CNMI files tobacco lawsuit

A lawsuit, which is required to be filed by the CNMI government in order to get its $15.8 million settlement payment from tobacco manufacturers, was filed in court last week and subsequently dismissed by the court.

Presiding Judge Edward Manibusan dismissed the complaint with prejudice and signed the consent decree and final judgment entered between the CNMI and Brown & Williamson Tobacco Corp., Liggett Group Inc., Lorillard Tobacco Co., Philip Morris Inc., R.J. Reynolds Tobacco Co., United States Tobacco Manufacturing Co. Inc. and United States Tobacco Sales and Marketing Co. Inc.

Assistant Attorney General Diane McDevitt filed the complaint which was required by the Master Settlement Agreement signed with the major US tobacco producers and the Smokeless Tobacco Master Settlement Agreement signed with major US smokeless tobacco producers last Nov. 23.

According to terms of both agreement, states that had not sued the tobacco companies previously were required to file the lawsuit in order to have the consent decrees entered and the agreement approved by the respective state courts.

According to Devitt, while the states have agreed to dismiss all possible claims against the tobacco and smokeless tobacco company, the agreements and proposed consent decrees require that the court maintain continuing jurisdiction.

She added that in order to reach state-specific finality (an event that necessary prerequisite for payments being disbursed to the States) under the agreements, it will be necessary for the court to enter a dismissal order and for any appeals to be exhausted in a timely manner.

“It is believed that the order of dismissal is a final appealable order that will help the CNMI reach state-specific finality,” McDevitt said.

The CNMI joined several states and US possessions, territories and Commonwealth in signing the agreements which entitles the CNMI to receive $202,503.22 this year.

Payments will resume in the year 2000 until 2024, ranging from $500,000 to $700,000.

The parties desire to resolve the action in a manner which appropriately addresses the Commonwealth’s public health concerns while conserving the parties resources as well as those of the court which would otherwise be expended in litigating a matter of this magnitude, the consent decree said.

Under the settlement, the tobacco industry must also pay $25 million every year for the next 10 years to finance a charitable foundation supporting the study of programs to reduce teen smoking and to refrain from advertising their products on billboards and mass transportation such as taxis and buses.

The industry is also ordered to give out $1.45 billion national public education fund for tobacco control.