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

HJ Cody Lakers football members receive two major awards at footbal league banquet

HJ Cody hosted the annual CAHSFL All Star Awards and Banquet Dec. 5

Lakewood Golf Resort near Sylvan Lake expanding to 18-hole course

Lakewood Golf Resort was approved for the expansion by Red Deer County at a recent meeting

Sylvan Lake Library raises $600 for Christmas Bureau

Funds from the library’s coffee and cookie fundraiser were presented to the Christmas Bureau Dec. 5

Two dead in three-car collision on Hwy 11 near Alberta Springs Golf Course

Two women were pronounced dead on the scene of an accident Wednesday afternoon

Calgary police officer shares his story with Sylvan Lake parents and youth

A small audience listened to a presentation on bullying by Bullying Ends Here founder Tad Milmine

Fashion Fridays: Ethical and sustainable gifts for the season

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Proposed health care changes would be “devastating” to rural family practice: president of AMA

AHS, AMA and MLA Ron Orr chime in on recent health care announcements

Man accused in toddler son’s death inept parent, not murderer: defence

Toddler’s body was found outside Good Shepherd Anglican Church in April 2017

Job numbers disappointing, but oil and gas growth expected in 2020: Kenney

Unemployment rate in Alberta rose to 7.2 per cent from 6.7 per cent last month

‘Things haven’t changed enough:’ Ecole Polytechnique anniversary prompts reflection

Fourteen women were fatally shot by a gunman at the Montreal school on Dec. 6, 1989

Feds approve Alberta’s carbon tax on big industrial emitters

Tax will be applied on 10 per cent of emissions produced by the province’s biggest polluters

Appeal denied: Alberta’s top court upholds conviction of triple-murderer

Douglas Garland was convicted of first-degree murder in the deaths of a couple and their grandson

Second warning on romaine lettuce from California region as another E. coli case reported

Two cases of E. coli have been reported in relation to the illness in the U.S.

Many of Canada’s working poor can’t afford lawyers, don’t qualify for legal aid

One lawyer says many people earn too much to qualify for legal aid, but not enough to really live on

Most Read