COMMERCE COMMISSION v PROPERTY BROKERS LTD [2017] NZHC 681

COMMERCE COMMISSION v PROPERTY BROKERS LTD [2017] NZHC 681

The Court found the defendants contravened s27; selected a higher starting point for Property Brokers due to its leading role and market share, applied a 25–30% discount for cooperation, lack of deliberate knowledge and early admission, and imposed pecuniary penalties of $1.45 million on Property Brokers and $50,000 on Mr Mordaunt as within the appropriate range and not disproportionate in aggregate.

Citation
[2017] NZCCLR 14
Parties
Plaintiff: Commerce Commission; First Defendant: Property Brokers Limited; Second Defendant: Manawatu (1994) Limited; Third Defendant: Timothy John Mordaunt
Court
High Court
Jurisdiction
New Zealand
Judgment Date
10 April 2017
Procedural Posture
Commerce Act Proceedings Pecuniary Penalties for Price Fixing / Judgment (penalty Assessment)
Outcome
Declaration of contravention and imposition of pecuniary penalties
Legal Topics
Price Fixing, Cartel Behaviour, Pecuniary Penalties, Section 27 Commerce Act, Section 80 Commerce Act
Competition Law Antitrust Commercial Law Civil Penalties Price Fixing Cartel Behaviour Pecuniary Penalties Section 27 Commerce Act +1 more

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Parties

Commerce Commission

Plaintiff

Property Brokers Limited

First Defendant

Manawatu (1994) Limited

Second Defendant

Timothy John Mordaunt

Third Defendant

Procedural Posture

Commerce Act Proceedings Pecuniary Penalties for Price Fixing / Judgment (penalty Assessment)

Legal Issues

  1. 1 Whether the defendants contravened s27 of the Commerce Act 1986 by entering into and giving effect to a price-fixing agreement
  2. 2 Appropriate starting point and adjustments for pecuniary penalties under s80 for corporate and individual breaches
  3. 3 Whether the director (Mr Mordaunt) should be personally penalised and the appropriate amount

Ratio Decidendi

The Court found the defendants contravened s27; selected a higher starting point for Property Brokers due to its leading role and market share, applied a 25–30% discount for cooperation, lack of deliberate knowledge and early admission, and imposed pecuniary penalties of $1.45 million on Property Brokers and $50,000 on Mr Mordaunt as within the appropriate range and not disproportionate in aggregate.

Court Disposition

Declaration of contravention and imposition of pecuniary penalties

Orders

  • Declaration that the conduct of Property Brokers Limited and Mr Timothy John Mordaunt contravened s27 of the Commerce Act 1986
  • Pecuniary penalty of $1,450,000 imposed on Property Brokers Limited pursuant to s80(1)