Cigarette Litigation Essay Example

tactfully pursued an innovative litigation strategy that ultimately forced the industry to engage in negotiations. For four decades, tobacco companies had managed to win every lawsuit against them without having to pay any compensation. However, in 1997, everything changed. The industry agreed to a groundbreaking settlement of paying $368 billion for health-related damages and removing billboard advertisements.

Mississippi's Attorney General, Mike Moore, and attorney Dick Scruggs partnered to sue tobacco companies on behalf of the state's taxpayers. Their goal was to recover healthcare costs for smokers. They traveled extensively using a private jet to share their battle strategy with other state attorneys general. Eventually, they gained support from forty states in their fight against the tobacco industry.

One effective tactic involved acquiring confidential internal documents from tobacco companies that others refused to handle. They also played a crucial role in protecting whistleblowers Jeffrey Wigand and Merrell Williams, who provided vital evidence against these companies. Additionally, Moore and Scruggs proposed a deal to Liggett Myers CEO Bennett LeBow, seeking his cooperation with state attorneys general in exchange for financial stability.

Furthermore, they established a back channel through political advisor Dick Morris to President Clinton and Senate Majority Leader Trent Lott. Their success extended beyond reaching a national settlement with the industry; it triggered a significant criminal investigation that could potentially result in imprisonment for those who misled the American public.Opposition from the public health community has emerged against settlement talks due to an ongoing criminal investigation. The tobacco industry faced 17 pending state Medicaid reimbursement lawsuits as of October 22nd, 1996. Cities and counties also independently filed parallel suits, such as San Francisco, San Jose, and Erie County in

New York. Two plaintiffs achieved success at the trial level out of these individual cases. Rose Cipollone initially won her case in New Jersey but it was later overturned by the US Supreme Court. Grady Carter in Florida obtained a favorable judgment at the trial court level which is currently being appealed. However, recent plaintiffs involved in suits like Rogers in Indiana, Hutchin in Louisiana, and Allgood in Texas have experienced losses. In addition to these ongoing cases, there are multiple class suits still awaiting resolution on a statewide level after the Castano suit's nationwide class certification was denied by the Fifth Circuit court. Currently, 17 states are actively pursuing lawsuits against the cigarette industry seeking reimbursement for medical expenses primarily through state courts.These states, including Arizona, Connecticut, Florida, Illinois, Kansas, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Mississippi Oklahoma New Jersey Texas Utah Washington West Virginia have taken action for Medicaid reimbursement suits. Additionally, cities and counties such as San Jose and San Francisco in California and Los Angeles County along with ten others have also filed lawsuits. The City of New York filed its own lawsuit on October 17th, 1996. In September 1996 in Ohio Cuyahoga County Commissioner Timothy Hagan and Brook Park Mayor Thomas Coyne filed a suit on behalf of taxpayers seeking Medicaid reimbursement. Around the same time in Florida a lawyer who had previously won a verdict for Grady Carter initiated a lawsuit against cigarette manufacturers on behalf of 390 clients. Similarly in Minnesota on September 4th , 1996 a group of smokers brought a class-action suit against cigarette makers representing smokers. Renowned lawyer Stanley Chesley also filed a class-action suit against

cigarette manufacturers in Ohio.The lawyers who represented the first states to settle with the tobacco industry over healthcare costs (Florida ,Mississippi,and Texas) were awarded $8.2 billion in fees – the largest legal payout ever recorded in the nation's history.These fees will be divided among multiple lawyers representing these states and paid by cigarette makers.Payments of up to $500 million per year will be made until all lawyer claims are resolved, but this will not affect the amounts received by states from their recent $206 billion settlement with tobacco companies. The settlement, reached last month by 46 states and five United States territories, is expected to be passed on to smokers in the form of increased costs. Philip Morris and other cigarette makers have agreed to pay an average of $14.7 billion annually over 25 years as part of this settlement, despite finding it difficult to accept and potentially facing increased Federal regulation. Previously disputing scientific evidence linking smoking to diseases like lung cancer, Philip Morris now acknowledges these findings due to pressure from lawsuits, regulators, and Congress. As part of a $100 million corporate campaign aimed at improving their public image, they have launched a new website stating that there is a strong consensus among medical and scientific experts regarding smoking causing diseases such as lung cancer, emphysema, and heart disease.Philip Morris and other tobacco producers acknowledge that smoking is addictive, according to the current definition of addiction. Their objective now is to move away from health-related concerns and the substantial payments resulting from state lawsuits. However, in order for plaintiffs to maintain their position on this matter, they still need to demonstrate that smoking

caused their illness. An amendment has been made to the tobacco bill, as mentioned in the article "Senate Approves Limiting Fees Lawyers Get in Tobacco Cases," which impacts the fees attorneys can receive. Prior to 1995, lawyers were allowed to charge high hourly rates up to $4,000. Nevertheless, for cases joined after June 17, 1998, their fee gradually decreases with a maximum hourly rate of $500. Nonetheless, some lawyers have already earned significant sums of money from settled tobacco suits. In numerous states and individual cases, private lawyers were hired based on contingency agreements and received a percentage of the damages or settlement as payment. These attorney fees turned out unexpectedly large; for example, lawyers obtained a 15% share in Texas' $15.3 billion tobacco settlement. Lester Brickman, a professor at Cardozo Law School who provided analysis on the work done by lawyers and claimed percentages was one expert involved in this process. It was determined that their fees would amount to $92,000 per hour.The amendment implemented in 1996 changed the eligibility for lawyers involved in tobacco litigation. Lawyers who started before 1995 could potentially earn $4,000 per hour, while those who joined between 1995 and April 1997 had the potential to earn $2,000 per hour. From April 1997 until June 1998, lawyers could charge $1,000 per hour. However, those who joined after June 1998 were limited to a maximum of $500 per hour. Prominent lawyers like Richard Scruggs and Ron Motley qualified for the higher fee of $4,000 an hour due to their involvement in the early stages of litigation. On the other hand, individuals like Hugh Rodham Jr., Hillary Rodham Clinton's brother, received a

lower hourly rate because they got involved at a later stage. The hourly rates varied significantly depending on factors such as late lawsuits filed by certain states in either 1996 or 1997. Mr. Scruggs represented multiple states in the litigation. In an effort to provide healthcare coverage for one million uninsured New Yorkers, both major parties' legislative leaders and New York's governor agreed to raise the state's cigarette tax by 55 cents per pack.
They also chose to renew a program that gives hospitals approximately $1.3 billion annually for training new doctors and treating uninsured individuals who visit emergency rooms but cannot afford to pay their bills. It is estimated that expanding coverage for uninsured individuals will cost the state about $750 million over the next three and a half years. The funding for this initiative would come from an increased cigarette tax, a portion of the $450 million per year received from the national tobacco lawsuit settlement, and roughly $300 million in new federal healthcare funds. If this agreement is approved, New York's tobacco tax would be raised to $1.11 per pack, surpassing all other states and significantly impacting the tobacco industry as it has not been affected since 1993. The industry's influence on state politics has declined recently due to revelations of excessive spending on gifts for lawmakers and lobbying expenses. Some legislators hope that implementing a higher tobacco tax will help refute allegations of being too closely aligned with the industry's interests. The state expects this additional tax to generate approximately $400 million each year. It should be noted that the last increase in cigarette tax occurred in 1993 when it rose from

39 cents per pack to 56 cents per pack; however, since then, 13 other states have adopted higher rates. For instance, New Jersey currently imposes an 80-cent-per-pack cigarette tax, Connecticut sets it at 50 cents per pack, and Pennsylvania charges 31 cents per pack.
Anti-tobacco groups have praised the decision to implement a 55-cent hike in cigarette taxes in New York. They believe that this increase will discourage smoking, especially among teenagers, and motivate others to quit altogether. This move could position New York as a leading force in addressing the nationwide issue of tobacco consumption. The information in this text is sourced from various websites including Modern Trial Page, Lawyers in Early Tobacco Suits to Get $8 Billion, Companies' Cost Would Be Great, But So Is Their Outlook for Profit, and Philip Morris Admits Evidence Shows Smoking Causes Cancer.