Canadian Tobacco Company Reaches Huge Settlement, Quebec Lawyers May Receive $630 Million

Canadian tobacco company reaches huge settlement, Quebec lawyers may receive $630 million

Lawyers representing Quebecers in a class action against three tobacco manufacturers are seeking more than $630 million in fees to cover their work in the long-running case. The settlement proposal involves $22.8 billion in compensation and requires court approval.

Lawyers representing tens of thousands of Quebecers in two class actions against three major tobacco manufacturers will seek more than $900 million (US$630 million) in fees to cover their work in the landmark case that spans decades, the National Post reported on December 14.

Legal representatives for the class action said the court had received application documents requesting approval to send notices to class members informing them that the compensation they are seeking involves more than 175,000 hours of work.

The action came a day after lawyers said the company's creditors, including representatives of class action plaintiffs, had approved the settlement proposal. The proposal would see several companies pay a total of $32.5 billion (US$22.8 billion) in compensation.

Of that, more than $4 billion (US$2.8 billion) was allocated to plaintiffs in the lawsuits, and the amount requested by plaintiffs' lawyers accounted for 22% of that amount.

The proposal, announced in October, would also have JTI-Macdonald, Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. pay more than C$24 billion ($16.8 billion) to Canadian provinces and territories and more than C$2.5 billion ($1.7 billion) to Canadian smokers who did not participate in the lawsuit.

The proposal still needs court approval before it can be implemented, and a hearing expected in late January will also include a motion to approve legal fees.

The fees requested by lawyers in the class action total C$906,180,000 ($630 million) plus tax, including tens of millions of dollars in fees incurred during the litigation process that began in the late 1990s and future services to manage the claims process, a spokesman said.

Andre Lesperance, a lawyer representing some of the Quebec plaintiffs, said in a statement,

"The fees requested reflect not only the extraordinary scope of the work and results achieved, but also the unwavering dedication of the attorneys and their teams. They have worked tirelessly and aggressively against the Canadian tobacco industry, assuming the costs and risks of litigation without any guarantee of payment. This commitment is driven purely by the pursuit of fair and just compensation for the victims and their families."