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AUSTRALIA:Hundred to take action again tobacco firms() (fwd)
Hundred to take action again tobacco firms
by MICHAEL MCKENNA The Courier Mail
Australian News Network (9127)
Date: Thursday, 3/4/99
AUSTRALIA'S largest class action will be launched within weeks against the
country's tobacco companies, seeking damages which could exceed $1billion.
A damages claim will be filed in the Federal Court on behalf of several
hundred Australians with smoking- related illnesses.
It will be the first of several damages claims being planned against
Australia's three major tobacco companies – WD&HO Wills, Rothmans and
Philip Morris.
The class action follows last year's $US206billion settlement between four
United States tobacco companies and 46 states who sought damages for the
health- related costs of smoking.
The Australian Plaintiff Lawyers Association, which is planning the class
action, said it was also lobbying state governments to set-up a "Tobacco
Commission".
Under a proposed Tobacco Control Act, a levy would be imposed against
tobacco companies and then used in anti-smoking campaigns and for
compensation awarded to smokers by the commission.
Australia's first class action against the tobacco companies will allege a
breach in duty to produce safe products and a failure to warn consumers of
the dangers of smoking.
Sydney barrister John Rowe said a pool of several hundred claimants had
been registered, with "a number" coming from Queensland.
Mr Rowe said he believed litigation would last a minimum of three years
and a settlement of more than $1billion was "a very achievable figure".
He said the best profile of a successful claimant would be someone who
took up smoking as a teenager and had been diagnosed with a related
illness within the past three years.
"The possible damages will vary from individual to individual, depending
on each person's injury, economic loss and cost of treatment," he said.
"The case will probably last three years, maybe longer, depending on how
the judge manages it. But I expect the companies will delay the case and
run a war of attrition to wear us down."
Australian Plaintiff Lawyers Association spokesman Neil Francey confirmed
there would be several actions launched.
Mr Francey said the APLA also had begun lobbying the Queensland Government
to enact anti-smoking legislation.
"We have approached the Queensland Attorney-General (Matt Foley) about new
legislation, which would involve setting-up a tobacco control commission
and disease tribunal," he said.
"Mr Foley's office was receptive to the proposal so far as setting up a
meeting to discuss it in detail with his senior adviser."
But a spokesman for Mr Foley's office said he was not "working on setting
up a tobacco commission".
The Federal Government yesterday confirmed it had been told it could not
launch its own action against tobacco companies because of the amount of
tax it collected.
WD&HO Wills said Australian smokers contributed more than $4billion in
taxes each year, more than the annual sum raised by the Medicare levy.
A Philip Morris spokesman said the company would be defending any class
action for damages.
"We are aware of the reports and in the event of an action we will defend
it. But nothing has been filed in the court, and so we have no further
comment," he said. ------------------------------------------------------
8:31 AM on 3/4/99