Court rules tobacco companies must be defendants in suit

Sock it to 'em, Judge Holmes! I'm pleased to see this ruling. It's high time the tobacco companies are held accountable.

B.C. Supreme Court rules foreign tobacco companies must be defendants in suit

at 19:38 on June 23, 2005, EST.
CAMILLE BAINS

VANCOUVER (CP) - A judge has dismissed an application by at least nine foreign tobacco manufacturers to remove them as defendants in British Columbia's lawsuit aimed at recovering medicare costs.

The big tobacco companies, mostly based in the United States and Britain, argued the province couldn't recover billions of dollars in health-care costs from them because provincial legislation applies only to local matters. B.C. Supreme Court Justice Ronald Holmes ruled on Thursday there was a connection between the companies and the sale of cigarettes in the province.

Philip Morris had argued it would be better to have the case tried in the United States, something Holmes dismissed.

"The factual underpinning of the (B.C. government's) action clearly identifies British Columbia as the jurisdiction most closely connected to the action," the judge said in his written decision.

Another company said the case was a violation of NAFTA, an argument Holmes also quashed.

In May 2004, an appeals court judge ruled the province's Tobacco Damages and Health Care Costs Recovery Act was constitutional.

Last December, the Supreme Court of Canada agreed to hear an appeal by three tobacco companies fighting the B.C. legislation. It gave the province the green light to proceed with a lawsuit seeking $10 billion from the tobacco industry.

Health Minister George Abbott said he's pleased with the ruling.

"Obviously, it is a very important clarification of British Columbia's jurisdiction in relation to foreign tobacco companies," Abbott said.

"We look forward now to continuing our aim of securing some accountability from the tobacco industry for the harm that is caused by its products."

Rob Cunningham, a senior policy analyst with the Canadian Cancer Society, said the fact that multinational tobacco companies can now be named as defendants is a victory for British Columbia.

"It's a big one for B.C. in terms of the allegations of the worldwide conspiracy by the tobacco companies to deny the health effects of smoking and to engage in wrongful behaviour," Cunningham said from Ottawa.

"It's a big blow for tobacco companies because now they can be put on trial."

Dave Laundy, vice-president of the Canadian Tobacco Manufacturers' Council, said three Canadian companies are named among the various foreign cigarette manufacturers in the ruling released on Thursday.

He said B.C. taxpayers have been on the hook for millions of dollars for the government's legal proceedings to seek damages that tobacco companies can't afford to pay.

"This has been a long, drawn-out, very expensive process," Laundy said.

"The government of British Columbia is saying it's going to seek an award of $10 billion and we've been saying all along that there's no way that these companies could withstand the settlement, even a fraction of that magnitude," he said.

"We'd be happy to work with the government and support them in some of their programs that they launch for discouraging youth smoking and that kind of thing."

As defendants, the tobacco companies' internal documents must be produced as evidence, making them potentially liable for damages, Cunningham said.

"The tobacco industry has a history of seeking to avoid accountability anywhere and everywhere," he said. "This court has said that they have to be ready to stand trial in British Columbia."

The B.C. government has previously said it is trying to recover costs from cigarette manufacturers because medical costs for smoking-related illnesses have spiralled to beyond $500 million a year.

Source[/color]