Canadian firms overturn C$1.1 billion court order

Imperial Tobacco Canada, British American Tobacco’s Canadian subsidiary and the Canadian subsidiaries of Philip Morris International and Japan Tobacco International, yesterday had their request to cancel a C$1.1 billion provisional execution order granted by the Quebec Court of Appeal.

Three Quebec Court of Appeal judges unanimously cancelled the order after Imperial Tobacco Canada, Rothmans, Benson & Hedges, and JTI-Macdonald had argued that there was no legal basis for the provisional execution order.

BAT, in a note posted on its website, said the provisional execution order had been imposed by the Superior Court of Quebec as part of a C$15.6 billion judgement in two class action cases issued on June 1.

“We are pleased to see Imperial Tobacco Canada’s arguments prevail so convincingly with the cancellation of an unprecedented and legally unjustified provisional execution order,” said Jerome Abelman, BAT’s group director, Legal & External Affairs.

“Imperial Tobacco Canada will now focus on its appeal at the Quebec Court of Appeal against the original Superior Court of Quebec Class Action judgement issued on 1st June 2015 which the company argues ignored the reality that both adult consumers and governments have known about the risks associated with smoking for decades.

“Imperial Tobacco Canada has informed us that it is concentrating on continuing its appeal against the substantive elements of the original ruling and that the team is confident its legal arguments will ultimately prevail.”

BAT, which was not a party to the proceeding and is not a party to the original judgement, said the Court of Appeal process was expected to conclude within the next two-to-three years, though there could be a further appeal to the Supreme Court of Canada.