WINNIPEG — A lawsuit filed on behalf of military veterans exposed to Agent Orange and other defoliants has cleared another legal hurdle.

The Manitoba Court of Appeal has ruled the case can proceed in Manitoba, even though the defoliants were sprayed at Canadian Forces Base Gagetown in New Brunswick.

The court rejected an appeal by the federal government, saying many of those affected now live in different provinces, including Manitoba.

Veterans and civilians who lived on or near Gagetown are suing the government, claiming they were wrongly exposed to toxic spraying in the 1950s, 60s and 70s.

The government has offered to compensate only people who were exposed to Agent Orange in 1966 and 1967.

The lawyer heading up the lawsuit, Tony Merchant, says he is hoping the case can now proceed quickly, because some of the plaintiffs are getting old and dying.