All but two of Canada's 13 subnational jurisdictions managed their legal claims against tobacco companies through contingency arrangements with their legal counsel. As discussed here earlier, these fee contracts have generally not been made public. Even where there was disclosure (Newfoundland and New Brunswick), the fees may have been renegotiated over time.
New Brunswick is among the first provinces to report both the income and legal fees associated with the settlement approved last year and implemented in late summer. This week the top-line line financial reports from that province for the last fiscal year were made public. (Reflecting the timing of the settlement agreement, the province chose to report the initial payment in the fiscal year ending March 31, 2025).
Volume 1 of New Brunswick's Public Accounts can be downloaded here, and the relevant section is pasted below. "Under the agreement terms, $24.7 billion will be paid to the Provinces and Territories. New Brunswick's share is approximately 2.4%, equating to $596.0 million. In 2024-25, the Province recognized the upfront contribution of $156.0 million in revenue (Schedule 15) and $17.7 million in net associated legal fees and disbursements payable."
This suggests that the legal costs of this revenue were equal to 11.35% ($17.7 million as a percentage of $156 million). The net revenues from the settlement to the province from the initial payment were $138.3 million.
This is roughly double the revenue reported by the province from tobacco and vaping taxes ($64.7 million and $900,000 respectively).
The legal fees inferred for New Brunswick are at a higher rate than the 10.2% for Nova Scotia, which engaged the same legal team, and lower in comparison to the 25% paid by Newfoundland and Labrador, which was represented by a different set of lawyers. Information on financial declarations by those provinces is provided below.
-------------------------------
Notes from the Public Accounts of other provinces
BRITISH COLUMBIA:
In the 2024-25 Public Accounts, the Independent Auditor for British Columbia expressed concern that the province failed to include an estimate of revenues from the settlement. "An initial estimated amount of $0.9 billion is expected to be received in fiscal year 2026 with the remainder to be received over an estimated 20 years. At March 6, 2025, government should have recorded an asset, corresponding revenue, and related legal expenses."
ALBERTA:
In the year-end report presented in June 2025, the Alberta Government identified that it was recording revenues from the settlement, but did not specify the amount or the associated legal costs.
SASKATCHEWAN:
In its financial statement released in June 2025, the Saskatchewan government noted revenues from the settlement and also expenses related to legal costs, but provided no specific figures.
MANITOBA
In its Public Accounts for 2024-25, the Manitoba Government chose to report revenues of $846 million with associated expenses of $425 million. Because the settlement agreement identified its share of the provincial revenues at 4.53%, its total revenue was anticipated to be $1,118.9 million, with an upfront payment of $284.3 million. The lower amount declared is explained as follows in the Public Accounts: "The tobacco
settlement expense includes an allowance for doubtful
accounts in the amount of $396 million that was
established in recognition of the significant uncertainty
over the amount and timing of the future payments
related to the tobacco settlement and $29 million of
legal fees that were expensed in 2024/25."
If the legal fees of $29 million were in association with an upfront payment of $284.3 million, the implicit legal fee is equal to 10.2%
ONTARIO
Public Accounts are not available at this time. Ontario did not engage lawyers on a contingency fee basis.
QUEBEC
In its Public Accounts, Quebec recognized revenues of $1,735 million as an "initial amount". Quebec's share of the provincial revenues is 28.2796151%. Quebec did not rely on outside counsel when making its claim against the companies (although it engaged outside counsel during the settlement process)
The government explained its decision to not report the total anticipated amount as follows: "There is significant uncertainty with regard to the future encashment of this amount and its recovery period, as they depend on the sales level of tobacco products, which will be affected by trends in the economy, regulations, and consumption habits. If cashed in full, the amount could be recovered over a period of approximately 20 years. The level of net profits from tobacco products cannot be reasonably estimated. Therefore, the government will record the remaining amount annually when it gets confirmation of the share of revenue to which it is entitled."
NOVA SCOTIA
In its Public Accounts for 2024-25, the province of Nova Scotia identified "$16.9 million in tobacco settlement legal fees" and "Tobacco Settlement Revenue of $203.1 million." The reported legal fee is 8.3% of the settlement revenue. The province also elected to only report revenue received and to defer the reporting of later payments: "... revenue
will be recognized annually when there is certainty of the amounts, determined by these
tobacco companies’ annual after-tax profit."
NEWFOUNDLAND AND LABRADOR
In its Public Accounts for 2024-25, the province of Newfoundland and Labrador reported settlement revenue of $138,832,000, with associated legal costs of $34.7 million. "Legal fees in relation to the tobacco settlement are 25%
of the gross settlement proceeds, payable by the Province as the settlement proceeds
are recovered. At 31 March 2025, the upfront settlement payment of $138.8 million
has been recorded as revenue and receivable, with 25% of this amount, or $34.7 million,
in relation to legal fees for the settlement recorded as other payable and professional
services expense."
PRINCE EDWARD ISLAND
Prince Edward Island was represented by the same legal team as Nova Scotia, New Brunswick, British Columbia, Manitoba, Saskatchewan and the territories. Its public accounts for 2024-2025 are not available at this time.
TERRITORIES
Although none of the three northern territories initiated a lawsuit against tobacco companies, they participated in the settlement, and were represented by the same firm which managed the majority of provincial claims. Their public accounts are not available at this time.
