Details were missing in some of the provisions of the settlement among Canadian tobacco companies and their victims that was agreed to in October 2024 and finalized in August 2025. Among these were how the $1 billion set aside for non-eligible victims (the cy-pres foundation) would be operationalized.
Some information was provided this week in the paperwork provided in advance of a court hearing apparently scheduled for August 7 at 10:00 a.m. The hearing will consider changes to the settlement plans to facilitate the establishment of this "Cy-pres Foundation" to support research into tobacco-related diseases.
Paperwork for this hearing is available on the websites of the Plan Administrator for each company (JTI-Macdonald; Imperial Tobacco; Rothmans, Benson & Hedges).
The court is being asked to approve refinements and clarifications to the terms of reference for the Foundation (pasted below), as well as governance structure and the mechanisms to solicit and review proposals for funding. The board of directors are assigned an extensive list of duties and responsibilities, but will not be remunerated for their services.
------------------------------
Extract from motion material:
The Terms of Reference of the Cy-près Foundation are set out below:
Tobacco Cy-Près Research Foundation of Canada / Fondation canadienne cy-près de recherche sur le tabac Terms of Reference
Introduction: This document describes the terms of reference for the Cy-près Foundation.
Foundation Name: The corporate name of the Cy-près Foundation shall be “Tobacco Cy-Près Research Foundation of Canada / Fondation canadienne cy-près de recherche sur le tabac” which clearly relates to the purpose of the Cy-près Foundation which is to distribute the Cy-près Fund. This name will be used on the Cy-près Foundation’s website and other presentation materials.
Purpose of the Cy-près Foundation: The Cy-près Foundation’s purpose is to provide an indirect benefit to Individuals who suffer or may in the future suffer from Tobacco-related Disease, except those Individuals who receive a direct benefit under the PCC Compensation Plan or the Quebec Administration Plan by funding research, programs and initiatives focused on achieving earlier diagnosis, more effective treatment and improved outcomes in Tobacco-related Disease. The Cyprès Foundation is intended to indirectly benefit users of Tobacco Products and their affected family members or estates who are not eligible to receive payments of compensation from the Quebec Administration Plan or the PCC Compensation Plan. The Individuals who will be directly compensated through the Quebec Administration Plan and PCC Compensation Plan include Individuals suffering from Lung Cancer, Throat Cancer or Emphysema/COPD (GOLD Grade III or IV) as defined in those plans. While the Cy-près Foundation is not intended to benefit those Individuals who are directly compensated, they may receive an incidental benefit from the research, programs and initiatives it funds. The Cy-près Foundation will also benefit the Canadian public at large by funding research, programs and initiatives pertaining to Tobacco-related Diseases.
The Cy-près Foundation will not make any monetary payments to Individuals making claims arising from Tobacco-related Diseases. Those Individuals who are eligible to receive monetary compensation may be paid through either the Quebec Administration Plan or the PCC Compensation Plan in accordance with the provisions of those plans.
The users of Tobacco Products in the provinces and territories who suffer or may in the future suffer from Tobacco-related Disease, except those Individuals who receive a direct benefit under the PCC Compensation Plan or the Quebec Administration Plan, include the following Individuals and any of their affected family members or estates:
i) Smokers suffering from Lung Cancer, Throat Cancer or Emphysema/COPD (GOLD Grade III or IV) who are outside the PCC Claims Period or who smoked less than the requisite Twelve Pack-Years or, in the case of Emphysema/COPD, were not classified as GOLD Grade III or IV or the equivalent;
ii) Smokers who have a Tobacco-related Disease other than Lung Cancer, Throat Cancer and Emphysema/COPD (GOLD Grade III or IV) or the equivalent; and
iii) Individuals who smoke or have smoked Tobacco Products and have not yet or may never develop a Tobacco-related Disease.
Vision for the Cy-près Foundation: Canadians in all provinces and territories will experience earlier diagnosis, more effective treatment and improved outcomes for tobacco-related cancers, Emphysema/COPD and other Tobacco-related Diseases.
Mission of the Cy-près Foundation (“Mission”): The Cy-près Foundation will indirectly benefit current, past and future smokers and their families by funding research, programs and initiatives that will focus on achieving earlier diagnosis, more effective treatment and improved outcomes for Individuals who suffer or may in the future suffer from Tobacco-related Diseases.
Values of the Cy-près Foundation: The Cy-près Foundation will focus on: the inherent value of the research, program or initiative from the standpoint of its indirect benefit to Individuals who suffer or may in the future suffer from a Tobacco-related Disease; the need to maintain a Rational Connection between the work funded by the Cy-près Foundation and those Individuals who suffer or may in the future suffer from a Tobacco-related Disease; commitment to principles of best evidence and expert peer review; collaboration to increase the impact of research funding while limiting Cy-près Foundation overhead costs to maximize the indirect benefit to Individuals who fall within the scope of the Cy-près Foundation; and, ensuring that Cy-près Foundation funded research, programs and initiatives reflect the principles of health equity and opportunity for inclusion of First Nations, Metis and Inuit people.
What Will Be Eligible for Consideration for Support by the Cy-près Foundation: Proposals regarding research, programs and initiatives that have a Rational Connection to Tobacco-related Disease will be received by the Cy-près Foundation for consideration of eligibility for financial support from the Cy-près Foundation. Research regarding and programs and initiatives aimed at reducing or preventing tobacco use in Canada are outside of the scope of the Cy-près Foundation because they fall within the purview of the Provinces and Territories, involving policy issues and advocacy. Accordingly, such programs and initiatives will not be considered for funding from the Cy-près Foundation.
The fact that a Proposal requesting funding for research or a program or initiative is received by the Cy-près Foundation for consideration does not mean that it will necessarily be awarded a Grant. The decision regarding whether to provide funding for a Proposal is within the sole discretion of the Foundation Board and is not reviewable by the CCAA Court or any other court in Canada.
Early works:
• Establish “Tobacco Cy-Près Research Foundation of Canada / Fondation canadienne cyprès de recherche sur le tabac” and apply for registration as a “registered charity”, as that term is defined in the ITA, and a public foundation for the purposes of the ITA.
• Recruit a neutral and independent Foundation Board that will provide oversight of the Cyprès Foundation’s strategy for funding research, programs and initiatives to be funded by the Cy-près Foundation. The Foundation Board will also retain an investment and asset management firm to develop and oversee the financial and investment strategy for the Cyprès Foundation, subject to instructions from the Foundation Board.
• Develop a strategic plan for the implementation of the intended activities of the Cy-près Foundation. Potential Areas of Cy-près Foundation Financial Support:
• Improving methods for screening, diagnosis and treatment of tobacco-related cancers. • Establishing best practices for diagnosis and treatment of tobacco-related cancers, Emphysema/COPD and other Tobacco-related Diseases and increasing the likelihood that Canadians can achieve access to best practice care of these diseases.
• Researching the treatment of nicotine addiction and dependence, and tobacco use in Canada.
• Researching the effective treatment and palliation of Tobacco-related Diseases.
• Funding such other program or initiative pertaining to Tobacco-related Diseases as the Foundation Board may approve, provided that it has a Rational Connection and fulfills all other requirements for funding.
Benefit to the Public in Canada:
• The results of the research to be funded by the Cy-près Foundation are intended to enure to the benefit of Individuals who suffer or may in the future suffer from Tobacco-related Diseases. The research findings and recommendations regarding earlier diagnosis and more effective treatment of Tobacco-related Diseases will be contributed to the Canadian body of medical knowledge and disseminated to health care practitioners across Canada through publication in peer-reviewed journals and academic databases and presentations made at medical conferences.
• In addition to benefiting Canadians who have smoked or may smoke in the future, research to be funded by the Cy-près Foundation may have the potential to determine whether screening of higher risk populations and potentially all Canadians can identify cancers at earlier stages of oncogenesis when treatment is less morbid and potential cure is more likely.
• Expanded learnings from Cy-près Foundation supported research into tobacco-related cancers, Emphysema/COPD and other Tobacco-related Diseases are expected to provide a benefit to members of the Canadian public. In fulfilling the Cy-près Foundation’s mandate, it is anticipated that the Canadian population will benefit from the knowledge generated by this work.
Process for selection of proposals to receive Grants from Cy-près Fund
