Government announces next steps with tobacco litigation

Premier Roger Grimes, Justice Minister Kelvin Parsons and Health and Community Services Minister Gerald Smith today held a news conference to provide the public with information on government�s next steps in legal action against tobacco manufacturers.

In 1999, the Government of Newfoundland and Labrador committed to support a lawsuit against tobacco manufacturers to seek recovery of the health care costs incurred by the use of tobacco products.

"The care of individuals who suffer from smoking-related illnesses encumbers the delivery of healthcare in the province. We believe that this burden should be borne by the tobacco manufacturers and not by the taxpayers of Newfoundland and Labrador," said the Premier. "This lawsuit is not just about recouping the province�s costs incurred in treating smoking related illnesses. It is about making tobacco companies accountable for their role in the promotion of the use of tobacco products. We are hoping that through this lawsuit we can change the attitude of people in this province, of all ages, towards tobacco use and smoking."

In May of last year government passed the Tobacco Health Care Costs Recovery Act. It is anticipated that tobacco manufacturers will challenge this legislation, as they have challenged similar legislation in British Columbia, and for this reason government will be bringing a Reference to the Supreme Court of Newfoundland and Labrador, Court of Appeal.

"Tobacco-related illnesses place significant economic and social costs on both our health care system and the people of this province, " said Minister Smith. "The most alarming cost, is the cost of lives. Approximately 1000 Newfoundlanders and Labradorians die each year from tobacco-related illness. We firmly believe it is time the tobacco industry accept responsibility for the negative impacts its product has on the lives of individuals."

The firm, Humphrey, Farrington & McClain, in Independence, Missouri, is prepared to take the Province�s case on a contingency fee arrangement. The compensation for their professional services will be payable upon receipt by the Province of the proceeds of any settlement, or court award.

"Tobacco companies knew as early as the 1950s that cigarettes cause cancer and were addictive. We intend to use our experience to recover the increased health care costs that the province has expended to care for sick smokers, just as we have in the U.S.," said Ken McClain of Humphrey, Farrington & McClain.

"We believe, as does this U.S. legal firm, that we have a strong case to recover the enormous health costs associated with tobacco use," said Minister Parsons. "This is a win-win arrangement. The firm is confident it will be successful in the lawsuit, and the province will ultimately receive compensation for horrendous health care costs related to tobacco.

Media Contact: Edwina Bateman, Communications (709) 729-6985

2002 10 18                                         9:25 a.m.