The Government of British Columbia and a class of smokers of “light” or “mild” cigarettes brought separate actions against tobacco companies seeking redress for the companies’ failure to inform the public of the harmful nature of various types of cigarettes. The tobacco companies, in turn, issued third-party notices to the Government of Canada, arguing that, if held liable to the plaintiffs, the companies would be entitled to compensation from Canada under various theories of law. The Court held that the companies' pleading disclosed no reasonable cause of action, finding, among other things, that: (1) an alleged duty of care to smokers did not exist; (2) Canada’s relationship with consumers and the tobacco companies was not sufficiently proximate to establish tortious liability; (3) Canada’s public health policy encouraging smokers to switch to low-tar cigarettes did not breach the duty of care; (4) Canada was not liable as a “manufacturer” under the Tobacco Damages and Health Care Costs Recovery Act, under the Negligence Act, or at common law; (5) Canada did not constitute a “supplier” within the meaning of the Business Practices and Consumer Protection Act because Canada did not promote the use of low‑tar cigarettes for commercial purposes; and (6) Canada’s regulation of the tobacco industry was not an implicit promise to indemnify compliance under the narrow doctrine of equitable indemnity.
R. v. Imperial Tobacco Canada Ltd., et al., 2011 SCC 42, Supreme Court of Canada (2011).
Tobacco companies or front groups may challenge any legislative or regulatory measure that affects their business interests. Unlike public interest litigation, these cases seek to weaken health measures. These cases frequently involve the industry proceeding against the government. For example, a group of restaurant owners challenging a smoke free law as unconstitutional.
Governments or insurance agencies may seek reimbursement from the tobacco companies for health care costs related to tobacco. The most famous example is the case brought by individual states in the U.S.A. that resulted in the Master Settlement Agreement.
Measures to regulate the marketing on tobacco packages. This includes both bans on false, misleading, deceptive packaging, as well as required health warnings on packaging.
(See FCTC Art. 11)
Measures to promote cessation of tobacco use and adequate treatment for tobacco dependence.
(See FCTC Art. 14)
Substantive Issues
None
Type of Tobacco Product
None
Limitations regarding the use of quotes The quotes provided here reflect statements from a specific decision. Accordingly, the International Legal Consortium (ILC) cannot guarantee that an appellate court has not reversed a lower court decision which may influence the applicability or influence of a given quote. All quotes have been selected based on the subjective evaluations undertaken by the ILC meaning that quotes provided here may not accurately or comprehensively represent a given court’s opinion or conclusion, as such quotes may have originally appeared alongside other negative opinions or accompanying facts. Further, some quotes are derived from unofficial English translations, which may alter their original meaning. We emphasize the need to review the original decision and related decisions before authoritatively relying on quotes. Using quotes provided here should not be construed as legal advice and is not intended to be a substitute for legal counsel on any subject matter in any jurisdiction. Please see the full limitations at https://www.tobaccocontrollaws.org/about.
"I agree with Canada that considerations related to legislative intent further support the view that Canada does not fall within the definition of “manufacturer”. When the CRA was introduced in the legislature, the Minister responsible stated that “the industry” manufactured a lethal product, and that “the industry” composed of “tobacco companies” should accordingly be held accountable (B.C. Debates of the Legislative Assembly, vol. 20, 4th Sess., 36th Parl., June 7, 2000, at p. 16314). It is plain and obvious that the Government of Canada would not fit into these categories."
"In short, the representations on which the third-party claims rely were part and parcel of a government policy to encourage people who continued to smoke to switch to low-tar cigarettes. This was a “true” or “core” policy, in the sense of a course or principle of action that the government adopted. The government’s alleged course of action was adopted at the highest level in the Canadian government, and involved social and economic considerations. Canada, on the pleadings, developed this policy out of concern for the health of Canadians and the individual and institutional costs associated with tobacco-related disease. In my view, it is plain and obvious that the alleged representations were matters of government policy, with the result that the tobacco companies’ claims against Canada for negligent misrepresentation must be struck out."
"In the Costs Recovery case, the private law claims against Canada for contribution and indemnity based on alleged breaches of a duty of care to smokers must be struck. A third party may only be liable for contribution under the Negligence Act if it is directly liable to the plaintiff, in this case, British Columbia. Here, even if Canada breached duties to smokers, this would have no effect on whether it was liable to British Columbia."
Limitations regarding the use of quotes The quotes provided here reflect statements from a specific decision. Accordingly, the International Legal Consortium (ILC) cannot guarantee that an appellate court has not reversed a lower court decision which may influence the applicability or influence of a given quote. All quotes have been selected based on the subjective evaluations undertaken by the ILC meaning that quotes provided here may not accurately or comprehensively represent a given court’s opinion or conclusion, as such quotes may have originally appeared alongside other negative opinions or accompanying facts. Further, some quotes are derived from unofficial English translations, which may alter their original meaning. We emphasize the need to review the original decision and related decisions before authoritatively relying on quotes. Using quotes provided here should not be construed as legal advice and is not intended to be a substitute for legal counsel on any subject matter in any jurisdiction. Please see the full limitations at https://www.tobaccocontrollaws.org/about.
The Government of British Columbia and a class of smokers of “light” or “mild” cigarettes brought separate actions against tobacco companies seeking redress for the companies’ failure to inform the public of the harmful nature of various types of cigarettes. The tobacco companies, in turn, issued third-party notices to the Government of Canada, arguing that, if held liable to the plaintiffs, the companies would be entitled to compensation from Canada under various theories of law. The Court held that the companies' pleading disclosed no reasonable cause of action, finding, among other things, that: (1) an alleged duty of care to smokers did not exist; (2) Canada’s relationship with consumers and the tobacco companies was not sufficiently proximate to establish tortious liability; (3) Canada’s public health policy encouraging smokers to switch to low-tar cigarettes did not breach the duty of care; (4) Canada was not liable as a “manufacturer” under the Tobacco Damages and Health Care Costs Recovery Act, under the Negligence Act, or at common law; (5) Canada did not constitute a “supplier” within the meaning of the Business Practices and Consumer Protection Act because Canada did not promote the use of low‑tar cigarettes for commercial purposes; and (6) Canada’s regulation of the tobacco industry was not an implicit promise to indemnify compliance under the narrow doctrine of equitable indemnity.