[Intl-tobacco] Tobacco co's respond to British Columbia suit

[Robert Weissman]

Victoria vs. tobacco firms: The gloves are off / Companies respond with legal
action of their own
by Jim Beatty and Mike Howell / Sun Legislature Bureau
Source: Vancouver Sun, Thursday, 1/25/01

VICTORIA -- In relaunching what may be the biggest lawsuit in Canadian
history, the B.C. government on Wednesday claimed tobacco companies
attempted to addict children by flooding British Columbia's black market
with cheap cigarettes.

The lawsuit, which may seek as much as $10 billion in damages from a host
of tobacco companies, claims the Canadian tobacco industry sold cigarettes
to unnamed third parties in the U.S. which then flooded the B.C. black
market with cheap cigarettes.

While the allegation has been heard before in Ontario and Quebec, it is
new to B.C.'s court case, which also makes a number of other claims.

"More and more children were illegally sold cigarettes," Attorney-General
Graeme Bowbrick told reporters Wednesday. "Tobacco companies misled the
public about the dangers of smoking."

The government lawsuit essentially attempts to recoup the health-care
costs caused by smoking. The government says the tobacco industry targeted
children, supported smugglers, suppressed medical information about its
products and sold "light" cigarettes knowing they would deliver the same
amount of tar and nicotine as regular cigarettes.

The government says smoking-related illnesses cost B.C. $500 million each
year.  Over the past 50 years, smoking-related health problems could total
$10 billion or more.

But as B.C. launched its suit Wednesday, the tobacco industry went on the
counter-offensive by launching legal action against the government
claiming the legislation on which the case is based is unconstitutional.

"The government is suing the companies for doing exactly what it wants
them to do: that is selling cigarettes in this province under the rules
and regulations set by both the provincial and federal governments," said
David Laundy, vice-president for Western Canada of the Canadian Tobacco
Manufacturers' Council.

"It is interesting to note that at no time has the government asked the
companies to stop doing this. This lawsuit is the height of hypocrisy..."

Laundy described the government's allegations regarding cigarettes being
sold by tobacco companies to a third party as "a new wrinkle.

"We categorically deny that accusation," he said.

Laundy listed five reasons the tobacco industry says the government's
lawsuit "abuses the process of our courts and violates the constitution."

They include:

¥ It interferes with the independence of the judiciary by enabling
politicians to tell judges what to do.

¥ The government has given itself the power to sue for costs it claims
relate to disease possibly caused by the use of tobacco. Yet the
government does not have to name any individual who has allegedly suffered
such disease, prove the cause of the disease or that health care was
provided to that individual.

¥ The government has denied the defendants the right and the ability to
gather the evidence they need to defend themselves.

¥ The legislation rewrites history. Conduct that was legal previously is
now made retroactively illegal.

¥ The government names in its lawsuit large, multi-national companies
which have never done business in B.C.

Both sides admit the legal battle is likely to drag on for years, costing
millions in legal fees.

Laundy said the B.C. government collects the "lion's share" of tobacco
revenues, about half a billion dollars per year. He said spending millions
of taxpayers' dollars and industry dollars "to pursue meritless court
cases that will take years and years to finally determine seems foolish."

Laundy said the tobacco industry is not interested in an out-of-court
settlement with the government.

"We believe that the allegations contained in this lawsuit are totally
untrue, and we intend to fight them right up to the highest court of the
land, if we have to," he said.

Lawyer Elliot Myers of Vancouver law firm Bull, Housser and Tupper, said:
"It's probably the biggest lawsuit in Canada and it takes a lot of work."

The government is paying 12 lawyers, including former B.C. Supreme Court
justice Tom Berger, to work on the case.

But Bowbrick refused to reveal how much the government is spending on the
lawsuit.

"I'm not prepared to disclose the legal costs," he said. "That would be
detrimental to the case."

The B.C. government first introduced its anti-tobacco legislation in 1997
but its efforts since then have been frustrated by technical errors.

In February, the B.C. Supreme Court struck down the legislation as
unconstitutional because it improperly sought damages from U.S. parent
companies.

The new legislation will target only the Canadian subsidiaries of the
tobacco giants, those which conduct business in B.C. They include Imperial
Tobacco Canada, Rothmans, Benson & Hedges, JTI-Macdonald Corp. and Philip
Morris International.

B.C. Liberal critic Mike de Jong said his party endorses the concept of
holding the tobacco industry to account but has little confidence the NDP
government is doing it properly.

"If you're asking me if I have a lot of confidence that they've got it
right, the answer is no and that's based on what we've seen in the past."

Health Minister Corky Evans, who has been addicted to cigarettes since he
was 12, said it is important for the government to fight the big cigarette
makers.

"I see this as a consumer-protection issue. We would not let someone
advertise and sell automobiles in British Columbia that exploded and
burned them up," he said. "I find nicotine addiction is among the most
insidious diseases in our society."

Dr. Richard Stanwick, medical officer of health for the capital region,
also endorsed the government's lawsuit.

"We're talking about a product that probably kills 50,000 Canadians every
year.  It's the number-one cause of preventable death. To ask the
companies to pay for the injuries they are causing is reasonable."

Rob Cunningham, senior policy analyst with the Canadian Cancer Society,
praised the B.C. government for relaunching the lawsuit.

Cunningham said the B.C. government's initial lawsuit has motivated other
provinces, including Newfoundland, to pursue legal action against the
tobacco industry.

Over the years, Cunningham said the tobacco industry has continued to
advertise smoking, particularly to children and women -- and denied the
health effects.

"The tobacco industry needs to be held accountable before the law," he
said, adding that an estimated 45,000 Canadians per year die of
smoking-related illnesses.

Outside Vancouver's Metropolitan Hotel, where Laundy spoke to reporters, a
group of anti-smoking advocates held a small demonstration.

Hugh Lindor, a member of Airspace, a non-smokers' rights group, said he
was there to remind the industry and the passing public of the dangers
related to smoking.

"We have to keep reminding them how bad smoking is for people," said
Lindor as another member of his group dressed in a Grim Reaper's costume
paced back and forth in front of the hotel.