Class Counsel Fee

A hearing will take place on January 29, 30 and 31, 2025 before the Ontario Superior Court of Justice. The purpose of the hearing is to determine whether to approve the CCAA Plans of Arrangement to resolve all claims against the Tobacco Companies.

At the end of the hearing, the Court will also be asked to approve the legal fees and disbursements of the lawyers who have been representing Quebec class members since 1998 (“Class Counsel Fee”).

The hearing will be public and you will be able to view it remotely. A link will be made available on this page once it is available.

Quebec Class Counsel have also prepared a detailed background document explaining the Quebec Class Counsel Fee, the risks taken on by the lawyers, the work completed, and the results they’ve obtained for class members. This document is a summary of the themes that will be addressed in the formal motion to the Court.

On December 13th, 2024, Quebec Class Counsel also asked the Ontario Court to approve a formal notice campaign to class members regarding the fee approval hearing. You can see a copy of the notice they have asked the Court to approve here:

Class Counsel have represented class members since 1998. The class actions they lead against the tobacco industry are widely regarded as unprecedented. They have been the longest, most complex, and most intensely contested class actions to ever succeed in Canadian history.

Class Counsel’s team initially consisted of four law firms: 1) Trudel & Johnston, 2) Lauzon Bélanger (later Lauzon Bélanger Lespérance), 3) Kugler Kandestin and 4) De Grandpré Chait. Over the course of the class actions’ history, Trudel & Johnston and Lauzon Bélanger Lespérance merged to form Trudel Johnston & Lespérance. The law firm Fishman Flanz Meland Paquin was later added to the Class Counsel team.

If the CCAA Plans of Arrangement are approved, the Tobacco Companies will pay $32.5 billion to their creditors. This amount includes $4.119 billion to directly compensate CQTS-Blais class members and their heirs (as well as heirs of heirs) through the Quebec Administration Plan. It also includes a $131 million contribution to a public interest foundation in settlement of claims of addicted Quebec smokers in the Létourneau class action.

Now that class members will receive substantial compensation as a result of their work, Quebec Class Counsel are asking the Court to approve their fee.

In accordance with their fee agreement with the CQTS, Quebec Class Counsel are seeking 22% of the amount recovered for the class members. This represents $906,180,000, plus applicable taxes.

This amount includes not only the legal fees intended to compensate the lawyers for the work performed in the last 26 years and their continued future role in the Quebec Administration Plan, but also tens of millions of dollars in costs and disbursements incurred throughout the litigation and for future costs, including the services of Proactio to facilitate the claims process for class members.

As is standard in class actions, Class Counsel have prosecuted these cases on a contingency fee basis. This means that:

• Class Counsel remuneration was conditional on their ability to win the cases and to obtain monetary compensation for the benefit of class members;
• Their remuneration is limited to a fixed percentage of the compensation ultimately obtained, which the Court must confirm is fair and reasonable;
• Class Counsel have not been paid any legal fees over the past 26 years;
• They have also advanced large amounts to support the success of the litigation.

In class actions, Canadian courts consider a number of factors in determining whether fees sought by class counsel are fair and reasonable:

• the fee agreement between the representative plaintiff and class counsel;
• the risks assumed by class counsel at the outset of and throughout the case;
• the results obtained for the benefit of class members;
• the time and effort devoted by class counsel to the pursuit of the litigation;
• the stage at which the litigation has been resolved.

Class action fee agreements in Quebec typically range from 20% to 33.33%, plus taxes, of any amount recovered for the benefit of the class. In addition, the costs of claims administration and disbursements are generally paid out of the funds obtained for the class over and above the percentage set to compensate class counsel. In the present case, the fee sought by Quebec Class Counsel is inclusive of all costs and disbursements.

Class members will not be required to pay any amount in order to obtain assistance from Quebec Class Counsel and Proactio in filing claims for compensation under the Quebec Class Action Administration Plan or to seek guidance in that regard.

The full motion record for the approval of the Class Counsel Fee has been filed on January 13, 20225 and is now available.

Quebec Class Counsel have also prepared a detailed background document which summarizes the key themes that will be covered in that motion record. The document explains the Quebec Class Counsel Fee, the risks taken on by the lawyers, the work completed, and the results they’ve obtained for class members.

These motion materials will contain extensive evidence, including affidavits from the senior lawyers involved in the litigation over the course of the last 26 years and extensive documentary evidence, regarding:

1. The nature, complexity, and extent of the work carried out by Class Counsel and their teams throughout the history of the class actions since 1998;
2. The risks assumed, challenges faced and opportunity costs borne by Class Counsel in the pursuit of the class actions over the course of the litigation;
3. The results obtained, both in terms of direct financial compensation for class members, their families and heirs, as well as the larger social impact and public interest of the litigation;
4. The terms of the fee agreement between Class Counsel and the representative plaintiff, the CQTS;
5. The complete list of disbursements and other costs related to the litigation to be paid out of the Class Counsel Fee; and
6. Complete accounting of past costs and anticipated future costs related to the claims facilitation process to be carried out by Proactio.

Class Members do not need to attend the Hearing in January 2025 in order to be eligible for compensation nor do they need to fill out any forms at this time.

If the Ontario Court approves the CCAA Plans of Arrangement, a notice will be sent to Class Members explaining the steps required to submit a claim for compensation.

Any Class Member who has questions or concerns about the Class Counsel Fee is encouraged to contact Class Counsel directly at no cost (free of charge).

For questions about the Class Counsel Fee, contact Trudel Johnston & Lespérance by email at [email protected] with the word “TABAC” in the subject line.

For any other questions, contact Proactio:
By email: [email protected]
By phone: 438 384-7230
Toll-free: 1 888 880-1844

Any Class Member who wishes to object to Class Counsel’s Fee must do so by 5 p.m. EST on January 21, 2025 by submitting the form below.

Any objection submitted will be provided to the Court by Class Counsel.