Friday, 16 May 2025

JTI releases more information on its request for its own litigation stay to be removed

More details have emerged following the quiet (unobserved?) hearing held before Justice Morawetz on April 29th. The hearing took place at the request of JTI Macdonald, which wants to tweak the ground rules of their insolvency protection which were set in 2019.

The requested change would prevent an expiry of their own limitation period to sue other parties. The proposed change is shown in blackline below:

Yesterday, JTI's monitors tabled their 27th report (dated May 15, 2025), which provides details on why they want this wording change: they want to challenge federal regulations. "The Applicant sought the relief requested in the Amendment Motion in consideration of its current and future rights in respect of federal regulations applicable to the Applicant."

From this report, it would appear that Chief Justice Morawetz had sought reassurance that the federal government was aware of the potential change. According to the report (and the Appendix B to it), the  federal government was duly notified and decided to voice no opposition.