Justice and Consumer Affairs / Health

Lawyers retained for tobacco lawsuit (07/09/12)

NB 1138

Sept. 12, 2007

FREDERICTON (CNB) - The Province of New Brunswick has retained a consortium
of lawyers to sue tobacco companies for health-care costs of tobacco-related
illnesses.

"I am pleased to say that we are moving ahead on our commitment in the
Charter for Change to hold tobacco companies accountable to both New
Brunswick families and to taxpayers for the health care costs involved in
dealing with the enormous physical, emotional and financial impact of
smoking-related illnesses," Justice and Consumer Affairs Minister T. J. Burke
said.

The consortium includes two New Brunswick lawyers: Philippe J. Eddie, Q.C. of
Moncton and Chris Correia with Correia and Collins in Saint John. In addition,
it includes Siskinds LLP, Fasken Martineau DuMoulin, and Bennett Jones from
Ontario. Two law firms from the United States that has been involved in
settlements of a number of state lawsuits are also part of the consortium -
Richardson, Patrick, Westbrook and Brickman of South Carolina and Martin and
Jones of North Carolina.

The Province announced last December its intention to sue and issued a
request for proposals (RFP) with a Jan. 31, 2007, deadline for a qualified law
firm or consortium of law firms to represent the Province and provide advice in
its legal action against tobacco companies. There were four qualified
submissions to the RFP.

"I wish to assure New Brunswickers that our government will continue to do
everything it can to prevent the needless pain and suffering caused by tobacco
use," Health Minister Michael Murphy said. "Tobacco companies certainly know the
pain and suffering caused by the use or exposure to their products, and we
believe it is time they are held accountable."

Under the terms of the agreement, the consortium has been retained on a
contingency fee basis, which means the Province will not pay any legal costs up
front and the consortium will recover its legal fees and disbursements as a
percentage of the actual amounts recovered in the litigation.

The fee schedule has been broken down into four stages:

State 1: If a settlement is reached during the initial stage after their
retainer, the lawyers will be paid 12 per cent of any settlement reached.

Stage 2: If a settlement is reached after issuance of the statement of claim,
the consortium's percentage increases to18 per cent.

Stage 3: If a settlement is awarded after trial, the percentage rises to 20
per cent.

Stage 4: If a settlement is awarded on appeal, consortium will receive 22 per
cent.

07/09/12

MEDIA CONTACTS: Valerie Kilfoil, Justice and Consumer Affairs, 506-453-6543;
Johanne LeBlanc, Health, 506-457-3513.

07/09/12

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