Background
The British Columbia government passed the Tobacco Damages and Health Care Costs Recovery Act that granted the government power to sue tobacco manufacturers for breach of duty to recover costs on the health care system for people suffering from tobacco related illnesses. The tobacco companies sued under the Act challenged its constitutional validity.
On June 5, 2003, the Supreme Court of British Columbia found that the Act violated the territorial limits of provincial law and was unconstitutional. The Court of Appeal, in May 2004, overturned the decision on the basis that the pith and substance, i.e. the dominant characteristic, of the law fell under the property and civil rights provision of the Constitution Act, 1867. The challenge against judicial independence, and rule of law were also dismissed.
On June 22, 2004, Imperial Tobacco Canada appealed the case to the Supreme Court of Canada. On the same day, four other tobacco companies and the Canadian Tobacco Manufacturers' Council also filed for appeal. On December 17, 2004, the Supreme Court agreed to hear the case and it upheld the decision of the Court of Appeal on September 29, 2005.
Three issues were put to the Court:
- Is the Act ultra vires the province by reason of extraterritoriality?
- Is the Act constitutionally invalid as being inconsistent with judicial independence?
- Is the Act constitutionally invalid for violating the rule of law?
The Court answered "no" to all of these issues.
Read more about this topic: Imperial Tobacco V. British Columbia
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