Kentucky Escrow Collections Legal

Source from:  Wednesday, November 1, 2006 tobaccoreporter.com 11/03/2006

An appeals court has ruled that Kentucky can continue to collect escrow payments from cigarette companies that did not participate in the 1998 master settlement agreement, according to an Associated Press report. This is said to be the first ruling by a federal appeals court addressing the issue of whether states can force companies to make the payments. The 6th Circuit Court of Appeals in Cincinnati turned down a challenge from three companies that claimed that Kentucky law effectively barred their businesses from selling tobacco in the state. Four other appeal courts are currently considering similar challenges. Enditem