This post focuses on the amount of compensation that would flow to provincial governments, injured smokers and other parties under the proposed settlement between tobacco companies and those suing for damages.
The figures shown below (and in the downloadable fact sheet) are taken from the version of the settlement that is written with BAT-Imperial Tobacco Canada in mind.
Two and a half cents on the dollar for provincial governments
The overall claims of the provinces were not based on their initial court filings, but were established through a bespoke formula provided by a consultant (Dr. Glenn Harrison) and detailed in Schedule "G" to the settlement. The claims of the provinces totalled $944.5 billion, making up 98% of the total claims of $964.1 billion.
A total of $32.5 billion is provided for in the settlement, representing 3.4% of the total identified claims. Each province will receive 2.6% of the amount of its claim, and the total to be provided to provinces is equal to 76% of the payments.
Thirty to fifty cents on the dollar for eligible smokers.
Quebec class action victims were awarded $13.7 billion by Quebec courts and will receive $4.12 billion. Ignoring inflation, they will receive 30% of their court award. Their claim represents 1.42% of the total claims and 12.7% of the payments.
The Pan Canadian Claimants (smokers in other parts of Canada) will receive 50% of the calculated equivalent of the amount awarded to Quebec claimants, albeit with different eligibility criteria based on limitation periods. Their claims make up 0.52% of the total claims and 7.8% of the payments
Other payments
Tobacco farmers will receive 51.6% of their claim of $29 million dollars (about 3 hundredths of a percent of the total claims)
A foundation will be created, and $1 billion will be provided for its operations. This represents about 3% of the total compensation.
