The defendants, three major tobacco manufacturers, appealed a motion judge's decision dismissing their motion for summary judgment.
The plaintiffs, tobacco growers, brought class actions alleging the defendants breached agreements by paying lower export prices for tobacco that was subsequently smuggled back into Canada.
The defendants argued the claims were statute-barred as the plaintiffs knew or ought to have known of the claims more than six years prior.
The motion judge found a genuine issue for trial regarding when the plaintiffs discovered the defendants' complicity in the smuggling.
The Divisional Court dismissed the appeal, finding no palpable and overriding error in the motion judge's conclusion that the defendants' involvement in smuggling was an essential element of the claim and that its discoverability required a trial.