In a landmark decision, the Supreme Court of Canada has upheld British Columbia’s authority to file a class-action lawsuit against opioid manufacturers, distributors, and retailers on behalf of other provinces, territories, and the federal government. The 6-1 ruling validates the constitutionality of B.C.’s Opioid Damages and Health Care Costs Recovery Act (ORA), allowing the province to seek compensation for health-care costs associated with the opioid crisis.
The case stems from a 2018 lawsuit filed by B.C. against 49 pharmaceutical companies, including major players like Shoppers Drug Mart, Sanis Health, and McKesson Canada. The province alleges that these companies contributed to the opioid epidemic by falsely marketing their products as less addictive and less prone to abuse than other pain medications. B.C. contends that this misinformation has fueled widespread addiction, illness, and death across Canada.
At the heart of the case is Section 11 of the ORA, which permits B.C. to bring collective legal action on behalf of other jurisdictions. Pharmaceutical companies challenged the provision, arguing it overstepped constitutional boundaries. However, the Supreme Court majority determined that Section 11 is a procedural mechanism falling within provincial authority over justice administration.
Justice Andromache Karakatsanis emphasized the importance of cross-border cooperation in addressing national crises like the opioid epidemic. “The opioid epidemic spanning our country is a stark example of a crisis which attracts this co-operation and comity,” she wrote, highlighting the role of national class actions in achieving justice and consistency for those harmed.
The ruling builds on precedent set by B.C.’s successful lawsuit against tobacco companies, which forced them to cover tobacco-related health-care costs. The decision paves the way for similar collective legal efforts, with no provinces or territories opting out of B.C.’s proposed class-action to date.
Justice Suzanne Côté dissented, citing concerns about federalism and the encroachment on other provinces’ legislative sovereignty. She argued that while collaboration is important, it must align with Canada’s constitutional framework.
The Supreme Court’s decision marks a significant step in holding pharmaceutical companies accountable for their role in the opioid crisis, though none of the allegations have been proven in court. The lawsuit seeks to recover billions in damages for health-care costs incurred by governments across Canada.
