From: Subject: Tobacco Damages and Health-care Costs Recovery Act Date: Wed, 1 Aug 2007 09:55:29 -0400 MIME-Version: 1.0 Content-Type: multipart/related; type="text/html"; boundary="----=_NextPart_000_004E_01C7D422.17ED4230" X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.3138 This is a multi-part message in MIME format. ------=_NextPart_000_004E_01C7D422.17ED4230 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.gov.ns.ca/legislature/legc/bills/59th_1st/3rd_read/b222.htm Tobacco Damages and Health-care Costs Recovery = Act

BILL NO. 222

(as passed, with amendments)

=20

1st Session, 59th General Assembly
Nova Scotia
54 Elizabeth = II, 2005=20



Government Bill=20



Tobacco Damages and Health-care Costs Recovery Act

CHAPTER 46 = OF THE=20 ACTS OF 2005



The Honourable Michael G. Baker, Q.C.
Minister of Justice =



First=20 Reading: October 13, 2005 (LINK TO BILL AS = INTRODUCED)=20

Second Reading: October 17, 2005=20

Third=20 Reading: November 1, 2005 (WITH COMMITTEE = AMENDMENTS)=20

Royal Assent: December 8, 2005=20

=20

An Act to Recover Damages
and Health-care Costs
from = Manufacturers of=20 Tobacco

Be it enacted by the Governor and Assembly as follows:

1 This Act may = be cited as=20 the Tobacco Damages and Health-care Costs Recovery Act.

2 (1) In this Act,

(a) "cost of health-care = benefits" means=20 the sum of

(b) "disease" = includes general=20 deterioration of health;

(c) "exposure" means any = contact with, or=20 ingestion, inhalation or assimilation of, a tobacco product, including = any smoke=20 or other by-product of the use, consumption or combustion of a tobacco=20 product;

(d) "health-care benefits" = means

(e) "insured = person" means

(f) "joint venture" = means an=20 association of two or more persons, if

(g) "manufacture" = includes, for a=20 tobacco product, the production, assembly or packaging of the tobacco = product;

(h) "manufacturer" means a = person who=20 manufactures or has manufactured a tobacco product and includes a person = who=20 currently or in the past

(i) "person" = includes a=20 trust, joint venture or trade association;

(j) "promote" or "promotion" = includes, for=20 a tobacco product, the marketing, distribution or sale of the tobacco = product=20 and research with respect to the tobacco product;

(k) "tobacco product" means = tobacco and=20 any product that includes tobacco;

(l) "tobacco-related disease" = means=20 disease caused or contributed to by exposure to a tobacco product;

(m) "tobacco-related wrong" = means

(n) "type of = tobacco product"=20 means one or a combination of the following tobacco products:

(2) The definition of = "manufacturer"=20 in subsection (1) does not include

(a) an individual;

(b) a person who

(c) a person = who

(3) For the=20 purpose of subsection (2), a person is related to another person if, = directly or=20 indirectly, the person is

(a) an affiliate, within the = meaning of=20 the Companies Act, of the other person; or

(b) an affiliate = of the other=20 person or an affiliate of an affiliate of the other person.

(4) For the purpose of = clause=20 (3)(b), a person is deemed to be an affiliate of another person if the=20 person

(a) is a corporation and the = other person,=20 or a group of persons not dealing with each other at arm's length of = which the=20 other person is a member, owns a beneficial interest in shares of the=20 corporation

(b) is = a partnership,=20 trust or joint venture and the other person, or a group of persons not = dealing=20 with each other at arm's length of which the other person is a member, = has an=20 ownership interest in the assets of that person that entitles the other = person=20 or group to receive at least fifty per cent of the profits or at least = fifty per=20 cent of the assets on dissolution, winding up or termination of the = partnership,=20 trust or joint venture.

(5) For the = purpose of=20 clause (3)(b), a person is deemed to be an affiliate of another person = if the=20 other person, or a group of persons not dealing with each other at arm's = length=20 of which the other person is a member, has any direct or indirect = influence=20 that, where exercised, would result in control in fact of that person = except if=20 the other person deals at arm's length with that person and derives = influence=20 solely as a lender.

(6) For the purpose of = determining=20 the market share of a defendant for a type of tobacco product sold in = the=20 Province, the court shall calculate the defendant's market share for the = type of=20 tobacco product by the following formula:

dm

dms =3D ------ X 100%

MM

3 (1) Her = Majesty in=20 right of the Province has a direct and distinct action against a = manufacturer to=20 recover the cost of health-care benefits caused or contributed to by a=20 tobacco-related wrong.

(2) An = action under=20 subsection (1) is brought by Her Majesty in right of the Province in Her = own=20 right and not on the basis of a subrogated claim.

(3) In an = action under=20 subsection (1), Her Majesty in right of the Province may recover the = cost of=20 health-care benefits whether or not there has been any recovery by other = persons=20 who have suffered damage caused or contributed to by the tobacco-related = wrong=20 committed by the defendant.

(4) In an action under = subsection=20 (1), Her Majesty in right of the Province may recover the cost of = health-care=20 benefits

(a) for particular individual = insured=20 persons; or

(b) on an = aggregate basis, for=20 a population of insured persons as a result of exposure to a type of = tobacco=20 product.

(5) Where Her Majesty in = right of=20 the Province seeks in an action under subsection (1) to recover the cost = of=20 health-care benefits on an aggregate basis,

(a) it is not necessary to

(b) the health-care = records and=20 documents of particular individual insured persons or the documents = relating to=20 the provision of health-care benefits for particular individual insured = persons=20 are not compellable except as provided under a rule of law, practice or=20 procedure that requires the production of documents relied on by an = expert=20 witness;

(c) a person is not = compellable to answer=20 questions with respect to the health of, or the provision of health-care = benefits for, particular individual insured persons;

(d) notwithstanding clauses = (b) and (c),=20 on application by a defendant, the court may order discovery of a = statistically=20 meaningful sample of the documents referred to in clause (b) and the = order must=20 include directions concerning the nature, level of detail and type of=20 information to be disclosed; and

(e) where an order is = made under=20 clause (d), the identity of particular individual insured persons must = not be=20 disclosed and all identifiers that disclose or may be used to trace the = names or=20 identities of any particular individual insured persons must be deleted = from any=20 documents before the documents are disclosed.

4 (1) In an action under = subsection=20 3(1) for the recovery of the cost of health-care benefits on an = aggregate basis,=20 subsection (2) applies if Her Majesty in right of the Province proves, = on a=20 balance of probabilities, that, in respect of a type of tobacco = product,

(a) the defendant breached a = common law,=20 equitable or statutory duty or obligation owed to persons in the = Province who=20 have been exposed or might become exposed to the type of tobacco = product;

(b) exposure to the type of = tobacco=20 product can cause or contribute to disease; and

(c) during all or = part of the=20 period of the breach referred to in clause (a), the type of tobacco = product,=20 manufactured or promoted by the defendant, was offered for sale in the=20 Province.

(2) Subject to = subsections (1) and=20 (4), the court shall presume that

(a) the population of insured = persons who=20 were exposed to the type of tobacco product, manufactured or promoted by = the=20 defendant, would not have been exposed to the product but for the breach = referred to in clause (1)(a); and

(b) the exposure = described in=20 clause (a) caused or contributed to disease or the risk of disease in a = portion=20 of the population described in clause (a).

(3) Where the = presumptions under=20 clauses (2)(a) and (b) apply,

(a) the court shall determine = on an=20 aggregate basis the cost of health-care benefits provided after the date = of the=20 breach referred to in clause (1)(a) resulting from exposure to the type = of=20 tobacco product; and

(b) each defendant = to which=20 the presumptions apply is liable for the proportion of the aggregate = cost=20 referred to in clause (a) equal to its market share for the type of = tobacco=20 product.

(4) The amount = of a=20 defendant's liability assessed under clause (3)(b) may be reduced, or = the=20 proportions of liability assessed under clause (3)(b) readjusted amongst = the=20 defendants, to the extent that a defendant proves, on a balance of=20 probabilities, that the breach referred to in clause (1)(a) did not = cause or=20 contribute to the exposure referred to in clause (2)(a) or to the = disease or=20 risk of disease referred to in clause (2)(b).

5 (1) Two or more = defendants in an=20 action under subsection 3(1) are jointly and severally liable for the = cost of=20 health-care benefits if

(a) those defendants jointly = breached a=20 duty or obligation described in the definition of "tobacco-related = wrong" in=20 subsection 2(1); and

(b) as a = consequence of the=20 breach described in clause (a), at least one of those defendants is held = liable=20 in the action under subsection 3(1) for the cost of those health-care=20 benefits.

(2) For purpose of an = action under=20 subsection 3(1), two or more manufacturers, whether or not they are = defendants=20 in the action, are deemed to have jointly breached a duty or obligation=20 described in clause 2(1)(m) if

(a) one or more of those = manufacturers are=20 held to have breached the duty or obligation; and

(b) at common law, in equity = or under an=20 enactment those manufacturers would be held

6 Statistical = information=20 and information derived from epidemiological, sociological and other = relevant=20 studies, including information derived from sampling, is admissible as = evidence=20 for the purpose of establishing causation and quantifying damages or the = cost of=20 health-care benefits respecting a tobacco-related wrong in an action = brought

(a) by or on behalf of a = person in the=20 person's own name; or

(b) by Her Majesty in = right of=20 the Province under subsection 3(1).

7 (1) No action that is = commenced=20 within two years after the coming into force of this Section by

(a) Her Majesty in right of = the=20 Province;

(b) a person, on his or her = own behalf or=20 on behalf of a class of persons; or

(c) a personal representative = of a=20 deceased person on behalf of the spouse, parent or child, as defined in = the=20 Fatal Injuries Act, of the deceased person,

for damages, or the = cost of=20 health-care benefits, alleged to have been caused or contributed to by a = tobacco-related wrong is barred under the Limitation of Actions Act or = by a=20 limitation period under any other enactment.

(2) Any action = described in=20 subsection (1) for damages alleged to have been caused or contributed to = by a=20 tobacco-related wrong is revived if the action was dismissed before the = coming=20 into force of this Section merely because it was held by a court to be = barred or=20 extinguished by the Limitation of Actions Act or a limitation period in = any=20 other enactment.

8 (1) This = Section=20 applies to an action for damages, or the cost of health-care benefits, = alleged=20 to have been caused or contributed to by a tobacco-related wrong other = than an=20 action for the recovery of the cost of health-care benefits on an = aggregate=20 basis.

(2) Where a plaintiff is = unable to=20 establish which defendant caused or contributed to the exposure = described in=20 clause (b) and, as a result of a breach of a common law, equitable or = statutory=20 duty or obligation,

(a) one or more defendants = caused or=20 contributed to a risk of disease by exposing persons to a type of = tobacco=20 product; and

(b) the plaintiff has been = exposed to the=20 type of tobacco product referred to in clause (a) and suffers disease as = a=20 result of the exposure,

the court may find = each=20 defendant that caused or contributed to the risk of disease liable for a = proportion of the damages or cost of health-care benefits incurred equal = to the=20 proportion of its contribution to that risk of disease.

(3) The court may = consider the=20 following in apportioning liability under subsection (2):

(a) the length of time a = defendant engaged=20 in the conduct that caused or contributed to the risk of disease;

(b) the market share the = defendant had for=20 the type of tobacco product that caused or contributed to the risk of=20 disease;

(c) the degree of toxicity of = any toxic=20 substance in the type of tobacco product manufactured or promoted by a=20 defendant;

(d) the amount spent by a = defendant on=20 promoting the type of tobacco product that caused or contributed to the = risk of=20 disease;

(e) the degree to which a = defendant=20 collaborated or acted in concert with other manufacturers in any conduct = that=20 caused, contributed to or aggravated the risk of disease;

(f) the extent to which a = defendant=20 conducted tests and studies to determine the risk of disease resulting = from=20 exposure to the type of tobacco product;

(g) the extent to which a = defendant=20 assumed a leadership role in manufacturing the type of tobacco = product;

(h) the efforts a defendant = made to warn=20 the public about the risk of disease resulting from exposure to the type = of=20 tobacco product;

(i) the extent to which a = defendant=20 continued manufacture or promotion of the type of tobacco product after = it knew=20 or ought to have known of the risk of disease resulting from exposure to = the=20 type of tobacco product;

(j) affirmative steps that a = defendant=20 took to reduce the risk of disease to the public; and

(k) other factors = considered=20 relevant by the court.

9 (1) This = Section does=20 not apply to a defendant in respect of whom the court has made a finding = of=20 liability under Section 8.

(2) A = defendant who is=20 found liable for a tobacco-related wrong may commence, against one or = more of=20 the defendants found liable for that wrong in the same action, an action = or=20 proceeding for contribution toward payment of the damages or the cost of = health-care benefits caused or contributed to by that wrong.

(3) = Subsection (2)=20 applies whether or not the defendant commencing an action or proceeding = under=20 that subsection has paid all or any of the damages or the cost of = health-care=20 benefits caused or contributed to by the tobacco-related wrong.

(4) In an = action or=20 proceeding described in subsection (2), the court may apportion = liability and=20 order contribution among each of the defendants in accordance with the=20 considerations listed in clauses 8(3)(a) to (k).

10 (1) The Governor in = Council may=20 make regulations

(a) prescribing a form of = tobacco for the=20 purpose of subclause 2(1)(n)(ix);

(b) providing for = administrative and=20 procedural matters for which no express, or only partial, provision has = been=20 made;

(c) defining any word or = expression used=20 in this Act and not defined in this Act;

(d) respecting any = matter or=20 thing that the Governor in Council considers advisable or necessary to = carry out=20 effectively the intent and purpose of this Act.

(2) The = exercise by the=20 Governor in Council of the authority contained in subsection (1) is = regulations=20 within the meaning of the Regulations Act.

11 When brought = into force=20 under Section 12, a provision of this Act has the retroactive effect = necessary=20 to give the provision full effect for all purposes including allowing an = action=20 to be brought under subsection 3(1) arising from a tobacco-related = wrong,=20 whenever the tobacco-related wrong occurred.

12 This Act = comes into=20 force on such day as the Governor in Council orders and declares by=20 proclamation.

=20

This page and its contents published by the Office of = the=20 Legislative Counsel, Nova Scotia House of Assembly, and =A9 2005 Crown = in right of=20 Nova Scotia. Created December 12, 2005. 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