Canada v. Canada Pipe Co.
T-2044-95
McKeown J.
2/10/95
4 pp.
Sentencing-Canada Pipe Co. pleaded guilty to one count of unlawfully conspiring with another company to lessen, unduly, competition in supply and sale of ductile iron pipe, contrary to Competition Act, s. 45(1)(c)-In agreed statement of fact, counsel have suggested fine of $2,500,000-Penalty under s. 45 fine not exceeding $10,000,000-Sentence should protect public interest in free competition and should serve as general and specific deterrent-Court relying on following factors: (1) s. 45 at core of criminal portion of Act; (2) Company's president, one of highest directing minds of company, entered into agreement on behalf of accused; (3) size of accused and volume of commerce affected (accused's sales for nine-month period totalling $8,000,000, suggested fine representing 30%); (4) suggested fine in line with other recent cases; (5) fine should also reflect cost of Crown's investigation, parties agreeing 20% of proposed fine covers cost of investigation; (6) given international context of conspiracy, fine should be sufficient to deter persons outside country from engaging in actions violating Canadian competition laws-And mitigating factors: guilty plea; accused's cooperation; arrangement not put into effect, in fact, no victims who suffered loss as price of ductile iron pipe went down-Suggested fine of $2,500,000 reasonable-Highest fine under s. 45 to date-Competition Act, R.S.C., 1985, c. C-34, s. 45(1)(c) (as am. by R.S.C.,1985 (2nd Supp.), c. 19, s. 30).