Canadian Tobacco Case Heads to Supreme Court

Tobacco companies contend that the federal government should be liable for smoking-related health costs.

May 24, 2010

OTTAWA, Ontario - The Canadian Supreme Court will decide if the Canadian government could be held liable for smoking-related health expenses, the Montreal Gazette reports.

Tobacco companies say the government should shoulder its fair share of the costs because it has been a "senior partner" in the business. The companies argue that Agriculture Canada researched and regulated tobacco, gathered billions in taxes and made sure tobacco stayed legal even though it knew about the links between smoking and cancer.

For example, the government assisted in the development and promotion of mild and light cigarettes, starting in the late 1960s. "The federal government has been a senior partner of the tobacco industry for decades and they have known about the risks associated with tobacco for more than 50 years," said Eric Gagnon, an Imperial Tobacco spokesman. "It is only natural for them to be held accountable also."

The federal government wants the Supreme Court to reverse British Columbia Court of Appeal decision in December that said the government could be added to the lawsuit, the first legal challenge in which provinces are trying to get health care costs. "The decision would substantially expand the sphere of duties owed by government in its response to public-health risks posed by a commercially supplied product," wrote the Justice Department in its Supreme Court application.

The Supreme Court decision would likely allow other suits against tobacco companies to include the federal government, such as ones in Ontario, New Brunswick, Manitoba and Quebec.

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