Post Script: On February 5, 2025 an Affidavit by Michael Peerless was filed as part of the CCAA review of the contingency fees to be paid to counsel for the class action. In this affidavit he states that the "fee payable is approximately 3.6% of the recovery by the Consortium Provinces and Territories". The contracts outlining these fees, however, are maintained as privileged documents.
If this is the case, these firms are set to receive a total of $263.7 million from the provinces of British Columbia, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island and the three northern territories.
This modifies the information previously reported here.
The amounts paid in contingency fees for lawyers acting on behalf of Newfoundland and Labrador and Alberta have not been disclosed.
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11 of Canada's 13 jurisdictions have hired lawyers on a contingency fee basis
Ontario and Quebec are the only two Canadian jurisdictions which have used in-house staff to manage their lawsuits against tobacco companies.
Each of the other 11 jurisdictions is working on a contingency fee basis with private law firms. They have agreed to pay these firms a percentage of any payments that are provided to them as a result of their lawsuits. British Columbia originally engaged a local firm on a fee-for-service basis, but a decade later shifted legal teams. In 2009, after about a decade of effort, B.C.'s payments to outside counsel were reported as being $12 million.
Three sets of law firms are primarily involved, with additional support during the insolvency process:
- A consortium of three firms represents British Columbia, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island, Saskatchewan, Northwest Territories, Nunavut and Yukon.
- Newfoundland and Labrador is represented by a U.S. firm working with a Canadian partner.
- Alberta is represented by a firm based in that province. (Alberta and Newfoundland-Labrador are represented by the same counsel in the CCAA mediation.
The contracts with private law firms have mostly been kept a secret.
Only two provinces - New Brunswick and Newfoundland and Labrador - have provided information on the terms of their contracts with these private law firms.
Details on the New Brunswick arrangement were made public after tobacco companies challenged the contingency fee arrangement in court. The ruling which upheld the arrangement provided information on the percentage that would be paid: 12% after a statement of claim was filed but before trial began; 18% after trial proceedings had begun but before they were concluded; 20% if the trial had been completed and 22% if an appeal stage was involved.
