Federal Government Not Liable for Tobacco Damages

Taxpayers could have paid billions of dollars.

It's tough, sometimes, to be a tobacco giant. Canada's Supreme Court ruled unanimously on Friday that the federal government cannot be held liable for damages in lawsuits against tobacco companies after they tried to declare the government a co-defendant in two major cases. Imperial Tobacco is being sued for the toxic emissions from so-called "light" and "mild" cigarettes, while the province of British Columbia wants tobacco companies to pay for smoking-related health-care costs. Had it lost, the government could have been responsible for billions of dollars in damages. Supreme Court judges ruled that the government acted in good faith, a statement many found quite surprising.