From: Subject: Summary of BC's Statement of Claim in Legal Action Against Tobacco Companies Date: Fri, 27 Jul 2007 12:39:47 -0400 MIME-Version: 1.0 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Content-Location: http://www2.news.gov.bc.ca/archive/pre2001/2001/jan2001/lawsuit_summary.asp X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.3138 Summary of BC's Statement of Claim in Legal Action = Against Tobacco Companies These are historic documents for = informational purposes=20 only, and do not necessarily reflect the policies and priorities of the=20 government of the day.


SUMMARY OF B.C.=92S STATEMENT OF CLAIM =

IN LEGAL ACTION AGAINST TOBACCO = COMPANIES

Parties

1. The Government of British Columbia is suing = the three=20 principal Canadian manufacturers of cigarettes sold in Canada and = British=20 Columbia, Imperial Tobacco Canada Limited; Rothmans, Benson & = Hedges=20 Inc.; and JTI-Macdonald Corp. The Government is also suing the = Canadian=20 Tobacco Manufacturers=92 Council, the tobacco industry=92s trade = association=20 in Canada.

2. Each of the Canadian manufacturers is a = member of a=20 multinational corporate group. The Government of British Columbia = is also=20 suing companies within these multinational groups on the grounds = that they=20 directed and co-ordinated the wrongful activities of the Canadian=20 defendants. These "Lead Companies" include:

(a) British American Tobacco (Investments) = Limited and=20 B.A.T Industries p.l.c., two English companies, with respect to = the=20 activities of Imperial Tobacco Canada Ltd.;

(b) Philip Morris Incorporated and Philip = Morris=20 International, Inc., U.S. companies, with respect to the = activities of=20 Benson & Hedges (Canada) Ltd., and later Rothmans, Benson = &=20 Hedges, Inc.;

(c) R.J. Reynolds Tobacco Company and R.J. = Reynolds=20 Tobacco International, Inc., U.S. companies, with respect to the=20 activities of the company now known as JTI-Macdonald Corp. since = 1974;=20 and

(d) Various members of the Rothmans = International group=20 of companies based in Europe, with respect to the activities of = the=20 Canadian Rothmans companies including Rothmans, Inc. and, since = 1986, with=20 respect to the activities of Rothmans, Benson & Hedges,=20 Inc.

3. In some cases these same companies also = manufactured=20 and promoted cigarettes sold in British Columbia.

Allegations

4. The Government=92s Statement of Claim = alleges that=20 cigarettes are a dangerous product which, when used as intended, = cause=20 illness and death in large numbers of smokers. The magnitude of = the health=20 catastrophe caused by smoking cannot be overstated: fifty percent = of=20 smokers die from tobacco related disease. The Government also = alleges=20 that:

(a) Cigarettes contain nicotine, which is an = addictive=20 substance that affects the brain and other body systems.

(b) Exposure to nicotine, tar and other = substances in=20 cigarettes causes diseases of the lung, numerous types of cancer,=20 cardiovascular diseases, and a large number of other ailments.

(c) By the 1950s, the tobacco companies knew or = ought to=20 have known that smoking cigarettes can cause disease in smokers = and that=20 the nicotine in cigarettes is addictive.

(d) The tobacco companies had a duty to make = their=20 products safer and to warn consumers of the risks associated with = smoking.=20 Although the tobacco companies conducted research into safer = cigarettes,=20 such products were not marketed to consumers.

(e) The tobacco companies marketed cigarettes = which were=20 described as =91light=92, =91mild=92 or =91ultra-light=92, in an = attempt to reassure=20 smokers and prevent them from quitting, when they knew that these=20 cigarettes were in fact just as hazardous as "regular" cigarettes, = and=20 were not in any way a safer alternative.

(f) Despite their knowledge to the contrary, = the tobacco=20 companies publicly stated that there was no proof that smoking = caused=20 disease or that cigarettes are addictive.

(g) The tobacco companies failed to provide = consumers=20 with adequate warnings of the risks of smoking their products.

(h) The tobacco companies have engaged in = marketing=20 activities designed to neutralize and negate the warnings provided = to=20 consumers by governments and public health = authorities.

5. More than eighty percent of smokers begin to = smoke=20 before they are 19 years of age. With respect to children, the = government=20 alleges that:

(a) The tobacco companies knew that it was = contrary to=20 law and public policy to sell cigarettes to children. The tobacco=20 companies failed to take any reasonable measures to ensure that = children=20 did not smoke their cigarettes.

(b) In fact the tobacco companies have targeted = children=20 with their advertising, promotional and marketing campaigns.

(c) Moreover, the tobacco companies put = cigarettes into a=20 chain of distribution which they knew would result in those = cigarettes=20 being smuggled back into Canada and sold on the black market in = British=20 Columbia, knowing that to do so would make more cigarettes = available to=20 children and would subvert the government=92s efforts to protect = them from=20 addiction and tobacco related disease.

6. The Government alleges that since the 1950s = the=20 tobacco companies have falsely represented that:

    • smoking has not been shown to cause any known disease;

    • they were aware of no credible research establishing a link = between=20 smoking and disease;

    • cigarettes are not addictive;

    • smoking is merely a habit or custom as opposed to an = addiction;=20

    • they did not manipulate nicotine levels in their = cigarettes;

    • they did not include substances in their cigarettes = designed to=20 increase the bioavailability of nicotine;

    • they misrepresented the actual intake of tar and nicotine=20 associated with smoking their cigarettes;

    • certain of their cigarettes, such as "low tar" and "light" = brands=20 were safer than other cigarettes; and

    • smoking is consistent with a healthy = lifestyle.

7. The Government alleges that, since the = 1950=92s, the=20 tobacco companies have, with and through the CTMC, conspired to=20 disseminate false and misleading information about the risks of = smoking to=20 consumers and to suppress and conceal research regarding the = health risks=20 of cigarettes. This conspiracy was conducted on an unprecedented = scale at=20 both the national and international levels through a myriad of = formal and=20 informal organizations, councils and committees, and involved = unlawful=20 agreements both within and among the international corporate = groups. This=20 conspiracy is ongoing.

Summary

8. To summarize, the government will argue that = the=20 tobacco companies:

    • have known for many years that cigarettes can cause disease = and=20 death and are addictive;

    • failed to warn consumers of the dangers of smoking;

    • marketed "light" cigarettes as safer when they knew that = they were=20 not;

    • targeted children in their advertising and marketing = practices;=20

    • conspired to suppress research into the risks of smoking = and=20 conspired to neutralize and negate public warnings regarding = the risks=20 of smoking, and

    • are therefore responsible for the health care costs = associated with=20 smoking.

9. In British Columbia the government has for = many years=20 incurred the costs of treating tobacco related diseases, and will = continue=20 to pay for the consequences of the tobacco related wrongs for = years to=20 come. The government now seeks to recover these health care costs = from the=20 tobacco companies.

[Back]