UPDATE 2-Canada court orders tobacco companies to set aside almost C$1 bln

(Adds comment from Imperial Tobacco)
By Alastair Sharp
TORONTO, Oct 27 (Reuters) - A Canadian appeal court on
Tuesday ordered two major tobacco companies to set aside a
combined C$984 million ($742 million) while they challenge
billions of dollars in damages awarded to smokers in the
province of Quebec.
The more than C$15 billion in damages awarded in June, if
upheld in an appeal of two class-action lawsuits, would
compensate some 100,000 Quebec smokers and ex-smokers who allege
the companies knew since the 1950s that their product was
causing cancer and other illnesses and failed to warn consumers
adequately.
Imperial Tobacco Canada Ltd - a subsidiary of British
American Tobacco Plc BATS.L - must put aside C$758 million,
and Rothmans, Benson & Hedges Inc - a subsidiary of Philip
Morris International PM.N - must deposit C$226 million, the
Quebec Court of Appeal said.
Imperial said it was disappointed with the decision, as it
does not believe it should have to secure a payment before all
appeals are exhausted and a final judgment is rendered.
"Imperial Tobacco Canada continues to disagree with the
overall judgment rendered by the Superior Court of Quebec," it
said in a statement. "It is unjustified to hold legal
manufacturers responsible for the personal choices of adult
consumers and it will continue to defend that position as its
appeals proceed."
The court in July said that the two companies plus a third,
Japan Tobacco Inc's 2914.T JTI-Macdonald Corp, would not have
to make preliminary deposits.
"This is a major win for victims and a significant loss for
tobacco companies," Rob Cunningham, a senior policy analyst at
the Canadian Cancer Society, said via email.
Launched in 1998, the class action was considered to be the
largest civil case in Canadian history, marking the first time
tobacco companies have gone to trial in a civil suit in the
country.
The companies were ordered to set aside the deposits in six
and seven quarterly payments stretching to mid-2017, while a
hearing on the appeal is scheduled for the autumn of 2016.
($1 = 1.3266 Canadian dollars)