Tobacco Companies Say Montana Could be Losing Money

Source from:  KRTV 10/25/2010

Tobacco companies say Montana could lose big money, as the Treasure State is standing in the way when it comes to arbitration over a nationwide lawsuit they filed. Currently Montana is the only state that refuses to join in talks with tobacco companies regarding it's enforcement of smaller manufacturers, which large tobacco companies say have an unfair advantage. Attorneys for RJ Reynolds and Philllip Morris were in Helena District Court on Friday trying to convince a Montana judge to put a hold on the lawsuit. Tobacco companies filed suits against all states claiming there was an unfair advantage by smaller cigarette manufacturers that weren't involved in the original suit. There is approximately $850-million dollars in an escrow account waiting to be divided among all of the states involved. Attorneys for tobacco companies say that Montana could lose out on money set aside. Steve Patton, an attorney for RJ Reynolds, said, "If you are found not to diligently enforce you could lose all of your MSA payments for that year. But the more other states that are found not to have diligently enforced, the lesser the impact is on you." But attorneys for Montana say there's no need to stop the process, because the Montana Supreme Court already ruled on the matter. John Kutzman, State's attorney, noted, "The proposal by the manufacturers to stay the whole thing while they go off and arbitrate with everybody else is simply a thinly-disguised attempt to deprive us of the benefit of the Montana Supreme Court's ruling. If you were to give them what they are asking for you would in effect be defying the Montana Supreme Court and for that reason we would urge you to deny the motion." Montana is one of 46 states that joined in a lawsuit against tobacco companies in 1999 and has been receiving settlement money. It's now up to Judge Sherlock to decide the case. Enditem