Tobacco lawsuits in Canada: An overview of the landmark $15.5 billion trial judgment against the

tobacco industry and other legal initiatives in Canada

Rob Cunningham Canadian Cancer Society

World Cancer Congress Paris, France, November 2, 2016

Quebec class actions • (1) Létourneau; (2) Blais and Quebec Council on

Tobacco and Health • 2 class actions, on based on (1) addiction, (2)

individuals with lung cancer/throat cancer/emphysema • Filed against thee major Canadian companies,

subsidiaries of British American Tobacco, Philip Morris International, Japan Tobacco International

• Filed 1998 • Trial 2012 – 2014 • Sought $27 billion

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Jean-Yves Blais Cécilia Létourneau Mario Bujold, QCTH

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Lawyers for the plaintiffs, Quebec class actions

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Former Imperial Tobacco in-house counsel Roger Ackman

Quebec class actions • $15.5 billion judgment May 27, 2015 • Devastating judgment • Evidence significant, beneficial for other cases • $984 million initial security payment, 7 installments • Appeal begins November 21, 2016 • Blog: http://tobaccotrial.blogspot.ca/v

• Documents: https://tobacco.asp.visard.ca/Main.htm

[1037] Over the nearly fifty years of the Class Period, and in the seventeen years since, the Companies earned billions of dollars at the expense of the lungs, the throats and the general well-being of their customer. If the Companies are allowed to walk away unscathed now, what would be the message to other industries that today or tomorrow find themselves in a similar moral conflict?

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Quebec Superior Court, May 27, 2015

[1038] The Companies' actions and attitudes over the Class Period were, in fact, "particularly reprehensible" and must be denounced and punished in the sternest of fashions. To do so will be to favour prevention and deterrence both on a specific and on a general societal level. We reject the Companies arguments that there is no justification to award punitive damages against them.

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Quebec Superior Court, May 27, 2015

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Contraband Settlements • vast shipments in 1990s to US that returned to

Canada as contraband • C$600 million, Imperial Tobacco (2008) (BAT affiliate)

• C$550 million, RBH (2008) (PMI affiliate)

• C$550 million, JTI/RJR (2010) ---------------- • C$1.7 billion in fines ($525 million) and civil

settlements paid over years, but less on present value • Each company convicted on a guilty plea • Two JTI executives previously convicted • Criticism of settlements

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Non-Smokers’ Rights Association, released 2014 http://www.nsra-adnf.ca/cms/file/files/What_Were_They_Smoking-FINAL_Aug_26_2013.pdf

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Overview – provincial government medicare cost recovery

• 12 of 13 provinces/territoires adopted legislation to facilitate a lawsuit

• All 10 provinces have filed lawsuits • Foreign parent companies BAT, PMI, RJR named

as defendants

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Claims

• Ontario – $50 billion • Quebec – $60 billion • Past medicare costs; projected future costs

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Ontario Attorney General Chris Bentley, March 4, 2009, announcing introduction of legislation

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Saskatchewan Justice Minister Gordon Wyant, May 31, 2012

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Manitoba Justice Minister Andrew Swan, May 31, 2012

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Quebec Justice Minister Jean-Marc Fournier (left) and Health Minister Yves Bolduc, June 8, 2012

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Industry wrongdoing

Serious allegations 1. Advertising to underage youth

2. Advertising to women

3. Deceptive advertising, including for “light” and “mild” cigarettes

4. Failing to warn adequately on packages

5. Public relations campaigns denying health effects

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Industry wrongdoing 6. Concealing internal research on addiction, health

effects

7. Destroying internal documents

8. Conspiracy among companies

9. Continually countering government efforts to reduce tobacco use

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Major Threat

• Benefits: truth, justice, compensation, health

• Canada – largest litigation risk after US

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Thank you