Tobacco Licence Fee Recovery Litigation
Until 1997, Retailers throughout Australia paid license fees to
state governments for the right to sell tobacco. The fees were paid
by the retailer to the major tobacco companies who were then to pay
the State governments. In 1997 and 2001 the High Court held that
the licence fees charged by the State governments were
unconstitutional and that retailers were entitled to recover the
licence fees paid to the tobacco companies. However the tobacco
companies refused to repay the licence fees paid over a 5 week
period in 1997 totalling more than $100 million, and strongly
contested litigation brought to force them to repay the money.
The action
Maurice Blackburn commenced actions in each Australian state and
territory on behalf of more than 10,000 Australian retailers
seeking recovery of the licence fees paid. The case was initially
heard in the NSW Supreme Court.
Settlement
The defendant tobacco companies agreed to settle with eligible
claimants prior to judgment being delivered. Eligible claimants
recovered all or the majority of their losses.