Jeffrey J. Kay

The Government of British Columbia and a class of consumers brought separate actions against tobacco companies regarding the health impacts of smoking and 'light' cigarettes.

The tobacco companies issued third-party notices against the Government of Canada, claiming contribution and indemnity based on negligent misrepresentation, negligent design, failure to warn, and statutory liability.

Canada brought motions to strike the third-party claims for disclosing no reasonable cause of action.

The Supreme Court of Canada allowed Canada's appeals and struck all third-party claims.

The Court held that Canada's alleged representations and design decisions regarding low-tar cigarettes were core government policy decisions immune from tort liability.

Furthermore, Canada did not qualify as a 'manufacturer' or 'supplier' under the relevant provincial statutes.

The appellants challenged the constitutional validity of the Tobacco Damages and Health Care Costs Recovery Act, which allows the government of British Columbia to sue tobacco manufacturers to recover health care costs related to tobacco exposure.

The appellants argued the Act was ultra vires due to extra-territoriality, violated judicial independence, and offended the rule of law.

The Supreme Court of Canada dismissed the appeals, holding that the Act's pith and substance is property and civil rights in the province, it does not interfere with the adjudicative role of the courts, and it does not violate the unwritten constitutional principle of the rule of law.