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Court of Appeal overturns CAT penalty decision

31/07/12

On 31 July 2012, the Court of Appeal handed down judgment on an appeal brought by Interclass Holdings Ltd and Interclass Plc ("Interclass") against a judgment of the Competition Appeal Tribunal ("the CAT") handed down on 24 March 2011, [2011] CAT 7. Interclass had appealed to the CAT against the OFT's decision on bid rigging in the construction industry dated 21 September 2009 (the "Decision") in which Interclass was fined £464,406 for committing two infringements in 2001 and 2003 of the Competition Act 1998 of giving and taking a "cover price" from a rival bidder. Neither of the infringements involved the making or receiving of compensation payments.

The CAT had concluded that the total penalty imposed on Interclass should be reduced to £324,000.

On appeal by Interclass, the Court of Appeal held that the CAT had erred in its assessment of the penalty imposed on Interclass, and further reduced the total penalty to £202,000.

The judgment is here.

Aidan Robertson QC appeared on behalf of Interclass, instructed by Watson Burton LLP of Newcastle upon Tyne.

Kelyn Bacon appeared on behalf of the OFT in the Court of Appeal.

This is the final appeal against the Decision (there is one outstanding further appeal pending before the Court of Appeal against the CAT's decision on costs in another appeal). Aidan Robertson QC acted for 20 of the 112 original recipients of the OFT's Statement of Objections and for 8 of the 25 successful appellants against the Decision. Kelyn Bacon acted for the OFT in 5 of the appeals before the CAT, and is acting for the OFT in both of the cases which have gone on further appeal to the Court of Appeal.