Tobacco challenge will be heard in the Commercial Court

A legal challenge by tobacco companies, and others, to new regulations imposing restrictions on the advertisement and promotion…

A legal challenge by tobacco companies, and others, to new regulations imposing restrictions on the advertisement and promotion of tobacco products, will be heard at the Commercial Court later this year.

Mr Donal O'Donnell SC, for several tobacco companies, said the case involved a claim for damages. If the disputed regulations came into effect as planned on December 15th next, they would cost his clients much more than the €1 million minimum cost limit required for any case coming before the Commercial Court, a division of the High Court, he said.

Mr O'Donnell was advocating that the case be heard by the Commercial Court rather than the High Court. However, Mr Frank Clarke SC, for the Minister for Health and Children and the State, opposed that proposal as the case largely centred on constitutional grounds.

Mr Clarke said he was not disputing there were significant commercial interests involved in the case and it needed to be heard soon because of possible impending legislation.

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However, his clients would not necessarily implement the regulations on December 15th and certainly would not do so before that date. It was the State's view this was a constitutional action with a commercial end to it.

After hearing from both sides, Mr Justice Kelly directed that the case be heard in the Commercial Court and said he anticipated it would open in October next.

Mr O'Donnell expressed concerns that the tobacco companies were required to make provision for the new regulations, and the judge said he would consider next week whether the matter should be heard earlier, perhaps in August.

In deciding that the case should be heard by the Commercial Court, the judge said there was agreement it involved commercial considerations, was urgent and would benefit from case management.

He noted the Commercial Court had come into operation on January 12th last and most cases admitted to it to date had been decided or had settled within a timescale well ahead of ordinary court listings. This was the first time an application to have a case heard there had been seriously challenged.

The proceedings by the tobacco companies were initiated last April and involved some 16 companies engaged in the supply and distribution of tobacco products and other non-tobacco material, the judge said. Other plaintiffs were involved in supplying cigarettes to vending machines and one is a newsagent representing a number of retail outlets in the State.

The plaintiffs were claiming the disputed provisions of the 2002 Act are unconstitutional and in breach of EU law.