The Supreme Court of Canada ruled Friday that the federal government cannot be drawn into lawsuits against tobacco companies and held liable for damages.
The unanimous decision marks a victory for Ottawa in two cases where it could have been on the hook for potentially billions of dollars if the tobacco industry loses once the cases proceed.
Imperial Tobacco Canada Ltd., and a number of other major tobacco companies were trying to have the Supreme Court declare the federal government a third party in the cases. That would have forced Ottawa to act as a co-defendant.
Friday's decision covers two appeals from British Columbia's Court of Appeal and it rejects all of the arguments put forward in both cases by the tobacco companies.
Imperial Tobacco says it is "disappointed" with the decision.
Read more here.
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