Sept. 29 (Bloomberg) -- British Columbia can sue tobacco companies including British American Tobacco Plc and Altria Group Inc.'s Philip Morris to recover money spent to treat smokers' illnesses, Canada's Supreme Court ruled.
The Supreme Court's ruling allows the province to use a 2000 law that forces the tobacco companies to prove their products didn't cause smokers' illnesses. Tobacco companies said the British Columbia law violates the Canadian Constitution because it extends beyond its boundaries and interferes with the independence of the courts.
The decision sets a precedent for provinces including Ontario, which plans similar legislation, and may put tobacco companies on the hook for billions of dollars for the treatment of ailments such as emphysema and lung cancer. British Columbia is spending C$500 million ($427 million) on smokers' illnesses this year alone.
``This is an enormous victory against the tobacco industry that will be beneficial to public health,'' Rob Cunningham, a policy analyst for the Canadian Cancer Society, told reporters today. ``Finally, the tobacco industry will be forced to account for its actions before a court of law.''
Bloomberg