The province launched the suit in 2008 and was within months of finally going to trial, when the three companies filed for court protection from their creditors in 2019.

As part of that court-supervised process, provincial governments are negotiating how to settle their claims.

And a trio of health advocacy organizations are urging them to push for major concessions to help drive down the number of smokers.

Lana Randell, of the Canadian Cancer Society's Saint John office, says this is an opportunity to make sure the tobacco industry is working to reduce tobacco use. (Submitted by Lana Rendell)

"This is like a one-time opportunity to make sure the tobacco industry is working to reduce tobacco use," said Lana Randell, an advocacy co-ordinator in the Canadian Cancer Society's Saint John office.

"We want to make sure from the New Brunswick government that there are effective measures to reduce tobacco use in our province." 

The society, along with the Canadian Lung Association and the Heart and Stroke Foundation, is releasing an open letter to provincial premiers Monday laying out what it wants the tobacco companies to agree to, including: 

• Allocating at least 10 per cent of the money from any settlement to an independently managed fund to promote reduced tobacco use.

• Ending all tobacco promotion.

• Requiring the companies to pay even more if smoking-reduction targets are missed.

• Disclosing internal company documents.

Lawsuits by all 10 provinces, with British Columbia filing the first one in 1998, named Imperial Tobacco, Rothmans, Benson & Hedges and JTI-Macdonald.

The cases were held up by a range of procedural court battles, but New Brunswick's suit was scheduled to finally go to trial in November 2019.

But in March of that year, a group of people in Quebec won $13.5 billion in damages in a class-action lawsuit against the companies.

They sought creditor protection, which put a freeze on all other lawsuits against them.

That forced the provinces into the creditor process. Six provinces — New Brunswick, Nova Scotia, Prince Edward Island, Manitoba, Saskatchewan and British Columbia — are working together with the same legal team, while some other provinces are operating on their own.

A spokeswoman for the B.C. attorney general said she could not comment on any plans the province may have to introduce measures to reduce tobacco use following a settlement, citing confidentiality obligations.  

About 12 per cent of New Brunswickers smoke, according to the Canadian Cancer Society. (Jenny Kane/The Associated Press)

The three health organizations allege that the companies marketed their products to youths, concealed internal research on the health impacts of smoking, failed to warn customers of those effects and publicly denied they existed.

In the open letter to the premiers, timed to mark World No Tobacco Day on Wednesday, they say the companies can't return to "business as usual" after a settlement.

Randell cited a study estimating New Brunswick's health-care system spends $152 million per year caring for people with tobacco-related illnesses.

Randell says the provinces were collectively seeking more than $500 billion in damages, though New Brunswick never specified an amount in its lawsuit.

About 12 per cent of New Brunswickers smoke, according to the society. The federal government has set a goal of reducing that to five per cent by 2035 — a key reason for the three health groups advocating taking a tough line.

"We need to not only ask for recovery of the costs they've already incurred, but future ones, to make sure we get our tobacco numbers down," Randell said.

Moncton lawyer Philippe Eddie, who has been representing the province in the lawsuit, said in a email he wasn't authorized to comment.

Then-health minister Mike Murphy and former attorney general T.J. Burke announcing first steps toward the lawsuit back in 2006. (CBC)

Lawyers from two national law firms representing the six provinces working together in the creditor protection process did not respond to a request for comment.

The province turned down an interview request with Attorney General Ted Flemming.

"Government does not comment on cases that are before the courts," said spokesperson Judy Désalliers.

Randell said the society has made the case for its demands in meetings with government officials and in letters, but those officials said they can't speak about creditor proceedings before the courts.

"They want to get the numbers down as much as we do, I'm sure," she said.

"They've said they've taken our letters into consideration but they can't speak to us about it. …  We don't know what's going on behind closed doors. We have no idea." 

John Sinclair, the corporation’s president, said the organization is required by the provincial government to maximize returns and is not permitted to avoid controversial investments.

"We have a legal obligation to invest in the best interests of those pension plans," said Sinclair in an email to the CBC. 

"Our legal fiduciary duty ... requires NBIMC to invest in opportunities that can obtain the highest possible return."

Tobacco stocks have been strong performers with Philip Morris's stock price alone climbing 72 per cent over the past four years.

Last year, however, Alberta pension fund managers sold off their tobacco stocks because of a similar lawsuit in that province, according to Leo de Bever, the president of the Alberta Investment Management Corp.

The British Columbia Investment Corp. had $346 million in tobacco industry investments as of March 31, 2010. Quebec's Caisse de Dépôt et Placement also had multimillion-dollar tobacco holdings at the time.

As well, the Canada Pension Plan Investment Board held $218 million worth of shares in tobacco firms in the same time period.

Alberta is being lauded by anti-smoking and social investment groups for being the first province to dump its investments in the tobacco industry.

The Alberta Investment Management Corp. has sold $17.5 million in directly managed stock held by public sector pension funds and the Alberta Heritage Savings Trust Fund.

Last October, when she was Alberta's justice minister, now Premier Alison Redford said the province's lawsuit against big tobacco would be filed within a year. ((CBC))

Leo de Bever, CEO of the Crown corporation, said the province is making the move as it prepares to file a lawsuit against big tobacco to recover health-care costs for smoking-related illnesses.

Holding such shares while fighting the case would look bad, he said.

"We have divested all of the actively managed tobacco stocks. This was across the spectrum and it is because the government is suing the tobacco companies over health care," de Bever said. "We could be seen as directly holding tobacco stocks."

He says the corporation still has some "small" tobacco holdings within indexed investment funds that it does not directly manage.

Groups such as the Social Investment Organization and Physicians for a Smoke-Free Canada said Alberta's move to divest itself of tobacco shares is a first for a Canadian government.

B.C. owns $346M in tobacco shares

Most provinces have tobacco industry investments, but only a few release detailed information about them, said Cynthia Callard, executive director of Physicians for a Smoke-Free Canada.

The British Columbia Investment Corp. had $346 million in tobacco industry investments as of March 31, 2010, she said. Quebec's Caisse de Dépôt et Placement also has multimillion-dollar tobacco holdings.

The Canada Pension Plan Investment Board had $218 million worth of stock in multinational tobacco companies during the same period. Efforts to have the board divest itself of those investments have not been successful.

Callard said Alberta's tobacco holdings were more modest, but hopes other governments will follow the province's example.

"They are the first to do it. This is a very significant step forward," she said from Ottawa.

Les Hagen of the group Action on Smoking and Health also praised the Crown corporation's decision to sell off tobacco industry holdings.

Hagen says it would be completely contradictory for the Alberta government to sue tobacco companies while investing in tobacco stocks.

"This is a momentous decision that will have a ripple effect on other pension-fund managers and institutional investors across the country."

Lawsuit still not filed

Alberta passed a bill in 2009 to pave the way for its tobacco lawsuit, but the legislation has not yet been proclaimed and a statement of claim has not been filed.

Last October, then justice minister Alison Redford said Alberta's lawsuit against big tobacco would be filed within one year.

Redford, who is now premier, told the legislature last year that the tobacco industry must share the burden of paying to treat costly smoking-related illnesses such as cancer and heart disease.

Justice Department spokesman David Dear would not comment on the tobacco share divestiture, what is delaying proclamation of the lawsuit legislation or when the statement of claim will be filed. He would only say the lawsuit is complex, timing is important and Alberta wants to see how similar cases unfold in other provinces.

Ontario, New Brunswick, British Columbia and Newfoundland have already filed lawsuits against the tobacco industry.

Ontario says it is going to sue the big tobacco companies — for $50 billion.

The province said in a news release it is seeking damages "for past and ongoing health-care costs linked to tobacco-related illness."

"Ontario is taking the next step towards recovering taxpayer dollars spent fighting tobacco-related illnesses. We are joining British Columbia and New Brunswick in initiating a lawsuit to recover health-care costs from tobacco companies," said Attorney General Chris Bentley.

The $50-billion figure represents the cost the province says it has footed for providing health care to smokers for more than half a century.

"The amount of $50 billion will have to be proven in court, of course, but that is our view of the costs of health-care-related illnesses directly tied to tobacco from 1955 until now," Bentley told reporters outside the provincial legislature. 

Ontario set the framework for the lawsuit through legislation passed this year.

The Tobacco Damages and Health Care Costs Recovery Act allows the province to sue for recovery of past, present and continuing tobacco-related damages. It also creates a method to determine the costs associated with tobacco-related illnesses and allocates liability by market share.

"The taxpayers of the province of Ontario have paid a lot of money for health-care costs directly related to tobacco use over the decades," Bentley said. "We passed legislation, which is consistent with legislation in other places.  We believe the taxpayers should be compensated for the costs that they have paid. That's what this lawsuit is about."

Douglas Lennox, a Toronto lawyer who has been involved in several lawsuits against tobacco companies, told CBC News that Ontario's case may never go before a judge. That's because British Columbia's lawsuit against the tobacco companies is already well underway, with the trial scheduled to begin a little over a year from now.

"If B.C. can win their trial, then you'll see a resolution for all of the other provinces shortly thereafter," Lennox said.

Imperial calls lawsuit 'hypocritical'

The lawsuit names 14 tobacco companies based in Canada, the U.S. and England. Among those named in the suit is Canada's largest tobacco manufacturer, Imperial Tobacco Co., a wholly owned unit of British American Tobacco of London. It sells cigarettes under such well-known brands as du Maurier and Player's.

Imperial spokesman Eric Gagnon said the suit came as no surprise given the legislation, but suggested the Ontario government was being hypocritical.

"They're collecting billions of dollars in taxes, and right now they are turning and suing the tobacco companies," Gagnon said from Montreal. "This is a legal product and we do it in the way the government dictates us to do it."

Tobacco companies in Canada operate under stringent legislation that limits advertising by cigarette companies, restricts the sale of cigarettes to minors and regulates how cigarettes can be displayed in stores.

The government also regulates other products, such as alcohol and casinos, which can pose significant health and safety risks, Gagnon noted.

"Are they going to sue those industries?" he said. "From our perspective this does not make any sense."

Bentley said he had no plans to go after other industries. He also rejected a connection between tobacco taxes and the suit, arguing the cost of health care related to smoking "far exceeds" the amount collected in taxes.

The allegations contained in the lawsuit have not been proven in court. 

Anti-smoking groups welcomed the lawsuit, but said any money the province might win should be used to fund public health projects and not go into general revenues.

"If litigation is used by government only to recover the costs of treating diseases but not used to establish ways of reducing tobacco-caused disease, justice will not be done," said Dr. Atul Kapur, president of Physicians for a Smoke-Free Canada.

The first lawsuit against tobacco companies was pursued by four U.S. states in the mid-1990s, and led to a 50-state agreement in 1999 in which the industry agreed to pay $246 billion US over a 25-year period for health-care costs that resulted from the use of its products.

Nova Scotia and Manitoba are looking for a law firm to take on a lawsuit they hope to launch against the tobacco industry to recover health care costs.

The government of Nova Scotia issued a statement saying the two provinces are seeking a firm that they expect will take on their case on a contingency basis.

That means the law firm would only get paid if the provinces win their case.

Nova Scotia Justice Minister Ross Landry said the lawsuit would aim to recover health-care costs from the 1950s to the 1980s. He said during that time, cigarette manufacturers knowingly sold a product they knew would be harmful to people's health.

Landry said the province's legal action will include about 30 years of data.

"This matter is about the actual medical evidence and other evidence that shows that the substance was addictive and that there are some issues with the tobacco companies and the disclosure of that information," said Landry.

"As a result of that action, a number of people got addicted and … we can show the correlation between tobacco and our health-care costs."

Some provinces have already launched similar lawsuits, while others have voiced intentions to do so.

Statistics from the Canadian Cancer Society and the Nova Scotia Department of Health and Wellness estimate smoking-related illnesses currently cost taxpayers about $200 million each year to treat.

Finance Minister Victor Boudreau said tobacco companies that are being sued by the province have proven to be strong investments for the New Brunswick Investment Management Corp.

'The New Brunswick Investment Management Corporation has a mandate of getting a maximum return on their investments so that our pension funds can continue to grow.'— Finance Minister Victor Boudreau

When the Liberal government launched the lawsuit against tobacco companies in 2006, two cabinet ministers said it was about holding them accountable for the soaring health-care costs attributed to those who used their products.

But Boudreau said on Tuesday when it comes to making money on the province's pension plans, it's important for investment managers to earn revenue any way they can.

"The New Brunswick Investment Management Corporation has a mandate of getting a maximum return on their investments so that our pension funds can continue to grow," he said.

The pension funds lost almost $2 billion in the markets last year, including on its tobacco stocks. But the finance minister said over the years the tobacco industry has proved to be a strong money maker.

The records released last week by the New Brunswick Investment Management Corp. show heavy investments in Imperial Tobacco, Rothmans, British American Tobacco, Philip Morris, its parent company Altria Group and R.J. Reynolds.

The provincial government agency that manages the pension funds of public servants, teachers and judges had holdings in those companies worth about $21.2 million on March 31, 2008.

Those same companies are all targets in a lawsuit launched in December 2006 by the province. New Brunswick alleges the companies failed to warn consumers of the dangers of smoking, marketed light cigarettes as safe and targeted children in their advertising campaigns. It argues those actions all led to widespread health problems and public medical costs for those who began smoking.

N.B. union wants tobacco companies snuffed out of pensions

The New Brunswick Union of Public and Private Employees, one of the largest contributors to the province's pension funds, is joining the Canadian Cancer Society and New Brunswick Lung Association in calling for the province to dump its investments in tobacco companies.

Tom Mann, the union's executive director, said his 5,800 members don't like it being invested with cigarette manufacturers.

And he said because of the amount the union contributes to the pensions that it should have some sway in where that money is parked by the pension plan.

"Certainly the people who own that money should have a say in how it's invested," Mann said.

Kenneth Maybee, the president of the New Brunswick Lung Association, said on Tuesday that the province's pension fund managers must stop investing in tobacco companies, calling the revelation an "eye-opener" that was "disconcerting."

"It's perhaps one of these cases where one arm [of the government] doesn't know where the other arm is. But I think the message will be very clear … that it's not the right thing to do," Maybee said.

While one branch of the New Brunswick government has been suing large tobacco companies, another branch has $21 million invested in them, investment records show.

The records released last week by the New Brunswick Investment Management Corp. show heavy investments in Imperial Tobacco, Rothmans, British American Tobacco, Philip Morris, its parent company Altria Group and R.J. Reynolds.

The provincial government agency that manages the pension funds of public servants, teachers and judges had holdings in those companies worth about $21.2 million on March 31, 2008.

Those same companies are all targets in a lawsuit launched in December 2006 by the province.

New Brunswick alleges the companies failed to warn consumers of the dangers of smoking, marketed light cigarettes as safe and targeted children in their advertising campaigns. It argues those actions all led to widespread health problems and public medical costs for those who began smoking.

"The optics of that aren't great," said Ellen Snider, a spokeswoman for the New Brunswick branch of the Canadian Cancer Society. 

"I don't think the government has any choice but to take a close look at this and to consider the possibility that absolutely those [investments] have to be pulled."

The government pension funds have also invested in other tobacco companies, but those are not part of the lawsuit.

Tobacco companies have called the lawsuit hypocritical since the province allowed the sale of cigarettes and profited from heavy taxes on the product.

Kenneth Maybee, the president of the New Brunswick Lung Association, said the province's pension fund managers must stop investing in tobacco companies.

"I think it's disconcerting. I think it's an eye-opener," Maybee said.

"And it's perhaps one of these cases where one arm [of the government] doesn't know where the other arm is. But I think the message will be very clear … that it's not the right thing to do."

Organizations question pensions' tobacco stakes

The Canadian Cancer Society is joined by the Canadian Medical Association, and Physicians for a Smoke Free Canada in questioning the appropriateness of public pension investments in tobacco interests.

Snider said it is especially dubious in New Brunswick because of the lawsuit.

"As an organization, we support the lawsuit wholeheartedly but have some very serious questions around the investment in tobacco companies," Snider said.

Neither Health Minister Michael Murphy nor Attorney General T.J. Burke would comment on the tobacco investments. A spokesman for the two said it would be inappropriate to comment while the lawsuit is before the courts.

The New Brunswick Investment Management Corp. also declined to comment, but John Sinclair, the agency's president, directed CBC News to the organization's responsible investment guidelines, which are posted on its website. 

Those guidelines emphasize the responsibilities of pension fund managers to make as much money as possible through investments with the minimum of risk, with no weight to be given to "non-financial investment considerations."

"In most cases we believe that the laws and regulatory agencies of the specific countries in which we invest are the best served to opine on social issues," the guidelines say. 

Pension plans took a hit last year

The government agency also announced last week that the province's pension plans suffered an 18.3 per cent loss last year due to the dramatic decline in global equity markets.

The value of net assets under management shrank by $1.6 billion in fiscal 2008-09, finishing the year with $7 billion.

The public service pension fund lost 18.43 per cent, the teachers' plan lost 18.24 per cent and the judges' plan fell by 18.46 per cent.

An anti-smoking group says it's pleased the New Brunswick government is suing 14 tobacco companies, one of which on Friday called the move hypocritical and a waste of taxpayers' money.

Smoking has cost the health-care system thousands of dollars, Kenneth Maybee, president and chief executive officer of the New Brunswick Lung Association, said in Fredericton.

An estimated 1,200 people die prematurely every year in New Brunswick from smoking-related illnesses, he told CBC News, adding that it was time New Brunswick sued.

"Congratulations to the province of New Brunswick for taking on this initiative, and we certainly will be supportive on the way through," he said Friday.

"We firmly endorse this move. It's the right thing to do."

Costly consequences for health care

Research has shown that smoking is a leading cause of lung cancer, tobacco products are addictive and exposure to second-hand smoke is harmful, Maybee said.

People who started smoking at a young age are now coping with such conditions as emphysema and acute bronchitis, he said.

"It is very painful and debilitating to them and very costly to the health-care system," he said.

Maybee said he is optimistic that the government will win a settlement, but that the lung association and other anti-smoking groups will have to make sure that part of any settlement is funnelled into prevention programs.

He said he wants the province to set up a special committee to oversee how the money from a settlement would be spent.

New Brunswick Health Minister Mike Murphy announced Thursday that the province wants to hold tobacco companies accountable for the suffering their products has caused.

He said the suit was filed on behalf of people whose health has been damaged by tobacco products, families who have lost loved ones to illnesses that resulted from tobacco use and taxpayers who have had to pay for additional costs to the health-care system because of smoking illnesses.

Damages will be 'substantial'

The province did not name a dollar figure that it is seeking because it is too early to do so, said New Brunswick Attorney-General T.J. Burke.

"Costs can range in the millions, the tens of millions of dollars, and I don't want to … identify a specific number, because those numbers can change," he said.

"Those numbers, of course, are going to be substantial because we believe the province of New Brunswick has spent millions of dollars in health care for citizens who have tobacco-related injuries or damages." 

B.C. was the first province to launch a lawsuit against the tobacco industry. Manitoba, Saskatchewan, Newfoundland and Labrador, and Nova Scotia have legislation that enables them to do so.

Imperial Tobacco, named in the suit, issued a statement on Thursday that said the lawsuit is simply a cash grab and not in the interests of taxpayers.

"Governments are senior partners in the tobacco industry," Benjamin Kemball, president and chief executive officer of Imperial Tobacco Canada, said from Montreal.

"Governments in Canada earn from tobacco 18 times the profits of the entire tobacco industry," he said. "They heavily regulate the industry and have been fully aware of the risks associated with tobacco products for decades."

Governments across the country collect about $8 billion in taxes from the tobacco industry a year, Kemball said. New Brunswick's share of the tobacco tax revenue is about $80 million a year.

"It is hypocritical that governments, like New Brunswick, turn around and sue a legal industry that they oversee and license while allowing an illegal tobacco industry to flourish."

He said he thinks the lawsuit will take years to resolve and, ultimately, will not be successful.

"This lawsuit is a waste of taxpayers' money and will never result in the monetary windfall the New Brunswick government hopes for," he added.

Kemball said the only real winners will be the lawyers involved in what he called "jackpot justice."

Two lawyers from Saint John and Monctonwill help New Brunswick take on tobacco companies.

Chris Correia of Saint John and Phillippe Eddie of Moncton join a consortium of lawyers who will try to make the legal case that big tobacco should pay the province for the medical cost of treating smokers.

Attorney General and Justice Minister T.J. Burke said experts in the departments of health and justice have been doing research to determine what those costs have been.

"Through this information-gathering process, we'll be able to better quantify exactly how much it has cost the province of New Brunswick with respect to attributable tobacco-related wrongs on the part of tobacco-related manufacturers," he said.

Burke said his office offered the legal jobs to anybody who was interested in taking on a very costly, lengthy and technical lawsuit.

Those who applied were then graded.

"An evaluation team was put together by representatives from the Department of Justice and the Department of Health who evaluated their ability, their resources and also, the proposal that they put forward, which largely had a big part in determining who was going to be the lead for New Brunswick."

Burke said experience was important, but the other key factor was how the lawyers would bill the province.

The consortium of lawyers are working on a contingency fee. They will receive a percentage of whatever the province recovers through legal action, to a maximum of 25 per cent.

The province proclaimed its first anti-tobacco lawsuit legislation earlier this year, and will be the second province to haul tobacco companies to court. British Columbia was the first province to pass a law enabling itself to sue cigarette makers.

Burke says it could take years forNew Brunswick's lawsuit to make it to the courts, if it doesn't settle.

New Brunswick's Liberal government intends to sue the tobacco industry for health care costs associated with smoking.

The move follows a law passed by the previous Tory government to enable anti-tobacco lawsuits.

British Columbia was the first province to pass a law enabling itself to sue tobacco companies. The law stood up to a Supreme Court challenge.

New Brunswick is now set to be the second province to haul the tobacco industry into court. Health Minister Mike Murphy says the province wants to recover the money that taxpayers have spent treating sick smokers.

"Who among us doesn't know someone whose life has been cut short because of smoking?" Murphy asked during a Thursday afternoon press conference. "And who wouldn't want us to take whatever steps to prevent this in the future? Tobacco companies certainly know the pain and suffering caused by the use and exposure of their products, and we believe it's time they be held accountable."

Attorney General T.J. Burke says the province is requesting proposals from top law firms across North America to take New Brunswick's case for a share of the settlement.

"Our act alters the limitation periods for suits to recover health care costs. It allows government to take direct action against tobacco companies by eliminating the need to prove individual cases to advance suit. And it provides for liability if government can prove on a balance of probability that the type of tobacco product sold can cause or contribute to diseases."

Canadian Cancer Society spokeswoman Lynn Ann Duffley backs the government 100 per cent. "We're very supportive of this move forward. It indicates to the tobacco industry that we're serious about tobacco control. It will hold them accountable for their practices in the past," shesaid. "We know they aggressively marketed in children and to women, that they withheld internal health research that communicated that their products were deadly and addictive."

The government plans to proclaim its tobacco lawsuit legislation and select a law firm to wield it early in the new year.