Monday 22 April 2019

Two more motions for Round 2 of the Comeback hearings.

At the end of this Easter week, two days (April 25 and 26) are allocated for requests for further further modifications to the initial orders setting up the terms of creditor protection.

Two new requests for changes were filed this week.

Unsettling and resettling the insurance settlements

On April 4th, Justice McEwen agreed to a carve out of the general freeze on all litigation developments to allow the Quebec Class Action Plaintiffs "to seek the approval of the Kansa Settlement and of the Northumberland Settlement from the Honourable Justice Brian Riordan JSC."   

As explained here yesterday, last Tuesday they proceeded to do so following the Quebec court rules for giving such approval, as set out in Article 590 of the Quebec Code of Civil Procedure. This required transparent disclosure to class members of the use to which the settlement money would be put. This seems to be an issue which has upset Imperial Tobacco and Rothmans, Benson and Hedges. On Thursday they sent emails to both judges to complain, if I understand their position correctly, that although they are agreeable to court approval of the settlement, they oppose any use of the funds.

The Quebec class action team has given notice that they will ask Justice McEwen to clarify his order to allow the Quebec court to decide these issues.

The pensionless pensioners

Of the 5,000 or so former executives and workers who receive pensions administered by Imperial Tobacco, there are 53 Americans who are former employees of Genstar. These individuals have suddenly found themselves without their monthly pension cheques.

Genstar (which had nothing to do with the tobacco business) was owned by Imperial Tobacco before the non-tobacco assets were spun off as part of British American Tobacco's privatization of the company. It would seem that some of the pension responsibilities, however, stayed behind.

Behind - but not secured. Of the 9 pension funds administered by the company, only this one is not registered and not protected.


Their concerns were refiled with Justice McEwen earlier this week. One of the bases for their claim for special consideration is "the Canadian Charter of Rights and Freedoms. It is respectfully submitted that before this Honourable Court makes any order staying pension payments to Affected Members, it must be mindful of whether that order will result in jeopardizing the life or security of any person and be reasonably satisfied that such order will not in actual fact do so. Orders made by judges under the CCAA are subject to the Charter."