Under a historic total agreement of 32.5 billion with tobacco companies to be ratified, 4.25 billion will be used to compensate Quebec victims of tobacco, their heirs and the heirs of heirs. How much will each receive? Under what conditions?
Posted at 10:18 a.m.
Updated at 5:14 p.m.
Who could get a big check?
A person (or their descendant) who started smoking before 1is January 1976 and having had lung or throat cancer will be able to receive up to $100,000 (and up to $80,000 if the person started on or after January 1is January 1976). Victims of emphysema or chronic obstructive pulmonary disease (COPD) could receive a maximum of $30,000.
So much money, really?
Be careful, insists the Quebec Council on Health and Tobacco (CQTS): in
In the event that the $4.25 billion is “insufficient to pay the maximum amount of compensation to those with a valid claim, compensation will be adjusted downward on a pro rata basis.”
Wasn’t that already settled?
In 2019, after their defeat in the Quebec Court of Appeal which condemned JTI-Macdonald, Rothmans, Benson & Hedges and Imperial Tobacco to pay 13.4 billion in compensation, the three tobacco companies filed for bankruptcy. The legal tribulations continued, until this settlement announced Thursday.
What does the agreement cover in total?
The deal is worth 32.5 billion. Of this, 24.8 will be directed to the provinces and territories which thus recover part of the health costs linked to smoking; 4.25 billion will go to Quebec victims; 2.5 billion for victims in the rest of Canada and one billion will be used to create a fund for the treatment of smokers.
Will this time be the right one?
Me André Lspérance, of the Trudel Johnston Lspérance firm, which has been working on these files for years, emphasizes that the plan remains to be approved by the creditors, but that everything indicates that it will be. Yes, the 2019 defeat at the Court of Appeal hurt tobacco companies temporarily and financially, who filed for bankruptcy. The fact remains that “they make enormous profits every year,” notes M.e Hope. And importantly, tobacco companies were forced to set aside an envelope of 12.4 billion, which is available now.
“The victims will be compensated in the short term, the provinces, afterwards,” summarizes Me Hope.
How major is this deal?
To the knowledge of Me André Lspérance is the largest settlement, in terms of value, in the history of litigation in Canada. But the victory remains bittersweet for Flory Doucas, co-director and spokesperson of the CQCT. Because in the document to be ratified, “nothing is planned in terms of prevention”. However, a number of “new products, which attract young people in particular”, will continue to be a success for cigarette companies and cause enormous health problems, she observes.
In short, after paying for the stadium, smokers pay for the cancer of those who are affected?
It’s unfortunate, but the courts have never accepted that the sale of cigarettes can be illegal, replies Me André Lesperance. But at least, over the next five years, no less than 85% of tobacco companies’ profits will go to giving money back to the provinces and territories and the victims will be compensated.
Put bluntly, will it be necessary to prove your cancer with lots of documents?
The Quebecers concerned will not have to prove their diagnosis. Information on the diagnoses of members of the appeal will be obtained from the Quebec Cancer Registry or MED-ECHO (a provincial database containing information relating to hospital stays occurring in Quebec hospitals providing general and specialized care).
What should people who think they are affected do for now?
« You don’t need to do anything at this stage. It is the lawyers of the representatives of collective actions who look after the interests of the members, participate in discussions and vote,” indicates the CQTS.
Visit the site on tobacco class actions
The global arrangement plan providing in particular for compensation for members of Quebec collective actions will be submitted to a vote of creditors no later than December 12, 2024.
What will the people involved ultimately have to provide?
The tobacco victim’s health insurance number and authorization for attorneys to obtain diagnostic information on their behalf.
