Philip Morris Files to Stop Award (Illinois to get what it deserves.)

Reuters ^ | Fri April 18, 2003 11:26 AM ET

[samuel_adams_us]

CHICAGO (Reuters) - Philip Morris USA, in an effort to whittle down a $10.1 billion damages award, asked a judge in Chicago on Friday to permanently block $3 billion in punitive damages that was assigned to the state of Illinois last month by another judge. Thomas Frederick, an attorney representing the cigarette maker, said he filed a complaint in Cook County Circuit Court seeking a permanent injunction against Illinois collecting that money. The company argued the state had relinquished any future claims against Philip Morris when it joined 45 other states in a settlement with U.S. tobacco companies in 1998.

Under the settlement, the states expect to receive $206 billion over 25 years from the tobacco companies to compensate them for the cost of caring for sick smokers.

Cook County Circuit Court Judge James Henry last week issued a 10-day temporary restraining order that blocked Illinois from obtaining the punitive damages award, saying the state had released any claims against tobacco companies in the 1998 settlement agreement.

Philip Morris wanted the punitive damages award removed from a $10.1 billion, March 21 ruling by a Madison County Circuit Court judge as a way to lower the $12 billion appeal bond set by that judge.

Henry on Friday ended the temporary restraining order, which expired and had become moot after Madison County Judge Nicholas Byron on Monday sliced the $12 billion appeal bond in half. That move allowed the company to proceed with its appeal of Byron's March 21 ruling in a class-action smokers' lawsuit, which resulted in $7.1 billion in compensatory damages for smokers and the $3 billion in punitive damages for Illinois.

Byron had found the company deceived customers into thinking "light" cigarettes were safer than regular cigarettes.

Philip Morris argued the $12 billion appeal bond, which it needed to protect its assets from being depleted by plaintiffs during the appeals process, would bankrupt the company and impair its ability to make a $2.6 billion settlement payment due states last Tuesday.

Byron agreed on Monday to a lower bond requirement that allowed the company to put up a $6 billion note issued by its parent, Altria Group Inc. MO.N , plus interest payments and $800 million in other payments to be made this year and in 2004. Philip Morris subsequently made the Tuesday payment due states.

[samuel_adams_us]

It's only a matter of time before this passes: "Congressional Passage of Reckless Lawsuit Preemption Legislation" and the tabacco companies use this in their own favor and tell all of the states in this country to go pound sand. At that time the corrupt state governments that were created during the Klinton era will come crashing down. I await with great anticipation! It's about time we took out the trash. If the citizens of this country can't take responsibility for their own actions then we have truly lost our freedom!

[samuel_adams_us]

It's hard to keep those 100k people doing nothing on the payroll without any money!

[justshutupandtakeit]

What a scam. Madison County is notorious for this type of class action suit.

Can anyone come up with a more idiotic law than this one? It has to be unconstitutional since it prevents due process by requiring these huge bonds to appeal.

[BamaGirl]

If the citizens of this country can't take responsibility for their own actions then we have truly lost our freedom!

Hear, hear!

[vetvetdoug]

Mississippi has its trial lawyers under scrutiny that were involved in the tobacco settlement here. It seems that Scruggs paid off the mortgages of the State Supreme Court Judges that ruled on the tobacco settlement in this state. This will have series ramifications if the settlement was a payoff here. The whole tobacco thing stunk from the onset.

[ken in texas]

It seems that Scruggs paid off the mortgages of the State Supreme Court Judges that ruled on the tobacco settlement in this state.

Now that's very interesting! I haven't heard about that before.

[vetvetdoug]

I heard this on the Mississippi Talk Radio this morning. Scruggs is Trent Lott's brother in law (which may be the smoking gun for his weaselness during the Clinton Impeachment proceedings).