Tobacco producers commenced a proposed class action alleging that federal and provincial governments failed to enforce tobacco taxation and excise legislation, allowing contraband tobacco markets to flourish and causing economic losses to lawful producers.
The plaintiffs advanced claims in misfeasance in public office and negligence, asserting that public officials deliberately failed to enforce statutory regimes to placate certain communities.
The defendants moved under Rule 21.01(1)(b) of the Rules of Civil Procedure to strike the amended statement of claim for disclosing no reasonable cause of action.
The court held that the pleading failed to allege the essential elements of misfeasance in public office, including deliberate unlawful conduct and bad faith by specific officials.
It further concluded that the statutory schemes governing tobacco regulation did not create a private law duty of care owed to tobacco producers and that recognizing such a duty would improperly subject government policy decisions to tort liability.
The amended statement of claim was struck and the action dismissed.
