COMMERCE COMMISSION v STEEL & TUBE HOLDINGS LTD [2019] NZHC 2098

COMMERCE COMMISSION v STEEL & TUBE HOLDINGS LTD [2019] NZHC 2098

s45 could not be relied upon at sentencing to attribute the technical manager's deliberate state of mind to Steel & Tube because the offences under ss10 and 13 were strict liability and state of mind was not necessary to establish guilt; sentencing must assess corporate culpability via Sentencing Act factors and common law attribution where appropriate; on the facts senior management's conduct amounted to gross carelessness justifying a higher starting point than the District Court adopted; the District Court sentence was manifestly inadequate and is replaced with a global fine of NZD 2,009,280 after applying starting point, mitigation and totality adjustments.

Citation
[2019] NZHC 2098
Parties
Appellant/prosecutor: Commerce Commission; Respondent/defendant: Steel & Tube Holdings Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
23 August 2019
Procedural Posture
Appeal Against Sentence Under the Fair Trading Act 1986 / High Court Appeal From District Court Sentencing
Outcome
Appeal allowed; District Court sentence set aside and replaced
Legal Topics
False Representations, Strict Liability Offences, Attribution of State of Mind (s45), Sentencing Principles and Aggravating/mitigating Factors, Totality Principle, Fines
Consumer Protection Criminal Law Corporate Liability Regulatory Enforcement Sentencing False Representations Strict Liability Offences Attribution of State of Mind (s45) +3 more

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Parties

Commerce Commission

Appellant/prosecutor

Steel & Tube Holdings Limited

Respondent/defendant

Procedural Posture

Appeal Against Sentence Under the Fair Trading Act 1986 / High Court Appeal From District Court Sentencing

Legal Issues

  1. 1 Whether s45 Fair Trading Act 1986 can be used at sentencing to attribute a servant's state of mind to a corporate offender where state of mind was not required to establish the offence
  2. 2 Whether the District Court sentence was manifestly inadequate
  3. 3 Appropriate assessment of corporate culpability and starting point for fines including application of totality and mitigation discounts

Ratio Decidendi

s45 could not be relied upon at sentencing to attribute the technical manager's deliberate state of mind to Steel & Tube because the offences under ss10 and 13 were strict liability and state of mind was not necessary to establish guilt; sentencing must assess corporate culpability via Sentencing Act factors and common law attribution where appropriate; on the facts senior management's conduct amounted to gross carelessness justifying a higher starting point than the District Court adopted; the District Court sentence was manifestly inadequate and is replaced with a global fine of NZD 2,009,280 after applying starting point, mitigation and totality adjustments.

Court Disposition

Appeal allowed; District Court sentence set aside and replaced

Orders

  • Set aside District Court fines and sentence
  • Impose substituted global fine of NZD 2,009,280 on Steel & Tube Holdings Ltd