Trade Practices Commission v. Simsmetal Ltd & Ors [1994] FCA 902

JUDGMENT No. wmne2Q2eul 24...

IN THE FEDERAL COURT

OF AUSTRALIA

VICTORIA DISTRICT REGISTRY GENERAL DIVISION

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NO. VG413 OF 1992 BETWEE N: TRADE PRACTICES COMMISSION Applicant and SIMSMETAL LIMITED First Respondent and

NORMET INDUSTRIES NOMINEES PTY. LTD.

Second Respondent and PETER WRIGHT Third Respondent and LINDSAY DAVIS Fourth Respondent and PAUL JAMES SAILAH Fifth Respondent and MICHAEL BAKER

Sixth Respondent

CORAM: LEE J. : 9 NOVEMBER 1994 PLACE: MELBOURNE

EMPORE R: INS FOR MENT

The applicant, the Trade Practices Commission ("the T.P.C."), on behalf of the Commonwealth, instituted proceedings under s.76 of the Trade Practices Act 1974 ("the Act") for the recovery of pecuniary penalties for alleged contraventions of sub-paras.45(2)(a)(i), 45(2)(a)(ii) and 45(2)(b)(ii) of the Act by the corporate respondents and the third to sixth respondents as natural persons who are either employees or officers of the corporate respondents. The T.P.C. also applies for injunctive relief under s.80 of the Act to restrain future contraventions of the Act by the respondents

for a period of three years.

The proceedings arise out of arrangements between the first respondent, Simsmetal Limited ("Simsmetal"), and the second respondent, Normet Industries Nominees Pty Ltd ("Normet") (together, the "corporate respondents") who carried on business as metal merchants and recyclers of scrap metal in Victoria. The corporate respondents were in competition with each other for the purchase of ferrous scrap metal, including metal from derelict car bodies throughout Victoria and the border regions of New South Wales and Victoria. From August to September 1991, in contravention of sub-paras.45(2)(a)(ii) and 45(2)(b)(ii) respectively, the corporate respondents arrived at and gave effect to a price fixing and market sharing arrangement which related to the purchase of derelict