Tuesday 26 November 2019

Turns out another hearing in Justice McEwen's court can be arranged, after all.

When dozens of lawyers convened in early October before Justice Thomas McEwen to talk about the tobacco industry, it was made clear by the judge and the companies that an uninterrupted and prolonged recess was necessary if progress were to be made towards arriving at a global settlement between Canada's large tobacco companies and the provinces, smokers and farmers that are suing them.

Lawyers for the Quebec class action (the only case where the court has made a judgement and assigned damages) wanted the opportunity to connect with the judge before the mid-March date proposed by the companies. They suggested that rather than a 5 month hearing-hiatus, the court should reassemble on January 15th so that any foot-dragging or monkey business that arose could be given an airing.  (The province of Quebec was the only other party to support this request).

The companies were clearly opposed. "Any shorter extension would require attendance at hearings like these that would create distractions," said the lawyers for Imperial Tobacco.

Justice Winkler turned down the request for an earlier hearing. In doing so, he said: "I am not prepared to grant QCAP or any other stakeholder this right. To do so would tilt the playing field in favour of the stakeholder wielding this power."

And yet.

This week a joint motion by the independent (cough!) monitors was posted. They want a court hearing on December the 6th, and are asking the judge to appoint a law firm to represent all of the cases other than the provinces, the certified class actions, the farmers, and suppliers. The list of cases that were identified when the companies applied for protection (Schedule  A of the Thauvette Affidavit) that will be affected are identified below.

To these eyes, it seems they want to replace Tony Merchant's firm at the table with their own nominee, Wagner & Associates. Having nominated the mediator (Warren Winkler), they are now nominating their opponents' negotiators. Funny business, this CCAA.

Update - Wednesday November 17th. 

In their updated reports ahead of next week's hearing, the Monitors' have submitted identical explanations of why they propose Mr. Wagner's firm take over as a representative of all Canadian smokers who might have a claim against them, other than those captured by the Quebec and Knight class actions. (See, for example, Appendix A to the report by Deloitte on behalf of JTI-Macdonald).  This report includes:
* Some pretty pictures describing the types of cases the companies face
* Details of the Mr. Wagner's qualifications (he has no experience in tobacco) 
* Explanation that Mr. Wagner would be paid on an hourly basis by the tobacco companies. (Not only are the companies nominating their victims' representative, they will him on their payroll!)

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Litigation facing Imperial Tobacco that would be affected by the proposed Order
(From Thauvette Affidavit, March 2019)


Class actions

Alberta
June 15, 2009;  Linda Dorion

British Columbia
June 25, 2010; (Victoria) Barbara Bourassa on behalf of the Estate of Mitchell David Bourassa
June 25, 2010; Roderick Dennis McDermid

Manitoba 
June 2009;  Deborah Kunta

Nova Scotia 
June 18, 2009;  Ben Semple

Ontario
June 27, 2012; Suzanne Jacklin

Saskatchewan 
July 10, 2009; Thelma Adams

Individual Actions

Nova Scotia
February 20, 2002, Peter Stright

Ontario 
May 1, 1997 to 2004; Ljubisa Spasic as estate trustee of Mirjana Spasic
September 8, 2014; Ragoonanan et al.
June 30, 2003;  Scott Landry
June 12, 1997;  Joseph Battaglia

Quebec
December 8, 2016;  Roland Bergeron