Lawsuits
National
Tobacco Control Legal Consortium – Legal Update
September 2006
Access the September 2006 Legal Update from the Tobacco Control
Legal Consortium (TCLC). The TCLC weighs in on the DOJ ruling
in United States v. Philip Morris, as well as other legal
issues and resources. Click here
to go to the update
Tobacco Control Legal Consortium - Legal Update October
2006
The October 2006 Legal Update from the Tobacco Control Legal
Consortium can be accessed by clicking here.
Class-action status OK'd in tobacco case
A federal judge will allow smokers of light-cigarettes to
file a class action lawsuit against Big Tobacco that may reach
as much as $200 billion. The lawsuit – known as the
Schwab case - represents tens of millions of people who believe
that they were misled into thinking that light cigarettes
were safer. Both R.J. Reynolds and Philip Morris USA are appealing
the judge’s decision. To read more, click here.
Tobacco companies challenge class status of 'lights'
case
Philip Morris USA, along with several other cigarette makers,
filed a motion challenging the recent class certification
decision of the Schwab case, alleging that the tobacco companies
attempted to trick the public into believing that “light”
cigarettes were less harmful than other types of cigarettes.
However, that motion was rejected by U.S. District Judge Jack
B. Weinstein. As it stands, the lawsuit will represent millions
of smokers and former smokers and seek hundreds of billions
of dollars. Click here
to read more.
Judge denies 'light' cigarettes request
Federal Judge Gladys Kessler has denied the tobacco companies’
request to allow continued marketing of “light”
and “low tar” cigarettes until an appeal is completed
in their racketeering case. The request was filed by the tobacco
companies after Kessler’s August ruling that ordered
tobacco companies to stop marketing the cigarettes and make
public statements about nicotine addiction and the health
effects of smoking. Click here
to read more.
Judge dismisses lawsuit against tobacco companies
A federal district court dismissed a lawsuit against the R.J.
Reynolds Tobacco Company that was brought forth by the United
Seniors Association. United Seniors was seeking to recover
medical expense reimbursements made by Medicare for conditions
brought on by cigarette smoking. To read more, click here.
Court rejects tobacco case appeal
The Supreme Court rejected an appeal by 30 state Attorney
Generals surrounding the issue of a tobacco company’s
ability to challenge state laws. The lawsuit, stemming from
the Master Settlement Agreement, was brought about by three
small tobacco companies who wished to challenge state escrow
laws that required them to join the settlement or put funds
into escrow accounts based on cigarette sales. The lawsuit
was originally dismissed by a federal district judge and then
reversed by a federal appeals court. Since the Supreme Court
has declined to review the appeals court, the lawsuit will
proceed. Click here
to read the press release.
Supreme Court to hear arguments October 31 in Philip
Morris case
The U.S. Supreme Court will hear oral arguments from Phillip
Morris’ challenge to punitive damage awards to the family
of a deceased smoker. The case originated in an Oregon state
court, was affirmed by Oregon’s highest court, and is
scheduled to begin in the U.S. Supreme Court on October 31st.
The court has received a dozen amicus curiae briefs from trade
associations and advocacy groups, supporting Phillip Morris,
arguing that if the Supreme Court allows the award to stand,
businesses will suffer harm from excessive and unjustified
punitive damages awards. The press release can be found here.
Philip Morris wins temporary delay in class action
A federal appeals court has granted a temporary stay while
it hears arguments about whether the Schwab case can proceed
as a class-action lawsuit. The Schwab lawsuit seeks over $200
billion in damages on behalf of light cigarette smokers across
the U.S. The stay threatens to delay a January 22 scheduled
trial start date. To read more, click here.
Attorneys General and R.J. Reynolds reach historic
settlement to end the sale of flavored cigarettes
R.J. Reynolds Tobacco Company (RJR) and the Attorneys General
of 38 states have entered into a settlement that ends the
sale of candy, fruit and alcohol flavored cigarettes manufactured
and sold by the company. For more information click here.
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States
Colorado:
Pueblo DA joins suit to snuff smoking ban
The Pueblo Country District Attorney, Bill Thiebaut, has taken
a stance with the plaintiffs in a federal lawsuit that seeks
to overturn the state smoking ban, the Colorado Clean Indoor
Air Act. Thiebaut has based his filing on two arguments, including
the law’s exemption of casinos. The lawsuit was originally
brought on by a coalition of bar and tavern owners and it
is unclear when a ruling can be expected. Click here
for more information.
Colorado smoking ban upheld
Colorado’s statewide smoking ban was upheld by a federal
judge, rejecting the argument that it violated the constitutional
rights of bar owners. The lawsuit was filed on behalf of coalition
member Shari Warren, owner of the Spirit Keeper Tavern in
Black Forest, who claimed that the ban was harming her business.
The coalition’s main argument was that the law violated
the Equal Protection Clause of the 14th Amendment, permitting
smoking in some locations. The judge ultimately decided that
the exemptions were not irrational or unfair. To read more,
click here.
Mississippi:
Judge rejects separate account for $20 M in anti-tobacco
money
Chancellor Jaye Bradley rejected an anti-tobacco group's request
to create a separate account for $20 million in anti-tobacco
funds until the state Supreme Court can decide the fate of
the money. The decision means the money will go into the state
Health Care Trust Fund, where legislators could spend it on
other programs such as Medicaid. Some health advocates fear
that moving the money could hamper anti-smoking programs already
sponsored by The Partnership for a Healthy Mississippi --
a private, nonprofit group that has been funded by some of
the state's annual payments from settlement of a massive lawsuit
against tobacco companies. Click here
and here
to read more.
Texas:
Smoking ban battle reignites
A federal judge found that some provisions in the enforcement
section of Austin’s smoking ban to be “unconstitutionally
vague.” The decision did not overturn the smoking ban,
which took effect in May 2005, but did specify what steps
a business owner must take to be in compliance with the law.
The lawsuit was filed by a group of bar owners last year over
concerns that they would be held responsible for people not
abiding by the law. The decision has shifted the responsibility
of enforcement to the individuals smoking in public places
as opposed to the owners of the establishments, after the
owners have taken the “necessary steps.” Attorneys
with the city of Austin announced that they will appeal the
ruling. For now, more people are taking their chances and
lighting up indoors. Click here to read
more.
Washington:
Tobacco company fights cigarette curbs
R.J. Reynolds Tobacco has filed a federal lawsuit seeking
to invalidate a Seattle city ordinance that bans the distribution
of free sample cigarettes. R.J. Reynolds claims that the ban
violates its freedom of speech provision in the First Amendment.
A similar suit was ruled upon last year by a U.S. District
judge when he invalidated a state law banning promotional
distribution of cigarettes in Washington. To read more, click
here.
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International
Canada:
Tobacco chief warns of damage from Canada lawsuits
Benjamin Kemball, president and chief executive of Imperial
Tobacco Canada, Canada’s largest tobacco company, said
that the company would prevail against current government
lawsuits or go bankrupt. The company is currently being sued
by the province of British Columbia for billions of dollars
in damages associated with increased health care costs of
smoking-related illness. Kemball stated that the amount of
money that the province is requesting is more than the total
profitability of the company, and if the province prevails,
the result will be to bankrupt the industry. For the full
news report, click here.
Altria, Tobacco companies can face trial in Canada,
court rules
Altria Group Inc.'s Philip Morris International and other
tobacco companies with operations outside Canada can be sued
by British Columbia as part of its effort to recover money
spent treating smoking-related illnesses. British Columbia's
Court of Appeals ruled that Japan Tobacco Inc.'s R.J. Reynolds
International, British American Tobacco Plc's British American
Tobacco (Investments) Ltd., and B.A.T. Industries Plc cannot
avoid a trial in the Canadian province by arguing they didn't
have a presence there. For more information, click here.
Italy:
EU refers Italy to Court of Justice
The European Union has referred Italy to the European Court
of Justice for its reluctance to enforce a strict ban on tobacco
advertising for sporting events, specifically Formula One
racing. Cigarette sponsorship of Formula One racing is on
the decline, yet Marlboro logos continue to be present. The
European Union is worried that the glamorization of cigarettes
though advertisements at sporting events encourages young
people to smoke. Additionally, the European Union has sent
warnings to the Czech Republic, Spain, and Hungary. To read
more about this story, click here.
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