Philippe H. Trudel

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.

The appellants challenged the validity of provisions in Quebec's Health Insurance Act and Hospital Insurance Act that prohibit residents from purchasing private health insurance for services covered by the public health care plan.

They argued that waiting times in the public system deprived them of access to timely care, violating their rights under the Quebec Charter and the Canadian Charter.

The Supreme Court of Canada allowed the appeal.

A majority found that the prohibition violates the right to life and personal inviolability under s. 1 of the Quebec Charter and is not justified under s. 9.1.

Three of the judges also found that the prohibition violates s. 7 of the Canadian Charter because it arbitrarily deprives individuals of life and security of the person by forcing them to endure unreasonable waiting times without the option of seeking private care.