Lawsuits

Research

Tobacco-friendly science escapes scrutiny in courtroom
Researchers with the Tobacco Control Resource Center and Northeastern University have found that although the tobacco industry helped fund the attack on "junk science," it has created its own dubious scientific scholarship for its expert witnesses. They recommend that plaintiffs' counsel should be proactive in using Daubert hearings to exclude the tobacco industry defendants' scientific expert witnesses by introducing documentation. View the abstract for more information.

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National

Tobacco companies ask for dismissal of suit to recover Medicare costs
Defendants Philip Morris USA, Lorillard Tobacco, the Liggett Group, and R.J. Reynolds have requested that a judge dismiss a lawsuit filed against them by the United Seniors Association seeking to recover $60 billion in Medicare costs for smoking-related illnesses. The suit argues that tobacco companies hid the addictive nature of their products and sought to enhance their addictiveness. The tobacco companies argue that United Seniors does not have legal grounds to sue because it is seeking to recover alleged losses by the federal government and is not claiming any injury of its own. Click here for more information.

CREW granted right to depose key Justice Department official in effort to investigate position change in case against tobacco companies
In order to determine why the government dramatically changed its position by reducing the monetary amount requested in its case against the tobacco industry, Citizens for Responsibility and Ethics in Washington (CREW) requested all records related to the Department of Justice’s proposed penalty over a year ago. The DOJ agreed to CREW’s request for an expedited response, but CREW has yet to receive any records. As a result, a federal judge has now allowed CREW to depose Associate Attorney General Robert McCallum along with the director of the Office of Information and Privacy, Daniel Metcalfe, Steve Brody, a member of the tobacco team, and James Kovakas, the attorney in charge of the Civil Division's FOIA processing. Click here to learn more.

In related news, the Justice Department recently cleared McCallum of wrongdoing in its lawsuit against the tobacco industry, removing an obstacle to his nomination to be ambassador to Australia. The internal department review stemmed from complaints about the agency's decision last year to bypass a recommendation by one of its own witnesses and lower the amount it was seeking in remedies from tobacco companies. Click here for additional information.

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States

New Jersey, Utah, and West Virginia join fight for MSA funds
Attorneys General from a number of states are filing lawsuits against Lorillard and RJ Reynolds to ensure that they receive the full amount of the 1998 Master Settlement Agreement (MSA) funding promised to the states for 2006. The companies have withheld more than $700 million from the states, claiming that they are entitled to do so because they have lost market share. While the payments are being disputed in court, the money is being held in a special escrow account. Recently, New Jersey, Utah, and West Virginia joined a number of states that have filed suit against the tobacco companies.

Arkansas:

Supreme Court asking for input on Arkansas “light” cigarette marketing case
The U.S. Supreme Court is seeking input from the U.S. Solicitor General regarding a jurisdictional dispute in order to determine whether they can consider a case brought by two Little Rock, Arkansas women over the marketing of “light” cigarettes. The women are appealing a ruling issued last August by a Court of Appeals in St. Louis. Click here for more information.

California:

R.J. Reynolds settles California sampling lawsuit for $5 million
R.J. Reynolds Tobacco Company must pay $5 million to resolve a suit brought by California over the free distribution of cigarettes at a hot rod race, a jazz festival and other public events, but will not have to admit wrongdoing. Under the settlement, company will pay a civil penalty of $3.1 million, plus $1 million to the Public Health Institute, a nonprofit organization that will use the money to fund smoking prevention and tobacco control advocacy programs, and $900,000 to cover costs incurred by the state attorney general's office. In 2002, the state had been awarded $14.8 million, but the case was sent back to a lower court to reconsider whether the penalty was excessive. Click here for additional information.

Colorado:

Judge denies attempt to delay implementation of Colorado ordinance
A judge has ruled that a coalition of bar, liquor store, and bowling alley owners failed to meet the burden of proof in their suit claiming that the new Colorado Clean Indoor Air Act violates its members' constitutional right to equal protection because the ban does not apply to casinos, cigar bars or tobacco shops. Although the judge agreed that the law should not exempt certain businesses over others, he stated that the coalition could not prove that it would irreparably harm their business. The law will take effect on July 1st as planned, although the coalition is hoping to take their case to Federal court. Click here for more information.

Illinois:

Illinois Supreme Court declines to reconsider $10 billion verdict against Philip Morris in “light” cigarettes case
The Illinois Supreme Court will not reconsider its decision to throw out a $10 billion verdict against the cigarette manufacturer Philip Morris USA. In December, a court threw out a $10 billion judgment against Philip Morris in a class-action suit that had accused the company of deceiving smokers by marketing its ''light'' cigarettes as having lower levels of tar and nicotine. The state high court said the Federal Trade Commission allowed companies to characterize their cigarettes as ''light'' and ''low tar,'' so Philip Morris did not improperly mislead customers about the health impact of its cigarettes. Two justices strongly disagreed with the court order. Click here for more information.

Kansas:

Judge upholds Lawrence, KS smoking ordinance
A judge has denied a request by a Lawrence, KS bar operator to suspend the city’s smoking ordinance while he files a lawsuit alleging that the law is unconstitutionally vague and illegally oversteps state law. The judge previously ruled that the ordinance is constitutional, but the bar owner has asked the court to reconsider. Click here for more information.

Minnesota:

Minnesota health impact fee upheld
The Minnesota Supreme Court overturned a lower court decision and upheld the state’s $0.75 health impact fee on cigarettes and a similar “fee” of 35 percent of the wholesale price imposed on all other tobacco products. The court rejected the cigarette companies' argument that the fee was prohibited by the state tobacco settlement agreement. Click here for more information.

Mississippi:

Court denies continued funding for Partnership for a Healthy Mississippi
A Jackson County Chancery Court has overturned its December 2000 order providing $20 million in funding per year to the Partnership for a Healthy Mississippi. Judge Bradley ruled that only the state legislature should have the power to fund a program with state money. Future funds will go into the Health Care Trust Fund, to be used as the state legislature sees fit. Leaders of the Partnership say that they have enough reserve funds to operate on a scaled-down basis for the next five months. Mississippi was one of the five states that had consistently funded its tobacco prevention program above the minimum level recommended by the CDC, and the Partnership had shown progress in reducing youth smoking rates. The decision will likely be appealed to the Mississippi Supreme Court. Click here for more information on the history of the order and here to view a press release from the Campaign for Tobacco-Free Kids.

Nevada:

Judge rules that Nevada Clean Indoor Air Act will remain on ballot
A Nevada judge has ruled that a petition to ban smoking in almost all indoor areas, including all restaurants and bars serving food, will stay on the November ballot. Advocates are concerned that efforts to kill the bill will be intensified because the proposed ordinance would prohibit smoking in 180,000 hotel and motel rooms throughout the state. Click here for more information.

New Hampshire:

Case to recover MSA funds in New Hampshire to be settled through arbitration
A New Hampshire court has ruled that the state’s case against cigarette companies to recover payments due under the Master Settlement Agreement will be resolved by arbitration instead of by the court. Click here for additional information.

New Jersey:

New Jersey widow wins tax victory
A woman whose husband died of smoking-related diseases in 2004 was surprised to receive a bill for $875.63 in back taxes on two years’ worth of Internet cigarette purchases made by her late husband. New Jersey has agreed to forgive her bill. Click here for more information.

Ohio:

Signatures on Ohio petition for smoking ordinance invalidated
A judge has ruled that over 43,000 signatures gathered to support putting a statewide smoking ordinance on the ballot in Ohio are invalid. The issue arose because the Ohio Licensed Beverage Association filed a complaint that paid employees of the SmokeFree Ohio Workplace Commission incorrectly listed the American Cancer Society as their employer, rather than their independent contractor. A SmokeFree spokesperson indicated that the Secretary of State's legal council had advised the nonprofit group to list the cancer society as the employer of those hired to collect signatures. Additional signatures are being collected in order to keep the initiative on the November ballot. Click here for more information.

Lower-court ruling in Philip Morris suit overturned in Ohio
An Ohio Supreme Court decision overturns lower-court decisions granting class action status in a case filed by residents against Philip Morris for deceptive marketing practices. The court's majority said a judge can certify a case for class action under Ohio's Consumer Sales Practices Act only if the violation cited is "substantially similar" to an act or practice previously declared deceptive by the attorney general or a court. Click here to learn more.

Oklahoma:

Oklahoma AG sues foreign tobacco manufacturers over settlement
Oklahoma Attorney General Drew Edmondson is suing three foreign tobacco companies for violations of part of the state's 1998 settlement with tobacco companies. The lawsuits accuse Prime Mover of the Phillipines and Tabacalera Honnington and Tabacalera Nazionale both of Paraguay of not paying into an escrow account as required by law. Click here for more information.

Oregon:

Philip Morris appeals $80 million Oregon verdict to Supreme Court
Philip Morris has successfully petitioned the U.S. Supreme Court to hear their claim that a verdict requiring them to pay $79.5 million in punitive damages to an individual smoker is excessive. The verdict was handed down by the Oregon Supreme Court in 2003. The Supreme Court will rule on whether juries can award punitive damages far higher than compensatory damages for "highly reprehensible" conduct. The court will also rule on whether a jury may punish a company for its impact on parties not involved in the lawsuit. Click here for more information on the case.

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