FCA 1898

Consent penalties and restraining orders approved as appropriate for the applicants' proven and admitted contraventions of s 45 of the Trade Practices Act 1974 (Cth) involving anti-competitive arrangements in fire sprinkler and fire alarm installation markets in Queensland and Northern Territory; penalties reflect varying degrees of involvement of corporate respondents and individual directors.

Parties
Applicant: Australian Competition and Consumer Commission; First Respondent: Tyco Australia Pty Ltd (formerly Wormald Australia Pty Ltd) T/as Wormald Fire Systems; Second Respondent: Grinnell Asia Pacific Pty Limited T/as O'Donnell Griffin; Third Respondent: FFE Building Services Ltd (formerly Chubb Building Services Ltd) (formerly James Hardie Building Services P/L) T/as Fire Fighting Enterprises; Fourth Respondent: Patrick Fire Protection Pty Ltd; Fifth Respondent: Independent Fire Sprinklers Pty Ltd; Sixth Respondent: Independent Fire Alarms Pty Ltd; Seventh Respondent: Allfire Systems Pty Ltd; Eighth Respondent: The Asset Group (Brisbane) Pty Ltd (formerly Asset Fire and Security Pty Ltd); Ninth Respondent: Associated Fire Systems Pty Ltd; Tenth Respondent: Enterprise Fire Protection Pty Ltd; Eleventh Respondent: Enterprise Fire Protection Electrics Pty Ltd; Twelfth Respondent: Firevac Pty Ltd; Thirteenth Respondent: Impact Fire Protection Pty Ltd; Fourteenth Respondent: Premier Fire Protection (QLD) Pty Ltd; Fifteenth Respondent: Trident Fire Protection Pty Ltd; Sixteenth Respondent: Sensor Systems (Aust) Pty Ltd; Seventeenth Respondent: F & H Pty Ltd (formerly Matthews Fire Alarm Pty Ltd); Eighteenth Respondent: Burmess Pty Ltd T/as BEI Services; Nineteenth Respondent: Richard McCormack; Twentieth Respondent: Kenneth Edwin Waller; Twenty First Respondent: Kevin Fisher; Twenty Second Respondent: Matthew Sproule; Twenty Third Respondent: Terence Michael McDonald; Twenty Fourth Respondent: Raymond Edward King; Twenty Fifth Respondent: Michael John Lewis; Twenty Sixth Respondent: David James Crosby; Twenty Seventh Respondent: Trevor Patrick; Twenty Eighth Respondent: Derek Cooper; Twenty Ninth Respondent: Alexander Robert Thomson; Thirtieth Respondent: Gordon Edmund Day; Thirty First Respondent: Allan Geoffrey Murrell; Thirty Second Respondent: Kerry John Moulds; Thirty Third Respondent: Kevyn Raymond Allen; Thirty Fourth Respondent: John Edmund Barney; Thirty Fifth Respondent: Brian Geoffrey Davies; Thirty Sixth Respondent: David Wellmand Douyere; Thirty Seventh Respondent: David William Kemp; Thirty Eighth Respondent: Leslie John Bailey; Thirty Ninth Respondent: Edward Peter Golemba; Fortieth Respondent: Michael Wild; Forty First Respondent: Steven Walter Spurr; Forty Second Respondent: Clint Lawrence Prickett; Forty Third Respondent: Ian James Taylor; Forty Fourth Respondent: William John Lynch; Forty Fifth Respondent: Brian Graham Starkey; Forty Sixth Respondent: Kenneth Brian Thomson; Forty Seventh Respondent: Eon William Radley; Forty Eighth Respondent: Gregory John Bourke; Forty Ninth Respondent: John Franklin Preece; Fiftieth Respondent: Roy Ernest Tesch; Fifty First Respondent: Dennis Brett; Fifty Second Respondent: Nigel Stephen Rehbock; Fifty Third Respondent: Kenneth Norman Rose; Fifty Fourth Respondent: Noel Anthony Meyer; Fifty Fifth Respondent: William Francis Sheehan; Fifty Sixth Respondent: Alan John Blundell; Fifty Seventh Respondent: Chubb Australia Limited; First Cross Claimant: Chubb Australia Limited; First Cross Respondent: Dietool (WA) Pty Limited; Second Cross Respondent: James Hardie Industries Limited
Jurisdiction
Australia
Judgment Date
15 December 2000
Procedural Posture
Civil / Final Orders and Reasons for Judgment
Outcome
Orders made by consent imposing penalties, restraining orders, injunctive relief, cost orders, and noting undertakings for trade practices compliance training.
Legal Topics
Cartel Conduct, Penalties, Injunctive Relief, Undertakings, Trade Practices Act S 45, Joint Submissions
Competition Law Cartel Conduct Penalties Injunctive Relief Undertakings Trade Practices Act S 45 Joint Submissions

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Parties

Australian Competition and Consumer Commission

Applicant

Tyco Australia Pty Ltd (formerly Wormald Australia Pty Ltd) T/as Wormald Fire Systems

First Respondent

Grinnell Asia Pacific Pty Limited T/as O'Donnell Griffin

Second Respondent

FFE Building Services Ltd (formerly Chubb Building Services Ltd) (formerly James Hardie Building Services P/L) T/as Fire Fighting Enterprises

Third Respondent

Patrick Fire Protection Pty Ltd

Fourth Respondent

Independent Fire Sprinklers Pty Ltd

Fifth Respondent

Independent Fire Alarms Pty Ltd

Sixth Respondent

Allfire Systems Pty Ltd

Seventh Respondent

The Asset Group (Brisbane) Pty Ltd (formerly Asset Fire and Security Pty Ltd)

Eighth Respondent

Associated Fire Systems Pty Ltd

Ninth Respondent

Enterprise Fire Protection Pty Ltd

Tenth Respondent

Enterprise Fire Protection Electrics Pty Ltd

Eleventh Respondent

Firevac Pty Ltd

Twelfth Respondent

Impact Fire Protection Pty Ltd

Thirteenth Respondent

Premier Fire Protection (QLD) Pty Ltd

Fourteenth Respondent

Trident Fire Protection Pty Ltd

Fifteenth Respondent

Sensor Systems (Aust) Pty Ltd

Sixteenth Respondent

F & H Pty Ltd (formerly Matthews Fire Alarm Pty Ltd)

Seventeenth Respondent

Burmess Pty Ltd T/as BEI Services

Eighteenth Respondent

Richard McCormack

Nineteenth Respondent

Kenneth Edwin Waller

Twentieth Respondent

Kevin Fisher

Twenty First Respondent

Matthew Sproule

Twenty Second Respondent

Terence Michael McDonald

Twenty Third Respondent

Raymond Edward King

Twenty Fourth Respondent

Michael John Lewis

Twenty Fifth Respondent

David James Crosby

Twenty Sixth Respondent

Trevor Patrick

Twenty Seventh Respondent

Derek Cooper

Twenty Eighth Respondent

Alexander Robert Thomson

Twenty Ninth Respondent

Gordon Edmund Day

Thirtieth Respondent

Allan Geoffrey Murrell

Thirty First Respondent

Kerry John Moulds

Thirty Second Respondent

Kevyn Raymond Allen

Thirty Third Respondent

John Edmund Barney

Thirty Fourth Respondent

Brian Geoffrey Davies

Thirty Fifth Respondent

David Wellmand Douyere

Thirty Sixth Respondent

David William Kemp

Thirty Seventh Respondent

Leslie John Bailey

Thirty Eighth Respondent

Edward Peter Golemba

Thirty Ninth Respondent

Michael Wild

Fortieth Respondent

Steven Walter Spurr

Forty First Respondent

Clint Lawrence Prickett

Forty Second Respondent

Ian James Taylor

Forty Third Respondent

William John Lynch

Forty Fourth Respondent

Brian Graham Starkey

Forty Fifth Respondent

Kenneth Brian Thomson

Forty Sixth Respondent

Eon William Radley

Forty Seventh Respondent

Gregory John Bourke

Forty Eighth Respondent

John Franklin Preece

Forty Ninth Respondent

Roy Ernest Tesch

Fiftieth Respondent

Dennis Brett

Fifty First Respondent

Nigel Stephen Rehbock

Fifty Second Respondent

Kenneth Norman Rose

Fifty Third Respondent

Noel Anthony Meyer

Fifty Fourth Respondent

William Francis Sheehan

Fifty Fifth Respondent

Alan John Blundell

Fifty Sixth Respondent

Chubb Australia Limited

Fifty Seventh Respondent

Chubb Australia Limited

First Cross Claimant

Dietool (WA) Pty Limited

First Cross Respondent

James Hardie Industries Limited

Second Cross Respondent

Procedural Posture

Civil / Final Orders and Reasons for Judgment

Legal Issues

  1. 1 Whether conduct contravened s 45 of the Trade Practices Act 1974 (Cth)
  2. 2 Appropriate penalty and injunctive relief for cartel conduct affecting fire sprinkler and fire alarm installation markets

Ratio Decidendi

Consent penalties and restraining orders approved as appropriate for the applicants' proven and admitted contraventions of s 45 of the Trade Practices Act 1974 (Cth) involving anti-competitive arrangements in fire sprinkler and fire alarm installation markets in Queensland and Northern Territory; penalties reflect varying degrees of involvement of corporate respondents and individual directors.

Court Disposition

Orders made by consent imposing penalties, restraining orders, injunctive relief, cost orders, and noting undertakings for trade practices compliance training.

Orders

  • Penalty of $70,000 imposed upon Michael John Lewis (Twenty-Fifth Respondent), paid to the Commonwealth of Australia in instalments per order.
  • Penalty of $300,000 imposed upon Trident Fire Protection Pty Ltd (Fifteenth Respondent), paid in instalments per order.