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

First Nations included in latest Columbia River Treaty talks

Seventh round of negotiations between Canada and U.S. wrap up in Washington D.C.

Golden’s weekly news recap

Find out what’s going on in the community

Host/creator of ‘Sport Fishing on the Fly’ shares destination portal

‘Sport Fishing on the Fly’ host Don Freschi hooks people up with the ultimate fly-fishing experience

Services report: Golden Fire Rescue saves cat from tree

Golden Fire Rescue Golden Fire Rescue was very busy over the past… Continue reading

Rockets gain an edge with dedicated athletic therapist

The Golden Rockets are upping their game this year in many different… Continue reading

VIDEO: Killer whale steals fisherman’s catch off North Coast

Fishing duel results in eager orca snagging salmon in Prince Rupert

Fate of accused in Canadian couple’s 1987 killings in jury’s hands

William Talbott’s lawyer says DNA doesn’t prove murder

Child killed after being hit in driveway on Vancouver Island

The driver of the vehicle remained at the crash scene and is fully cooperating

Eating sandwiches, putting on makeup behind the wheel could land you a fine

RCMP say if you cause an accident while eating you could be penalized

Cat badly hurt in animal trap was likely stuck for days, B.C. owner says

Blu, a three-year-old house cat, suffered severe damage to his hind leg after being stuck in trap for days

40 cats surrendered in apparent hoarding at B.C. home

Officers found the cats living among piles of garbage and feces, suffering from fleas

Vancouver Aquarium drops cetacean ban lawsuit in new lease agreement

Ocean Wise CEO Lasse Gustavsson called the updated lease an exciting new chapter for the aquarium

Thieves steal two $40K chairs featuring gold serpents from B.C. furniture store

Chairs believed to be the only two of its kind in Canada, police said

Rising gas prices force B.C. residents to rethink summer road trips: poll

63 per cent of respondents reported gas prices are impacting their day-to-day finances

Most Read