Report to the Conference of the Parties on the Implementation of the Framework Convention on Tobacco Control

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Part IV: Legislative, executive, administrative and other measures

• 3. Liability
  
  1. Tobacco Damages and Health Care Costs Recovery Act
  2. Legal Action

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3. Liability

(a) Tobacco Damages and Health Care Costs Recovery Act

There is a growing movement in Canada to enact enabling legislation to permit governments to seek health care cost recovery legislation from the tobacco industry. In 1998, British Columbia became the first jurisdiction in Canada and the Commonwealth to launch a lawsuit against the tobacco industry for the recovery of tobacco-attributable health care costs related to allegations that the industry did not disclose in a timely way what it knew about the effects of its products. The tobacco industry challenged the constitutionality of the legislation. In September 2005, the Supreme Court of Canada unanimously upheld the province's right to sue the tobacco industry and concluded that the  Tobacco Damages and Health Care Costs Recovery Act is constitutional. In September 2006, the British Columbia provincial Court of Appeal held that the BC courts have jurisdiction over foreign tobacco companies named in BC's action.

Since 1998 four other provinces have enacted similar legislation:

New Brunswick (2006): Tobacco Damages and Health Care Costs Recovery Act (Appendix 2-D-2)

Newfoundland and Labrador (2006): Health Care Costs Recovery Act (Appendix 2-E-3)

Nova Scotia (2005): Tobacco Damages and Health-care Costs Recovery Act (Appendix 2-G-3)

Manitoba: Tobacco Damages and Health Care Costs Recovery Act (Appendix 2-C-2)

(b) Legal Action

As well, the federal and a number of provincial governments have initiated legal action against one of the Canadian tobacco manufacturers for its alleged involvement in smuggling activities during the nineties.