Agreement would mean $596 million for New Brunswick of the $24.7 billion being offered to provinces directly, minus legal fees

Lawyers representing New Brunswick say they have voted in favour of approving a proposed $32-billion settlement with tobacco giants.

That’s as representatives of provincial governments who are seeking to recover smoking-related health-care costs, as well as plaintiffs in two Quebec class-action lawsuits, met on Thursday in a series of confidential virtual meetings over whether a settlement should go ahead.
Earlier this month, a mediator with the big three tobacco companies – Rothmans, Benson & Hedges, and Imperial Tobacco Canada Ltd. – submitted a 1,437-page plan in Ontario Superior Court to settle the country’s largest-ever class-action lawsuit.
Obtained by Brunswick News, it states that the provinces have agreed to a percentage breakdown of any payout.
New Brunswick would receive 2.4117 per cent of any settlement paid to provincial governments.
That equates to $596 million of the $24.7 billion being offered to provinces directly.
If accepted, New Brunswick would get $152 million of that, potentially as early as the first few months of next year, while the remainder would be paid out over several years, if not decades, depending on tobacco company revenues.
That said, a significant portion of that, roughly 18 per cent, would be owed to the legal team representing a consortium of several provinces, including New Brunswick, according to settlement details.
Individual New Brunswickers impacted by smoking would also be eligible for a share of $2.5 billion.
New Brunswick joined forces with a series of other provinces, including British Columbia, Saskatchewan, Manitoba, Nova Scotia, Prince Edward Island, and the three territories, to represent them in the proceedings.
Lawyer Michael Peerless confirmed on Thursday to Brunswick News that the group backed the proposed deal.
“Yes, indeed, New Brunswick voted in support, as did every other Province and Territory in Canada,” Peerless said in an email. “All of our clients look forward to having the mediator’s plan moving forward to completion.”