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

Rollover crash in South Surrey

One person airlifted following incident near 40 Avenue and 160 Street

Surrey council approves modular housing projects for homeless after lengthy hearing

Vote comes after three-hour-long public hearing over supportive housing projects in Whalley, Guildford

Surrey mayor appoints his Safe Surrey Coalition to police transition committee

McCallum dissolved the city’s public safety committee last week in favour of the new committee

Another 250 units proposed for booming block in Clayton neighbourhood

New developments join list of projects popping up near new Salish Secondary, future community centre

PHOTOS: Beach day in White Rock

Summer heat brings locals and tourists to the beach

VIDEO: Young couple found dead in northern B.C. had been shot, police say

Chynna Noelle Deese of the U.S. and Lucas Robertson Fowler of Australia were found along Highway 97

Hazmat incident closes down Lower Mainland street

One person is believed to be dead, police said

VIDEO: Man found dead near B.C. teens’ truck could be linked to a double homicide

RCMP said they are looking for Kam McLeod, 19, and Bryer Schmegelsky, 18, of Port Alberni

Latest plan is to fly trapped fish by helicopter over Big Bar slide

Multi-pronged plan set in motion to freesalmon blocked by landslide in the Fraser River

Family of missing B.C. senior with dementia frustrated with situation, heartened by community support

Nine days since Grace was last seen the question remains: ‘How can an 86-year-old just disappear?’

Unsealed record suggests U.S. man convicted of murdering Vancouver Island couple left DNA on zip tie in 1987

William Talbott is set to be sentenced Wednesday in the murders of Jay Cook and Tanya Van Cuylenborg

Okanagan Air Cadet challenges gender-exclusive haircut policy

Haircut regulation inspires challenge around gender identity

Pride flags stolen from Lower Mainland church

Went missing sometime Friday night, says Maple Ridge reverend

25 new wheelchair-accessible cabins open at Cultus Lake Provincial Park

Maple Bay Campground is now home to 25 new wheelchair friendly cabins, a first for BC Parks

Most Read

l -->