Connect with us

Canada News

Creditor protection given to cigarette maker suspends order to pay billions to victims

Published

on

Now that JTI-Macdonald is under creditor protection, however, the company will not have to disperse any funds to tobacco victims for now. (File Photo by Susanne Nilsson/Flickr, CC BY-SA 2.0)

MONTREAL — The Quebec Council on Tobacco and Health said Monday that smokers who won a recent court victory are being denied justice after an Ontario judge granted cigarette maker JTI-Macdonald Corp. protection from its creditors last week.

JTI-Macdonald was among three companies that lost in the Quebec Court of Appeal March 1. The court upheld a landmark judgment ordering them to pay billions of dollars in damages to Quebec smokers. Now that JTI-Macdonald is under creditor protection, however, the company will not have to disperse any funds to tobacco victims for now.

The Ontario Superior Court decision suspends legal proceedings against all three companies until April 5, even though only JTI-Macdonald sought protection from creditors. Benson & Hedges and Imperial Tobacco made no such request.

The Quebec Council on Tobacco and Health led two class actions against the companies and won in 2015, when Quebec Superior Court Justice Brian Riordan ordered the companies to make payments of more than $15-billion to smokers who either fell ill or were addicted. At the time, the ruling was believed to be the biggest class action award in Canadian history.

Philippe Trudel, one of the lawyers representing tobacco victims in the class action, called the Ontario court’s decision to suspend proceedings against all three companies “unusual.” Mario Bujold, spokesman for the Quebec Council on Tobacco and Health, said the Ontario court’s ruling can be extended beyond April 5 and he worries victims will never see any money.

“Companies are very good at finding strategies to avoid paying damages they were ordered to pay,” Bujold said, adding the court’s decision will be contested.

“The Superior Court in Ontario is suspending the rights recognized by six judges in Quebec,” he said. “It’s unacceptable.”

In a statement released Friday, JTI-Macdonald said it needed to seek protection under the Companies’ Creditors Arrangement Act in order to “protect 500 Canadian jobs and carry on its business operations with minimal disruption.

“We fundamentally disagree with the court decision and are taking all necessary and appropriate measures to defend our lawful business,” it said.

The three companies are also considering appealing the $15-billion judgment rendered against them to the Supreme Court of Canada.

 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Maria in Vancouver

Lifestyle5 days ago

How To Do Christmas & Hanukkah This Year

Christmas 2024 is literally just around the corner! Here in Vancouver, we just finished celebrating Taylor Swift’s last leg of...

Lifestyle1 month ago

Nobody Wants This…IRL (In Real Life)

Just like everyone else who’s binged on Netflix series, “Nobody Wants This” — a romcom about a newly single rabbi...

Lifestyle1 month ago

Family Estrangement: Why It’s Okay

Family estrangement is the absence of a previously long-standing relationship between family members via emotional or physical distancing to the...

Lifestyle3 months ago

Becoming Your Best Version

By Matter Laurel-Zalko As a woman, I’m constantly evolving. I’m constantly changing towards my better version each year. Actually, I’m...

Lifestyle3 months ago

The True Power of Manifestation

I truly believe in the power of our imagination and that what we believe in our lives is an actual...

Maria in Vancouver4 months ago

DECORATE YOUR HOME 101

By Matte Laurel-Zalko Our home interiors are an insight into our brains and our hearts. It is our own collaboration...

Maria in Vancouver4 months ago

Guide to Planning a Wedding in 2 Months

By Matte Laurel-Zalko Are you recently engaged and find yourself in a bit of a pickle because you and your...

Maria in Vancouver5 months ago

Staying Cool and Stylish this Summer

By Matte Laurel-Zalko I couldn’t agree more when the great late Ella Fitzgerald sang “Summertime and the livin’ is easy.”...

Maria in Vancouver6 months ago

Ageing Gratefully and Joyfully

My 56th trip around the sun is just around the corner! Whew. Wow. Admittedly, I used to be afraid of...

Maria in Vancouver6 months ago

My Love Affair With Pearls

On March 18, 2023, my article, The Power of Pearls was published. In that article, I wrote about the history...