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Imperial Tobacco Fairly Priced 

Imperial Tobacco's (ITY) share price is largely "up with events" following dismissal Tuesday of McTear tobacco litigation claims, says Lehman Brothers. Notes case is important because it provides precedent for further litigation in Scotland. Believes company is on track for +10% EPS growth in 05.

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FTSE 100 risers: Imperial up on court ruling 

Imperial Tobacco moved up the FTSE 100 leaderboard today as it won the first UK smoking court case.

Margaret McTear brought a £500,000 case against Imperial after her husband died of lung cancer at the age of 48. She blamed glamorous advertising for the start of his habit, which increased to 60-a-day, though the Court ruled that the public were well aware of the health risks of smoking in 1964, when McTear started.

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LETTER: Seduction, the 1960s and cigarettes 

Sir: You report ("Widow loses 12-year compensation battle with cigarette firm", 1 June) that Lord Nimmo Smith said, "I am satisfied that ... by 1964 the general public in the United Kingdom ... were aware of the health risks associated with smoking".

I am satisfied that his Lordship lived in a world that was completely detached from anybody else's in the 1960s. I was seduced into smoking by the culture of the times, led by advertising. Commercials encouraged, nay educated everybody, that not to smoke left you a social outcast.

Health warnings! Only that smoking a certain brand of cigarette cured all ills of modern living, whilst enhancing your attractiveness and social standing. If it were commonly known that smoking held health risks, why did it take the insurance industry nearly 20 years before penalising potential customers who smoked?

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• Tobacco giant breathes easy as widow's case fails 

A SCOTTISH judge yesterday dealt a devastating blow to the anti-smoking movement after dismissing a widow’s claim that a cigarette company was responsible for her husband’s death from lung cancer.

In a test case that could have opened up the floodgates for hundreds of similar claims, Margaret McTear had sued Imperial Tobacco for £500,000.

But yesterday’s ruling against Mrs McTear was so comprehensive that it raised doubts about whether an action against the tobacco industry could ever be successfully pursued in Scotland.

Cameron Fyfe, the lawyer who brought Mrs McTear’s case to court on a no win, no fee basis, immediately dropped 120 similar cases he had prepared.

Doctors’ leaders and anti-smoking groups condemned the decision, but Imperial Tobacco said it hoped it would dissuade other people from bringing similar claims. . . .

Lord Nimmo Smith said there was no evidence that Imperial had ever accepted a causal connection between smoking and disease, and the fact that it had never sought to challenge the public health message that cigarette smoking did cause lung cancer did not constitute such an admission. . . .

THE cigarette giant Imperial Tobacco yesterday warned it may force Margaret McTear to sell her home to pay part of its legal costs

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Given that there are possible causes of lung cancer other than cigarette smoking, and given that lung cancer can occur in a non-smoker, it is not possible to determine in any individual case whether, but for an individual’s cigarette smoking, he probably would not have contracted lung cancer.
Lord Nimmo Smith, in his McTear decision.

There is no breach of a duty of care on the part of a manufacturer if a consumer of the manufacturer’s product is harmed by the product, but the consumer knew of the product’s potential for causing harm prior to consumption of it. The individual is well enough served if he is given such information as a normally intelligent person would include in his assessment of how he wishes to conduct his life, thus putting him in the position of making an informed choice.

British widow loses bid to sue Imperial Tobacco over husband's cancer death 

The widow of a British lung cancer victim failed in a legal bid to hold Imperial Tobacco responsible for his 1993 death in a landmark case that, by chance, was decided on World No Tobacco Day.

Margaret McTear, 60, had been hoping to win 500,000 pounds (734,000 euros, 909,000 dollars) from the global tobacco giant at a Scottish court.

But judge Lord William Nimmo Smith rejected McTear's claim that Imperial Tobacco failed to do enough to warn of the dangers of smoking.

Her husband, Alfred McTear, a former telephone installer, was diagnosed with terminal lung cancer in 1992 after smoking up to 60 John Player king-size cigarettes a day at the height of his habit.

He initiated legal action against Imperial Tobacco in January 1993. Three months later, he died at the age of 48, leaving his wife to continue the court battle.

The family's lawyers, led by Colin McEachran, argued that when the father-of-three started smoking in 1964, aged 19, there were no warnings on cigarette packets.

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• MRS. MARGARET McTEAR v. IMPERIAL TOBACCO LIMITED, 31 May 2005, Lord Nimmo Smith (c.650pp) 

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• UPDATE 2-UK's Imperial Tobacco wins landmark smokers case 

The widow of a man who died from lung cancer failed on Tuesday in her bid to sue British tobacco company Imperial Tobacco (IMT.L: Quote, Profile, Research) in the first ever UK smokers trial.

Alfred McTear smoked mainly Imperial brands and died, aged 48, of lung cancer over 10 years ago, months after filing his claim against Imperial. He started smoking in 1964, seven years before health warning labels were put on UK cigarette packets.

McTear's wife continued the claim which smokers and investors saw as a test case for thousands more.

The judge at the Edinburgh court threw out Margaret McTear's claim for 500,000 pounds ($911,700) damages and cleared Imperial Tobacco of responsibility for her husband's lung cancer. . . .

He had considered 30 days of evidence and 12 days of lawyers' arguments, resulting in a 350,000 word legal opinion. The 1121 pages take up four bound volumes.

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Imperial Tobacco Escapes Damages in U.K. Court Case (Update3) 

Imperial Tobacco Group Plc, Europe's second-biggest cigarette maker, escaped a damages award in a case brought by a Scottish widow whose husband died from lung cancer. The shares climbed as much as 3.2 percent.

Margaret McTear had sued for 500,000 pounds ($1 million), claiming her late husband Alfred became addicted to smoking before health warnings appeared on cigarette packets. The claim was dismissed by the Court of Session, Scotland's highest civil court.

The case against Bristol, England-based Imperial Tobacco, the maker of Davidoff cigarettes, was the first of its kind in the U.K. to go to a full hearing. Smokers in the country have never successfully sued a cigarette company. Around 106,000 Britons die from smoking-related diseases ever year, accounting for a fifth of all U.K. deaths, according to Action on Smoking and Health. . . .

Imperial Tobacco was ``please but not surprised'' by the decision, according to a statement. ``We have never lost or settled any tobacco litigation and will continue to defend ourselves robustly against any further speculative claims,'' the company said.

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Widow loses tobacco case 

Widow Margaret McTear, 60, today lost her bid to sue Imperial Tobacco in a landmark case following the death of her husband Alfred from lung cancer in 1993.

Lord Nimmo Smith has spent the past 15 months considering his decision in the long-running case at the Court of Session in Edinburgh, in which Mrs McTear, from Ayrshire, was seeking £500,000 in damages. . . .

Reading his opinion summary in court, the judge said: "The pursuer's case failed on every issue on which I would have needed to find in her favour were I to hold the defenders liable to her in damages."

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McTear vs Imperial Tobacco: Decision Day for Historic Legal Case 

One of Scotland's longest running legal sagas ended today (31st May 2005), with Lord Nimmo Smith delivering his verdict in the McTear vs Imperial Tobacco case at Edinburgh's Court of Session.  In his opinion he ruled that Imperial were not responsible for the death of Alfred McTear.

Today's judgment is a disappointment for Margaret McTear, who sued Imperial Tobacco for £500,000 damages following the death of her husband Alfred McTear from lung cancer.  Mrs McTear felt that Imperial Tobacco knew that cigarettes kill and that they hid this knowledge from the general public for as long as they could, condemning thousands to an early and preventable death.  This case was the first action of its kind to have reached a supreme court anywhere in Europe.

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• Anti-Smoking Group in Tribute to Tobacco Widow 

Anti-smoking campaigners paid tribute today to the widow who took on one of the world’s biggest tobacco companies.

Margaret McTear from Ayrshire attempted to sue Imperial Tobacco, which she claimed failed to warn her late husband Alfred of the dangers of smoking cigarettes.

Maureen Moore, chief executive of pressure group ASH Scotland, said: “I’d like to pay tribute to Margaret McTear, for her to have held on for 12 years against Imperial Tobacco required determination and courage. Imperial did everything they could to deny her a day in court.

“Today’s ruling is a setback for those who want to see the tobacco industry held responsible for cigarette-related deaths due to the fact that they failed to warn consumers about the dangers of their product. . . .

“Imperial Tobacco still denies there is a link between smoking and lung cancer. Today we call on Imperial Tobacco to stop denying what the rest of the world accepts. . . .

“Imperial Tobacco argued in this case that the tobacco industry was not responsible for tobacco-related deaths of those who took up smoking before the introduction of health warnings on their cigarette packets.

“And yet today in the developing world, across Africa and Asia, there are 40 developing countries where there are no health warnings on cigarette packets. . . .

“Imperial Tobacco’s lack of a sense of sense of corporate responsibility is almost as deadly as the cigarettes they sell.”

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Imperial Tobacco must accept that smoking cigarettes causes cancer and continues to kill millions of people around the world. . . . today in the developing world, across Africa and Asia, there are 40 developing countries where there are no health warnings on cigarette packets. . . . Imperial Tobacco’s lack of a sense of sense of corporate responsibility is almost as deadly as the cigarettes they sell.
Maureen Moore, chief executive of pressure group ASH Scotland.

Court rejects tobacco test case 

A widow whose husband died of lung cancer has lost her landmark court battle against the cigarette giant Imperial Tobacco.

Alfred McTear, who smoked 60 a day, died of lung cancer at the age of 48.

His widow Margaret, from Beith in Ayrshire, sued the firm for £500,000 in the first case of its kind in Britain.

She told the Court of Session he became addicted to smoking before health warnings appeared on cigarette packets. . . .

While it was not in dispute that Mr McTear died of lung cancer, there was no proof that Imperial Tobacco's product had caused the cancer which killed him, the judge said. . . .

He said: "I am also satisfied that Mr McTear was aware, in common with the general public, well before 1971 of the publicity about the health risks associated with smoking, and in particular the risk of lung cancer." . . .

Maureen Moore, chief executive of anti-smoking organisation Ash Scotland, branded the judgement a "disappointment" but said she was encouraged by measures such as the planned ban on smoking in public places.

She said: "Today we call on Imperial Tobacco to stop denying what the rest of the world accepts. Imperial Tobacco must accept that smoking cigarettes causes cancer and continues to kill millions of people around the world."

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• Imperial Tobacco wins landmark smokers case 

The widow of a man who died from lung cancer failed on Tuesday in her bid to sue Imperial Tobacco <IMT.L> in the first ever UK smokers trial seen as a test case for thousands more. . . .

The judge at the Edinburgh court threw out Margaret McTear's claim for 500,000 pounds damages and cleared Imperial Tobacco of responsibility for her husband's lung cancer.

"I'm disappointed because ... it means ordinary people will think twice about suing for damages," she told reporters outside the court. . . .

Her lawyer Cameron Fyfe said it had been a very difficult case pitting a lonely woman against a multinational giant.

"I think it is very difficult to pursue a case without funding against one of the biggest companies in the world," he told reporters. "We would want to appeal but it is just impossible. The costs would be tremendous."

He said the company has slapped a lien on Margaret McTear's three-bedroom terrace house, but he did not think they would pursue a claim for costs as it would bankrupt her. . . .

Delivering his judgment to a packed courtroom on World No Tobacco Day, Lord Nimmo Smith said every one of Margaret McTear's arguments had failed.

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TOBACCO CASE TIMELINE 

:: 1964: Nineteen-year-old Alfred McTear begins smoking 10 cigarettes a day.

:: May 1992: Mr McTear, now smoking up to 60 a day, diagnosed with lung cancer.

:: January 28, 1993: Mr McTear launches civil case against Imperial Tobacco at Court of Session in Edinburgh.

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Judge Rules Against Widow In Tobacco Case 

A widow whose husband died from lung cancer has lost her legal battle against one of the word's biggest tobacco companies.Margaret McTear claimed Imperial Tobacco failed to warn her husband Alfred that smoking could give him cancer.But the judge in the case said: "The pursuer's case failed on every issue on which I would have needed to find in her favour." . . .

The case took 10 years to reach Lord Nimmo Smith at the Court of Session in Edinburgh in October 2003.

During the earlier hearing, Mrs McTear said smoking was advertised as being glamorous in the 1960s.

But Lord Nimmo Smith, who spent 15 months writing his decision, said: "I am satisfied that advertising had nothing to do with his reasons for starting to smoke.

"He started smoking because it was socially acceptable and most young people started smoking as part of becoming adults."

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I am satisfied that advertising had nothing to do with his reasons for starting to smoke. He started smoking because it was socially acceptable and most young people started smoking as part of becoming adults.
Lord Nimmo Smith, who spent 15 months writing his decision on Scotland's McTear case.