Big tobacco heads to court; up to $27B at stake

[IcedCanuck]

Big tobacco heads to court; up to $27B at stake

Canada's biggest tobacco companies are taking on a group of Quebec smokers in a landmark case with up to $27 billion in damages and penalties at stake.

The trial got underway Monday in a Montreal courtroom where lawyers representing the smokers argued tobacco companies weren't upfront about the dangers of cigarette use, leading the plaintiffs to addiction and smoking-related illnesses.

Not only is the civil case considered the biggest in Canadian history, but it marks the first time in this country that tobacco companies have gone to trial for a civil suit.

The defendants are Imperial Tobacco Canada Ltd.; Rothmans, Benson & Hedges; and JTI-Macdonald. All three are expected to argue that customers were well-informed and none of their practices violated government regulations.

About 45 lawyers representing the smokers packed into Quebec's Superior Court, reported CTV Montreal's Stephane Giroux.

Among the lawyers was Rob Cunningham, an attorney and policy analyst with the Canadian Cancer Society. Outside the courtroom, he reiterated claims that the tobacco companies misled consumers on purpose.

"The allegations are very serious: that the industry knew of the health effects before the scientific community, that they denied it publically…," he said before referring to extensive public relations and marketing campaigns about "light and mild" cigarettes.

The class-action lawsuit is the marriage of two cases filed in 1998. It took nearly 15 years for the suits to pass through the cogs of the legal system, including a certification from Quebec's Superior Court in 2005.

Lawyers for the smokers have accused the tobacco industry of trying to stall the trial with various motions and delays, said Giroux.

One suit was filed by an anti-tobacco group on behalf of Jean-Yves Blais, a frequent smoker seeking compensation for cigarette users who have developed lung cancer, emphysema and other illnesses.

Though Blais has had to receive treatment for lung cancer, he continues to smoke. He began at age 10 and says he wasn't adequately informed about the perils of lighting up. In an interview with CTV News in 2005, Blais said he has tried many times to quit with no success.

The group representing Blais and other ill smokers is seeking about $105,000 in damages for each complainant, reported CTV News Channel's Merella Fernandez. If successful, their part of the case is estimated to total about $5 billion in damages and penalties.

The other part of the lawsuit was filed on behalf of millions of Quebec smokers who are or have been addicted to nicotine and claim the tobacco industry didn't sufficiently warn consumers about cigarettes, despite knowing how harmful the product could be.

Filed by Cecilia Letourneau, an addicted smoker who began lighting up in 1964, it's estimated that up to $17 billion in damages and penalties are at stake in the case. Letourneau is seeking $10,000 in damages and punishment on behalf of each plaintiff.

The overall class-action lawsuit is now estimated to be worth up to $27 billion due to the amount of time that's elapsed between now and the original filings, Fernandez told CTV News Channel on Monday.

When suits were approved, the presiding judge identified a number of issues that will need to be weighed in court. According to The Canadian Press, those included:

Did the companies trivialize or deny the risks of smoking?

Did they uphold some sort of non-disclosure policy?

Did they intentionally harm the complainants?

The case is expected to have far-reaching implications. The tobacco industry has said that if it loses this case, it will seek damages from the federal government, which is expected to deny any liability during the trial.

The lawsuit is also expected to impact a separate case, which could see provinces recouping health-care costs from tobacco companies. So far, four provinces have filed: British Columbia, Ontario, New Brunswick and Newfoundland and Labrador. Other provinces have said they intend to file.

Any possible fallout, however, is far off. While the plaintiffs begin arguing their case before Justice Brian Riordan in Montreal this week, the defendants aren't expected to begin theirs until 2013.

"Just the plaintiff's case will take until the end of the year," said Fernandez. "They're talking about millions and millions of documents and paperwork to be passed back and forth."

Read more: http://www.ctv.ca/CTVNews/TopStories/20120312/landmark-tobacco-suit-heads-to-court-120312/#ixzz1ovG8wgka

[Puros Y Vino]

Great, just as I was about to invest in some "sin" stocks.

I'm no fan of cigarettes but understand that there is an addictive quality to them but when I see this..

"Jean-Yves Blais, a frequent smoker seeking compensation for cigarette users who have developed lung cancer, emphysema and other illnesses. Though Blais has had to receive treatment for lung cancer, he continues to smoke. He began at age 10 and says he wasn't adequately informed about the perils of lighting up. In an interview with CTV News in 2005, Blais said he has tried many times to quit with no success."

I have to wonder about the concept of "personal responsibility". In the old days tobacco was marketed and even in some cases endorsed by doctors but when a kid starts smoking at 10, you've got to ask where were the parents in this?

[IcedCanuck]

Great, just as I was about to invest in some "sin" stocks.

I'm no fan of cigarettes but understand that there is an addictive quality to them but when I see this..

"Jean-Yves Blais, a frequent smoker seeking compensation for cigarette users who have developed lung cancer, emphysema and other illnesses. Though Blais has had to receive treatment for lung cancer, he continues to smoke. He began at age 10 and says he wasn't adequately informed about the perils of lighting up. In an interview with CTV News in 2005, Blais said he has tried many times to quit with no success."

I have to wonder about the concept of "personal responsibility". In the old days tobacco was marketed and even in some cases endorsed by doctors but when a kid starts smoking at 10, you've got to ask where were the parents in this?

That was exactly what I was thinking as well when I first read this. I don't think they have a snow balls chance in hell of winning this case but with the anti-tobacco movement picking up as much steam as it has I wouldn't be at all surprised if they lost.

[canadianbeaver]

Ten bucks says in 5 years (or sooner) there will be law suits against lotteries for addiction and lost income, "no one told us we stood such a little chance of winning".

Blah Blah Blah.

[IcedCanuck]

Ten bucks says in 5 years (or sooner) there will be law suits against lotteries for addiction and lost income, "no one told us we stood such a little chance of winning".

Blah Blah Blah.

Nobody wants to take responsibility for their own actions. Interesting comments because the Ontario gov has just unveiled new gambling industry overhaul:

Ontario unveils gambling industry overhaul

[Puros Y Vino]

That was exactly what I was thinking as well when I first read this. I don't think they have a snow balls chance in hell of winning this case but with the anti-tobacco movement picking up as much steam as it has I wouldn't be at all surprised if they lost.

If this is trial by jury I've got to think there are some like minded individuals asking the same question. "Where was your head at?" I can agree that the industry used shady marketing practices and claims and perhaps some "punishment" is due there. Many industries still do that to this day. I just watched a video on how much "blueberries" are actually in certain products claiming to have them. It turns out most food companies "make" their blueberries out of various sugar, cellulose and color dyes. You'd have to be a chemist to figure out which ingredients made them up.

The science around tobacco and health effects is so mired in reasonable doubt that it could go either way.

[ramon_cojones]

Ah Canada.

[canadianbeaver]

I find it interesting that folks can pay so much for cigarettes when they can barely rub two pennies together for other necessities they need at home. Someone then comes along and says, wait your health sucks and you can cash in on it from "Big Tobacco - ooooh evil".

Let's see how many folks quit if they get a pay out.

Hmmmm....

[Puros Y Vino]

I find it interesting that folks can pay so much for cigarettes when they can barely rub two pennies together for other necessities they need at home. Someone then comes along and says, wait your health sucks and you can cash in on it from "Big Tobacco - ooooh evil".

Let's see how many folks quit if they get a pay out.

Hmmmm....

That's why the vices do so well Lisa. When real life knocks at your door a lot of people escape into the bottle or light up. I bet those plaintiffs are being supported by Health Canada.