The Supreme Court of Canada has ruled that British Columbia (BC) has the constitutional authority to lead a class action lawsuit on behalf of multiple Canadian governments against pharmaceutical companies for damages linked to the opioid epidemic. This landmark decision, issued on 29 November 2024, confirms the validity of the Opioid Damages and Health Care Costs Recovery Act, a BC law enacted in 2018 to address the devastating impact of opioids on public health.

Opioids represent a varied group of powerful, addictive, and cost-effective substances, encompassing opiates such as morphine and codeine, as well as synthetic options like oxycodone (found in OxyContin and Percocet), hydrocodone (known as Vicodin and Norco), and fentanyl. Historically, these medications have been utilized for pain relief, demonstrating efficacy in managing acute pain. The strength and accessibility of opioids have contributed to their widespread use in both medical and recreational contexts. The rapid increase in the overuse and overdose deaths attributed to this class of drugs is commonly known as the opioid epidemic.

Faced with rising healthcare costs and an ongoing public health crisis, BC introduced legislation to create a legal pathway for holding opioid manufacturers, distributors, and consultants accountable for contributing to opioid-related harm. Section 11 of the Act enables BC to initiate a class action on behalf of federal, provincial, and territorial governments, which can choose to opt-out if they prefer to pursue separate litigation. BC positioned itself as the representative plaintiff for a proposed class consisting of all government entities that incurred healthcare and treatment expenses related to opioids.

Pharmaceutical companies and other defendants challenged the provision, arguing that Section 11 exceeded BC’s jurisdiction. They claimed that allowing BC to represent other provinces infringed their rights to legislate and litigate independently. The defendants further contended that the framework would undermine the sovereignty of other governments, effectively binding them to decisions made under BC’s authority.

The Supreme Court rejected these arguments, ruling that Section 11 serves as a procedural tool rather than a substantive encroachment on the rights of other governments. The court emphasized that the provision facilitates litigation without compelling provinces or territories to participate. Justice Andromache Karakatsanis, writing for the majority, explained that the mechanism respects the constitutional principles of intergovernmental cooperation and does not violate provincial autonomy.

“Governments are free to legislate within overlapping areas of jurisdiction for valid purposes, especially in response to national crises like the opioid epidemic,” Justice Karakatsanis wrote. She highlighted that the modern complexities of governance demand increased collaboration between jurisdictions, particularly in cases that transcend provincial boundaries. The court stressed that multi-Crown class actions are vital to ensuring justice is not hindered by jurisdictional divides.

The decision clears the way for all Canadian governments to remain part of the unified lawsuit spearheaded by BC. The case will proceed to civil trial at the BC Supreme Court if certified as a class action. This approach aims to streamline the legal process, allowing affected governments to pursue damages collectively rather than through fragmented lawsuits.

This is not the first time BC has taken a pioneering role in healthcare cost recovery litigation. The province set a precedent in the 1990s by suing tobacco companies for healthcare expenses associated with smoking-related illnesses. That legal battle laid the foundation for similar actions across Canada. As of October 2024, negotiations in the tobacco case have resulted in a proposed settlement of 32.5 billion Canadian dollars to resolve claims nationwide.

The opioid epidemic, which has claimed thousands of lives across Canada, represents a critical public health issue requiring a coordinated response. With the Supreme Court’s endorsement of the multi-Crown litigation framework, BC’s lawsuit has the potential to hold opioid manufacturers accountable while setting an example of collaborative governance in addressing nationwide crises.