agreed facts
3 The parties together submit that the Court should make the orders sought as set out in a minute of proposed consent orders, having regard to the conduct of the first respondent. In that regard, the parties through their solicitors signed a statement of agreed facts dated 4 December 2009.
4 The Court received this statement of agreed facts at the hearing of the application. As explained further below it appears to the Court that it is appropriate to regard the statement of agreed facts in determining whether or not to make orders in the proceeding by consent of the parties.
5 The statement of agreed facts provides as follows.
6 The applicant is, and was at all material times, a body corporate established by s 6A of the Trade Practices Act 1974 (Cth) (Act).
7 The respondent, Wilson Parking Australia 1992 Pty Ltd (Wilson), is, and was at all material times:
1. a company duly incorporated and carrying on business in Australia; and
2. a corporation within the meaning of the Act.
8 Wilson is in the business of, among other things, providing mobile security patrol services (Patrol Services) to Customers in Western Australia through its security business division in Western Australia.
9 Wilson performs Patrol Services by causing its patrol officers to conduct security inspections of Customers' premises (Calls). Typically, a patrol officer will be assigned a schedule (known as a "run") of premises to attend and inspect during a shift. That schedule typically includes premises owned by more than one Customer.
10 Because Patrol Services are generally performed:
(a) at times outside normal business hours;
(b) without necessarily leaving any independent record of performance; and
(c) in the physical absence of the Customers and their employees;
it may be difficult for Customers to determine whether or not patrol officers have performed any particular number of Calls during a period.
11 On various dates, Wilson entered into Contracts (Contracts) for the supply of Patrol Services with each of the entities listed (Customers) in column A of the Schedule attached to the accompanying Minute of Consent Orders (Schedule). But not reproduced in these reasons.
12 It was a term of each Contract that:
(a) in supplying the Patrol Services, Wilson would make a stated number of Calls at the Customer's premises in a specified service period (Contracted Calls); and
(b) Wilson would use its best endeavours to provide the Contracted Calls, however interruptions or delays (or both) caused by break ins at any other Customers' premises and other emergencies including fire, flood, accident, police or emergency service activities may prevent all of the Contracted Calls being carried out during each service period (Permitted Missed Calls). This clause of each Contract was referred to by Wilson and is generally known in the security patrol industry as a "shared services clause" (Shared Services Clause).
13 The purpose of a Shared Services Clause is to provide for the possibility that a patrol officer may be delayed or prevented from making a call to one Customer's premises during a run because the patrol officer needed to respond to a break-in or other emergency at another Customer's premises.
14 During the period October 2007 to June 2008 (Relevant Period), Wilson had an insufficient number of patrol officers to make all of the Contracted Calls for all of the Customers.
15 During the Relevant Period, for each month specified in each row of column D of the Schedule:
(a) Wilson made the number of Calls specified in the corresponding row of column F of the Schedule (Actual Calls) to the premises of the Customers specified in the corresponding row of column B of the Schedule;
(b) the Actual Calls fell short of the Contracted Calls by the number specified in the corresponding row of column G of the Schedule (Missed Calls);
(c) Wilson Missed Calls that were not Permitted Missed Calls; and
(d) Wilson issued monthly Invoices (Invoices) to the Customers on the dates listed in column I of the Schedule for the amount due to be paid by the relevant Customer for the Contracted Calls for the relevant month.
16 The amount of each invoice corresponded with the amount chargeable for the Contracted Calls.
17 By issuing each of the Invoices, Wilson represented to each Customer that it had made the Contracted Calls in the preceding month, save for any Permitted Missed Calls (Call Representations).
18 The Call Representations were false because:
(a) the Actual Calls for each Customer fell short of the Contracted Calls by the specified number of Missed Calls in column G of the Schedule; and
(b) Wilson Missed Calls that were not Permitted Missed Calls.
19 From October 2007 to June 2008, Wilson knew:
(a) that it had an insufficient number of patrol officers to perform the Contracted Calls for all of the Customers; and
(b) the matters set out in [15] above.
20 From October 2007 to September 2008, Wilson refrained from:
(a) informing any of the Customers of the number of Missed Calls;
(b) informing any of the Customers that it Missed Calls that were not Permitted Missed Calls;
(c) reducing the amount charged in the Invoices to less than the amount chargeable for the Contracted Calls; and
(d) providing the Customers with a refund, credit or rebate in relation to any Missed Calls;
when the Customers would reasonably have expected that, if Wilson had Missed Calls that were not Permitted Missed Calls, Wilson would have disclosed that fact to them.
21 In October 2007, Wilson operational management in Western Australia identified to Wilson senior management in Victoria that it had an insufficient number of patrol officers to perform the Contracted Calls for all of the Customers. In early November 2007, Wilson senior management authorised and directed operational management to raise and pay credits to Customers for Missed Calls which were not Permitted Missed Calls. Due to a failure at an operational management level in Western Australia, credits, while provisioned in November, were not actually paid.
22 From July 2008, Wilson was made aware of the ACCC's investigation of the conduct that is the subject of these proceedings, including the failure to pay credits or inform Customers about any failure to perform the Contracted Calls.
23 Credits were then raised and paid by Wilson to Customers, backdated to and including October 2007 for Missed Calls, which were not Permitted Missed Calls, between October 2007 and June 2008.
24 Wilson has raised and paid credits for all Missed Calls to Customers, whether or not they are Permitted Missed Calls, as follows:
(a) in September 2008, Wilson processed $84,104 worth of credits for the period October 2007 - January 2008;
(b) in September 2009, Wilson processed $146,214.89 worth of credits for the period February 2008 - July 2008;
(c) from August 2008, Wilson has issued a manual adjustment note after each monthly invoice, crediting Customers for any Missed Calls during the month covered by that invoice.