Imperial Tobacco reports it has initiated discussions with provinces and class action representatives

There are now only 2 days left before the a Toronto judge again assesses whether tobacco companies can use the Companies Creditors Arrangement Act to avoid paying compensation to injured Quebec smokers.

Some of the documents filed in court last week are only now beginning to appear on the web-sites maintained by the monitors in the CCAA proceedings. The Monitor for Imperial Tobacco (FTI Consulting) seems to take longer than the others, which is why the requests that Imperial Tobacco will be making are just now being circulated.

In its Motion dated March 29 , Imperial Tobacco includes a draft order it wants the court to adopt. In addition to asking for a 10 week extension to the stay (until June 28th, 2019), it is also asking for the stay to be expanded to new categories of legal action. (see extract pasted below).

But more interesting was information filed by Eric Thauvette (Imperial Tobacco's CFO) that talks between the parties have already begun. By his account, ITL lawyer  Marc Wasserman met with most of the provinces and also representatives of the Quebec class actions. The only province which did not meet with him was Quebec, which so far has been keeping a very low profile in the CCAA process. (It has not even asked to be on the 'service list' to receive updates on events).

Marc Wasserman, Osler

And how did those meetings between warring parties go? According to Mr. Thauvette, they were 'frank and open'.

"The Applicants' meetings with counsel for the Tobacco Litigation plaintiffs were productive with a frank and open exchange of views, including with respect to the Initial Order and the CCAA proceedings. The Applicants agreed to consider matters raised by counsel for the Tobacco Litigation plaintiffs and to move forward on a consensual basis to the extent possible. The Applicants intend to continue this dialogue with a view to developing a framework for future discussions and, ultimately, a plan of compromise or arrangement for the benefit of all stakeholders."



Imperial Tobacco's requested change to the stay of proceedings

March 12 Order	March 29 requested order
19. THIS COURT ORDERS that, during the Stay Period, no Proceeding in Canada that relates in any way to a Tobacco Claim or to the Applicants, the Business or the Propefty, including the Pending Litigation, shall be commenced, continued or take place against or in respect of any member of the BAT Group except with the written consent of the Applicants and the Monitor, or with leave of this Court, and any and all such Proceedings currently underway or directed to take place against or in respect of any member of the BAT Group are hereby stayed and suspended pending further Order of this Court	19. THIS COURT ORDERS that, during the Stay Period, (i) none of the Pending Litigation or any Proceeding in relation to any other Tobacco Claim shall be commenced, continued, or take place against or in respect of any Person named as a defendant or respondent in any of the Pending Litigation (such Persons the “Other Defendants”); and (ii) no Proceeding in Canada that relates in any way to a Tobacco Claim or to the Applicants, the Business or the Property shall be commenced, continued or take place against or in respect of any member of the BAT Group except, in either case, with the written consent of the Applicants and the Monitor, or with leave of this Court, and any and all such Proceedings currently underway or directed to take place against or in respect of the Other Defendants or any member of the BAT Group, or affecting the Business or the Property or the funds deposited pursuant to the Deposit Posting Order are hereby stayed and suspended pending further Order of this Court.
20. THIS COURT ORDERS that, to the extent any prescription, time or limitation period relating to any Proceeding against or in respect of the Applicants, the ITCAN Subsidiaries or any member of the BAT Group that is stayed pursuant to this Order may expire, the term of such prescription, time or limitation period shall hereby be deemed to be extended by a period equal to the Stay Period.	20. THIS COURT ORDERS that, to the extent any prescription, time or limitation period relating to any Proceeding against or in respect of the Applicants, the ITCAN Subsidiaries, any Other Defendant or any member of the BAT Group that is stayed pursuant to this Order may expire, the term of such prescription, time or limitation period shall hereby be deemed to be extended by a period equal to the Stay Period.