Shaun F. Laubman

Ontario sued foreign and domestic tobacco manufacturers under the Tobacco Damages and Health Care Costs Recovery Act, 2009 to recover health care costs.

Six foreign defendants brought a motion to stay or dismiss the action for lack of jurisdiction, which was dismissed.

The foreign defendants appealed.

The Court of Appeal dismissed the appeal, finding that the statutory claim was analogous to a tort committed in Ontario, establishing a presumptive connecting factor under the Van Breda framework.

The Court also upheld the motion judge's findings that Ontario established a good arguable case and affirmed the costs award.

The moving party sought advice and directions under a court‑approved CCAA Plan of Arrangement governing the restructuring of Canada’s third‑party asset‑backed commercial paper market.

The administrator argued the Plan and related agreements permitted it to terminate credit default swap transactions and fund termination payments from collateral without dealer consent below specified thresholds.

A dealer noteholder opposed, asserting the agreements required negotiated consent where collateral beyond a specific trade would be affected.

The court held that the contractual language did not eliminate consent requirements and that the court’s broad CCAA jurisdiction could not be used to effectively rewrite the negotiated agreements.

The request for declaratory or corrective relief was refused.

Following dismissal of jurisdiction motions brought by several foreign tobacco companies in a health care cost recovery action, the court determined costs.

The unsuccessful moving parties argued that earlier evidentiary and procedural steps constituted separate proceedings and sought substantial costs for those steps.

The court rejected that characterization, holding that all preliminary steps formed part of the overall jurisdiction challenge and that distributive costs awards based on success on individual steps should be avoided.

Applying Rule 57.01 factors and general costs principles, the court found the responding party was the successful party and entitled to costs, subject to reductions reflecting partial success on certain evidentiary and motion issues.

The court awarded partial indemnity costs of $425,000 plus disbursements, allocating liability between two groups of moving defendants.

The Crown brought an action under the Tobacco Damages and Health Care Costs Recovery Act against several domestic and foreign tobacco companies, claiming $50 billion for health care costs related to tobacco disease.

Six foreign defendants brought motions to set aside service ex juris and stay or dismiss the action, arguing the Ontario court lacked jurisdiction simpliciter.

The court dismissed the motions, finding that the Crown had established a good arguable case that the foreign defendants conspired and acted in concert to commit tobacco-related wrongs, establishing a real and substantial connection to Ontario.

The plaintiff sought leave to appeal an order of a motions judge that set aside a Master's order requiring affiants to re-attend cross-examinations to answer refusals.

The motions judge had found that the Master erred in principle by improperly applying the principle of proportionality to enlarge the scope of cross-examination beyond what is permissible.

The Divisional Court denied leave to appeal, finding no conflicting decisions and no reason to doubt the correctness of the motions judge's order.