A ruling from Quebec’s court system ensures that the tobacco litigation currently underway in the province adds up to more than billable hours
Imperial Tobacco and Rothmans Benson & Hedges have been ordered by the Quebec Court of Appeal to set aside almost $1 billion for members of Canada's largest class-action lawsuit.
Earlier in the year LHP reported that the two companies and JTI-Macdonald would have to pay more than $15 billion to over one million Quebec smokers. This order ensures that the plaintiffs get something from years of litigation.
"It is not acceptable that appellants merely say that they have no funds to satisfy the judgment or an order to furnish security and continue to distribute earnings because that is ‘business as usual,’ said Court of Appeal Justice Mark Schrager in his ruling. “I do not question appellants' right to appeal but neither can I stand idly by while appellants pursue an appeal which will benefit them if they win but which will not operate to their detriment if they lose."
The case marks the first time tobacco companies have gone to trial in a civil suit in this country. The companies will have to pay in equal installments over the next six years (Rothmans Benson & Hedges) or seven years (Imperial Tobacco).
"The above amounts are less than average quarterly revenue. They are far easier to manage financially than a single lump sum," Schrager said.
Imperial Tobacco issued a statement late Tuesday, saying it is disappointed with the Court of Appeal's decision.
"Imperial Tobacco Canada ... does not believe it should have to secure a payment before all appeals are exhausted and a final judgment is rendered," the statement said. "Imperial Tobacco Canada continues to disagree with the overall judgment rendered by the Superior Court of Quebec. It is unjustified to hold legal manufacturers responsible for the personal choices of adult consumers and it will continue to defend that position as its appeals proceed before the courts."
Earlier in the year LHP reported that the two companies and JTI-Macdonald would have to pay more than $15 billion to over one million Quebec smokers. This order ensures that the plaintiffs get something from years of litigation.
"It is not acceptable that appellants merely say that they have no funds to satisfy the judgment or an order to furnish security and continue to distribute earnings because that is ‘business as usual,’ said Court of Appeal Justice Mark Schrager in his ruling. “I do not question appellants' right to appeal but neither can I stand idly by while appellants pursue an appeal which will benefit them if they win but which will not operate to their detriment if they lose."
The case marks the first time tobacco companies have gone to trial in a civil suit in this country. The companies will have to pay in equal installments over the next six years (Rothmans Benson & Hedges) or seven years (Imperial Tobacco).
"The above amounts are less than average quarterly revenue. They are far easier to manage financially than a single lump sum," Schrager said.
Imperial Tobacco issued a statement late Tuesday, saying it is disappointed with the Court of Appeal's decision.
"Imperial Tobacco Canada ... does not believe it should have to secure a payment before all appeals are exhausted and a final judgment is rendered," the statement said. "Imperial Tobacco Canada continues to disagree with the overall judgment rendered by the Superior Court of Quebec. It is unjustified to hold legal manufacturers responsible for the personal choices of adult consumers and it will continue to defend that position as its appeals proceed before the courts."
