UPDATE 1-Canada court orders tobacco giants to set aside almost C$1 bln

Tue Oct 27, 2015 6:34pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

(Adds detail from ruling, comment, background)

By Alastair Sharp

TORONTO Oct 27 (Reuters) - A Canadian appeal court on Tuesday ordered two major tobacco companies to set aside a combined C$984 million ($742 million) while they challenge billions of dollars in damages awarded to smokers in the province of Quebec.

The more than C$15 billion in damages awarded in June, if upheld in an appeal of two class-action lawsuits, would compensate some 100,000 Quebec smokers and ex-smokers who allege the companies knew since the 1950s their product was causing cancer and other illnesses and failed to warn consumers adequately.

Imperial Tobacco Canada Ltd - a subsidiary of British American Tobacco Plc - must put aside C$758 million and Rothmans, Benson & Hedges Inc - a subsidiary of Philip Morris International - must deposit C$226 million, the Quebec Court of Appeal said.

The court had in July said that the two companies plus a third, Japan Tobacco Inc's JTI-Macdonald Corp, would not have to make preliminary deposits.

"This is a major win for victims, and a significant loss for tobacco companies," Rob Cunningham, a senior policy analyst at the Canadian Cancer Society, said via email.

Launched in 1998, the class action was considered to be the largest civil case in Canadian history, marking the first time tobacco companies have gone to trial in a civil suit in the country.

The companies were ordered to set aside the deposits in six and seven quarterly payments stretching to mid-2017, while a hearing on the appeal is scheduled for the autumn of 2016.

($1 = 1.3266 Canadian dollars) (Reporting by Alastair Sharp; Editing by Chris Reese and Cynthia Osterman)