Billions of dollars have been awarded to 100,000 smokers after a lengthy 17 year battle between three tobacco giants and the group of plaintiffs in Quebec, Canada. The ruling has been called “historic” after a massive total of $15.6 billion dollars – or $12 billion USD was ordered by a Quebec judge to be paid in punitive damages for not properly informing consumers of the health dangers related to smoking.
The total punitive costs are split between the three. $10.5 billion charged to Imperial Tobacco, $3.1 billion to Rothmans, Benson & Hedges, and the last $1.6 billion dollars to JTI-Macdonald.
The numbers are very significant for this type of collective law suit, as it differs from civil cases such as Tobacco Master Settlement Agreement of $200 billion ruling to 40 states back in 1998, the same year this case started. Civil suits seek to get punitive damages paid to provinces or states for health care costs related to tobacco smoking, while this case aimed at compensating the actual smokers, ex-smokers, and families of deceased smokers.
The tobacco giants have been found guilty of not upholding their duty to inform the public of the dangers related to tobacco smoking. Cigarette packs have had warning labels for the past 40 years in Canada, but all of the plaintiffs had been addicted before that. The industry giants argue that Canadians have been well aware of the dangers, including lung cancer, for decades prior.
All three Tobacco companies have completed refuted that justice was served. Imperial Tobacco Canada disappointed by judgement is appealing the decision. Same for Rothmans, Benson & Hedges are committed to vigorously appeal. JTI-Macdonald also took a united stand against the ruling. This means the final rulings are actually far from being over, but the decision remains massively impactful.
The ruling was made for two class action lawsuits trialed together. The first was composed of a group of almost 100,000 Quebec resident smokers and ex-smokers affected by lung cancer, throat cancer, larynx cancer, and emphysema. The second lawsuit represented all 918,000+ current smokers in the province of Quebec. Although the ruling sided with the plaintiffs for both cases, only the first group of 100,000 would receive the 15 billion dollars in compensation.
Depending on current illness, payouts range from $24,000 to $100,000 dollars per plaintiff, plus an additional back pay of interest accumulated across the 17 years of trial. Due to the length of the trial, and final 276-page ruling, many plaintiffs have already passed away leaving the payout to their estate, but providing closure to the families, and an important victory for society.