Court extends order suspending legal proceedings against big tobacco companies

JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. were granted protection from their creditors

An Ontario court has extended an order that suspended legal proceedings against three big tobacco companies.

JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. were granted protection from their creditors last month after they lost an appeal in a multibillion-dollar case in Quebec.

On March 1, Quebec’s highest court upheld a landmark judgment that ordered the companies to pay more than $15 billion to smokers who were part of two class-action lawsuits.

The companies quickly secured creditor protection in Ontario, putting all legal proceedings on hold so that a global settlement could be negotiated with all those who have claims against them, including the class-action members and several provincial governments.

The stay was set to expire at midnight Friday but Ontario Superior Court Justice Thomas McEwen agreed to push the deadline to June 28.

However, McEwen has yet to rule on a motion that could lift the stay and send the matter back to the Quebec court of appeal. That decision is expected the week of April 15.

Lawyers representing the class-action members argued earlier this week that the stay in their case should be revoked if the companies intend to appeal the Quebec ruling to the Supreme Court of Canada.

Appealing would mean the companies do not recognize their debt to the class-action members, which means they would not be negotiating a settlement in good faith, the lawyers argued Thursday.

What’s more, the possibility of an appeal that would further prolong the case could be used as leverage in negotiations, they said.

The lawyers said if the companies intend to seek leave to appeal to the Supreme Court, they should instead ask the Quebec appeal court to suspend the implementation of its judgment until the appeal process is over.

The companies have said they had no choice but to seek protection from their creditors, and said the Ontario court was the appropriate venue to deal with the issue.

Lawyers representing several provinces — including British Columbia, Saskatchewan, Nova Scotia and New Brunswick — have opposed the class-action members’ application, saying it would give preferential treatment to claimants in one province over the others.

Paola Loriggio, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Nanaimo Ladysmith education support workers reach tentative three-year deal

Union membership to vote on collective agreement on July 31

Advocates for now-closed Nanaimo soup kitchen ask for city’s help

Wisteria Community Association’s Stone Soup shut down following eviction of owners this week

15-year-old with imitation gun caused ‘dynamic’ scene at Nanaimo mall last night

No one was harmed in Monday’s incident, say Nanaimo RCMP

Nanaimo mom says she will go to court to try to get allegedly abducted daughter back

Tasha Brown says her estranged wife abducted their daughter Kaydance Etchells in 2016

Nanaimo Marine Festival honouring tubbing’s ‘mom’

Longtime volunteer Margaret Johnson depicted on souvenir coins and named parade marshal

Nanaimo mom says she will go to court to try to get allegedly abducted daughter back

Tasha Brown says her estranged wife abducted their daughter Kaydance Etchells in 2016

Three blocks of Bruce Avenue will be closed until fall

Work will include utility upgrades, new curbs and sidewalks and new on-street bike lanes

Report of dead body in B.C. park actually headless sex doll

This discovery, made at Manning Park on July 10, led police to uncovering two other sex mannequins

Grand Forks fire chief found to have bullied, harassed volunteer firefighter: report

WorkSafeBC, third-party human resources investigation looking into allegations complete

Dog recovering after being drenched in hot coffee, B.C. man charged

Man was taken into custody, charged, and released pending a court date

Taekwondo instructor, 21, identified as B.C. bat rabies victim

Nick Major, 21, an instructor at Cascadia Martial Arts in Parksville

Science expedition to Canada’s largest underwater volcano departs Vancouver Island

Crews prepared for a two-week research mission to the Explorer Seamount

B.C. shipyard to get one-third of $1.5 billion frigate-repair contract

The federal government has promised to invest $7.5 billion to maintain the 12 frigates

Nanaimo students pushing for youth-led climate advisory group

Group would be responsible for organizing community cleanups, meetings and other events

Most Read