André Lespérance

This decision concerns three motions to approve class counsel fees in the context of insolvency proceedings under the Companies' Creditors Arrangement Act involving three major tobacco companies.

The court approved the Quebec Class Action Plaintiffs' counsel fee request of approximately $901 million (representing 22% of the $4.119 billion allocated to the Quebec class members), the Knight Class Counsel fee request of $5 million plus disbursements, and the Tobacco Producers' counsel fee request of $3.75 million.

The court found that the fees were fair and reasonable given the exceptional risks assumed, the unprecedented outcome achieved, and the unique circumstances of the case.

A $50 million reserve was established from the Quebec counsel fees to protect against any pro-rata reduction in class member compensation due to actual take-up rates or other factors.

This decision sanctions the CCAA Plans of Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, JTI-Macdonald Corp., and Rothmans, Benson & Hedges Inc., effecting a global settlement of all tobacco-related claims in Canada.

The court reviews the structure, allocation, and fairness of the plans, including the creation of a $1 billion Cy-près Foundation, and addresses objections from social stakeholders.

The court finds the plans fair, reasonable, and in the public interest, and grants the requested relief, including third-party releases and the appointment of plan administrators.

This endorsement concerns ongoing insolvency proceedings under the Companies’ Creditors Arrangement Act (CCAA) involving JTI-Macdonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc. The specific motion, brought by the applicants, sought a Quebec Class Action Plaintiffs Notice Protocol Order.

The motion was unopposed and was granted by the court, with the requested order signed.

This endorsement concerns a joint motion brought by the court-appointed Monitors for JTI-Macdonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc. in their ongoing Companies’ Creditors Arrangement Act (CCAA) proceedings.

The Monitors sought a Sanction Protocol Order to establish the date for the Sanction Hearing, ratify the litigation timetable, approve the dissemination of the Agenda and Sanction Hearing procedure, approve the Omnibus Sanction Hearing Notice, and set the deadline for Sanction Hearing Objection Notices.

The motion was unopposed and was granted by the court, with three orders signed.

The Québec Class Counsel sought an interlocutory injunction against Actis Law Group and its principal, Andrea Grass, to prevent them from advertising legal services and soliciting retainers from Québec Class-Action Plaintiffs (QCAP) in the ongoing tobacco CCAA insolvency proceedings.

The court granted the injunction, finding a serious issue to be tried, irreparable harm to the orderly resolution of the CCAA proceedings and potential confusion for vulnerable claimants, and that the balance of convenience favored the injunction.

The court also waived the requirement for an undertaking from the moving party.

This supplementary endorsement addresses a request from JTI-Macdonald Corp. regarding the adequacy of notice elements in the Claims Procedure Order within the ongoing Companies' Creditors Arrangement Act (CCAA) proceedings.

The court confirmed its satisfaction that the notice elements in the Claims Procedure Orders are reasonable in the circumstances, addressing an oversight from previous submissions.

The Superior Court of Justice addressed multiple motions within the complex Companies’ Creditors Arrangement Act (CCAA) proceedings of JTI-Macdonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc. The court granted a stay extension until January 31, 2025, and approved Meeting Orders and Claims Procedure Orders.

These orders facilitate the advancement of comprehensive Plans of Arrangement, developed by the court-appointed Mediator and Monitors, aiming for a Pan-Canadian global settlement of tobacco claims totaling $32.5 billion.

The court found the plans were not "doomed to fail" despite outstanding issues regarding financial allocation among the Tobacco Companies and the creditor status of JTI-Macdonald TM Corp.

This decision, Part 9 of a series in a multi-jurisdictional class action, addresses bitterly contested motions by both the Attorney General of Canada and Class Counsel to revise the Distribution and Individual Issues Protocol (DIIP).

The dispute centered on the scope of reply position statements for Track 2 claims.

Canada sought to limit replies strictly to mitigating factors and causation rebuttal, while Class Counsel argued for broader replies to new issues raised by Canada.

The court denied both parties' specific requests, instead directing a revision to allow Canada a right of sur-reply if a claimant files a reply, and imposing an increased payment to the Manager/Expert in such instances.

The ruling aims to ensure fair, efficient, and proportionate litigation while discouraging procedural abuses by either party.

This is Part 10 of a series of joint decisions in multi-jurisdictional class actions (Ontario and Quebec).

Class Counsel sought further revisions to the Distribution and Individual Issues Protocol (DIIP), specifically to increase the $6,000 costs cap for Track 2 claims to $12,000, and to add a clause about Rule 49 of the Rules of Civil Procedure applying to Track 2/3 claims, and to apply ordinary costs rules for contested Track 2 motions.

The court approved the latter two unopposed requests but denied the request to increase the costs cap, emphasizing proportionality and the need to simplify procedures rather than increase costs.