Historical Cost of Proceedings Before the Tribunal (3)

TAB C
CANADA (DIRECTOR OF INVESTIGATION & RESEARCH) v. THE NUTRASWEET COMPANY

C.1 Background Summary

The Director filed an Application against NutraSweet on June 1, 1989 at the instigation of a potential competitor attempting to enter the Canadian aspartame market. The Director alleged that NutraSweet's practices constituted abuses of its dominant market position. The Tribunal was asked to consider various provisions of the Act, with tied selling constituting only one of several allegations. The Hearings, which lasted fifteen days, began in January 1990 and ended in July of that year. The Tribunal issued a prohibition Order on October 4, 1990; however, no finding was made with respect to tied selling. In April 1994, the Director began investigations regarding NutraSweet's compliance with the Order, which terminated upon NutraSweet agreeing to send explanatory letters to customers.

C.2 Historical Cost Summary

The estimated historical costs incurred in investigating and prosecuting the Case are summarized as follows:

Salaries and wages of Bureau staff	$   234,776
Salaries and wages of Justice Department staff	7,453
Experts	170,919
External legal counsel	691,369
Travel	67,364
Other	52,070
Overhead	225,244
Aggregate estimated historical costs	$1,449,195

C.3 Salaries and Wages of Bureau Staff

The Manager allocated the total number of hours which had been recorded in the Case to the categories of employees who performed the work. Section 3.2.7 provides a description of how the cost relating to the salaries and wages of Bureau employees was developed.

C.4 Salaries and Wages of Justice Department Staff

Lawyers from the Justice Department played a supporting role in the litigation; an outside law firm was retained to provide the majority of the legal services. Two Justice Department lawyers worked on the Case. One of the lawyers was unable to provide an estimate of his time. The second lawyer recalled only a minimal amount of time spent. The Manager from the Bureau recalled that at least one Justice Department lawyer was present throughout the Hearing. The Manager therefore made an upward adjustment to the lawyers' estimate to include the approximate time spent at the Hearing.

C.5 Experts

The costs relating to experts were extracted from the DSS Reports.

C.6 External Legal Counsel

An outside law firm was retained to litigate on behalf of the Bureau. The firm's invoices provided us with documentary evidence as to the historical cost to the Bureau of external legal counsel as well as related travel costs and other disbursements.

C.7 Travel

Travel costs were extracted from the DSS Reports. This category in the DSS Reports includes travel costs incurred by Bureau and Justice Department lawyers.

As the information with respect to outside counsel's travel was available in this Case (these items being separately identified in the legal invoices), these costs were separately tabulated and included in the "Travel" category, along with Bureau and Justice Department travel costs.

C.8 Other

Any other costs relating to the Case were extracted from the DSS Reports. In addition, document reproduction costs were estimated and included in "Other" costs, as described in Section 3.2.6.

C.9 Overhead

Overhead costs were estimated as described in Section 3.2.7.

Table of Contents

SCHEDULE C-1

CANADA (DIRECTOR OF INVESTIGATION AND RESEARCH) v. THE NUTRASWEET COMPANY
SALARIES AND WAGES OF BUREAU STAFF
Title	Category	Estimated Hours Conducting the Case								Total Hours	Salaries & Wages
		1987/88		1988/89	1989/90	1990/91		1991/92
Manager	2	-		49	25	12		1		87	$   4,085
Manager	1	-		400	300	150		15		865	37,073
Officer	3	369		923	1,299	431		210		3,232	116,970
Officer	2	-		340	1,299	431		210		2,280	62,444
Economist	6	-		-	210	-		-		210	7,546
Economist	5	-		-	210	-		-		210	6,658
		369		1,712	3,343	1,024		436		6,884	$234,776

NOTE: This schedule forms part of, and should be read in conjunction with, the accompanying report.

SCHEDULE C-2

CANADA (DIRECTOR OF INVESTIGATION AND RESEARCH) v. THE NUTRASWEET COMPANY
SALARIES AND WAGES OF JUSTICE DEPARTMENT STAFF
Title	Category	Estimated Hours Conducting the Case								Total Hours	Salaries & Wages
		1987/88		1988/89	1989/90	1990/91		1991/92
Counsel	2A	13		46	94	31		16		200	$7,453

NOTE: This schedule forms part of, and should be read in conjunction with, the accompanying report.

SCHEDULE C-3

NOTE: This schedule forms part of, and should be read in conjunction with, the accompanying report.

Table of Contents

TAB D
CANADA (DIRECTOR OF INVESTIGATION & RESEARCH) v. XEROX CANADA INC.

D.1 Background Summary

In October 1988, the Bureau received a complaint against Xerox. The complainant alleged that its business was substantially affected because of the inability to obtain an adequate supply of specified copier parts from Xerox. The Bureau initiated a formal inquiry in March 1989.

On November 16, 1989, a refusal-to-supply Application was filed against Xerox by the Director. Hearings took place on June 11 through 20 and July 19 and 20, 1990. On November 2, 1990, the Tribunal rendered its judgement and ordered Xerox to resume supply to the complainant of Xerox brand copier parts for models introduced between 1983 and 1989.

A complaint was filed in July 1992 alleging that Xerox was not complying with the Tribunal's Order. A new project was initiated by the Director, which was subsequently discontinued after a change in policy by Xerox.

Costs incurred on this project are not included in the Historical Cost Summary.

D.2 Historical Cost Summary

The estimated historical costs incurred in investigating and prosecuting the Case are summarized as follows:

Salaries and wages of Bureau staff	$   163,974
Salaries and wages of Justice Department staff	94,882
Experts	119,178
External legal counsel	-
Travel	17,283
Other	1,419
Overhead	159,837
Aggregate estimated historical costs	$556,573

D.3 Salaries and Wages of Bureau Staff

As in several other Cases, the hours recorded in the time-reporting system were not identified by the category of employee who performed the services. The Officer who conducted the Case recalled the individuals who assisted him and concluded that an allocation of all of the hours to a category two Officer was reasonable for purposes of calculating the approximate cost of work performed by Bureau staff.³³

D.4 Salaries and Wages of Justice Department Staff

The cost to the Bureau of the Justice Department's involvement in the Case was determined as described in Section 3.2.2.

D.5 Experts

The historical cost of outside experts who were retained to assist the Bureau in conducting Cases was extracted from the DSS Reports. Cost of experts included the respective services of a public accounting firm and economists. The invoices from the accounting firm were available and, based on our review thereof, accountants' fees represented approximately one-half of the expenditures for expert services.

D.6 External Legal Counsel

The Justice Department's lawyers litigated the Case on behalf of the Bureau; external counsel were not retained.

D.7 Travel

The DSS Reports provided the historical Travel costs. The Officer who conducted the Case informed us that one of the lawyers who litigated the Case was based in Toronto; consequently, travel costs between Toronto and Ottawa would have been incurred, over and above the costs for approximately ten witnesses.³⁴

D.8 Other

Document reproduction costs were estimated and included in the "Other" cost category as described in Section 3.2.6.

D.9 Overhead

The overhead costs were estimated as described in Section 3.2.7.

Table of Contents

SCHEDULE D-1

CANADA (DIRECTOR OF INVESTIGATION AND RESEARCH) v. XEROX CANADA INC.
SALARIES AND WAGES OF BUREAU STAFF
Title	Category	Estimated Hours Conducting the Case								Total Hours	Salaries & Wages
		1988/89			1989/90	1990/91		1991/92
Manager	1	73			164	279		10		526	$   23,314
Officer	2	723			1,635	1,862		130		4,359	140,660
		805			1,799	2,141		140		4,885	$163,974

NOTE: This schedule forms part of, and should be read in conjunction with, the accompanying report.

SCHEDULE D-2

CANADA (DIRECTOR OF INVESTIGATION AND RESEARCH) v. XEROX CANADA INC.
SALARIES AND WAGES OF JUSTICE DEPARTMENT STAFF
Title	Category	Estimated Hours Conducting the Case								Total Hours	Salaries & Wages
		1988/89			1989/90	1990/91		1991/92
General Counsel	3A	164			385	417		29		995	$   50,944
Counsel	2A	164			365	417		29		975	43,938
		328			750	834		58		1,970	$94,882

NOTE: This schedule forms part of, and should be read in conjunction with, the accompanying report.

SCHEDULE D-3

CANADA (DIRECTOR OF INVESTIGATION AND RESEARCH) v. XEROX CANADA INC.
EXPENDITURES
	Professional Fees	Travel	Other	Total
Experts	$  119,178	$          &n bsp; -	$          &n bsp;-	$  119,178
External Legal Counsel	-	-	-	-
Bureau and Justice Travel	-	17,283	-	17,283
Other	-	-	1,419	1,419
Total Expenditures	$  119,178	$  17,283	$  1,419	$  137,880

NOTE: This schedule forms part of, and should be read in conjunction with, the accompanying report.

Table of Contents | Tabs E & F