[Intl-tobacco] Venezuela's Suit Over Tobacco Damages Sent to Miami Court (fwd)

[Robert Weissman]

Venezuela's Suit Over Tobacco Damages Sent to Miami Court

by William McQuillen
Source: Bloomberg News, Friday, 6/16/00

Miami, June 16 (Bloomberg) -- Philip Morris Cos. and other
U.S. tobacco companies will face the Venezuelan government's
lawsuit over smoking related health care costs in a Miami state
courthouse that has been friendly to plaintiffs.

A federal judge in Washington decided the Miami-Dade Circuit
Court where the suit was initially filed in January 1999 is the
proper venue after all. The case had been moved to federal court
in Miami, then to the federal court in Washington, before it was
returned to the state court.

``Nothing about the allegations in these lawsuits implicates
interests that are `uniquely federal,''' U.S. District Judge Paul
Friedman wrote.

Friedman also wrote the court should conduct further
discovery before deciding whether to remand a similar suit filed
by Bolivia, to the state court.

The suit, aimed at recovering public health-care costs,
sought billions of dollars in damages. Venezuela claimed it
suffered economically from a decreased labor force, a lower gross
national product and lost taxes.

Currently, the Miami court to which the case has been
returned is the scene of a class-action lawsuit against cigarette
makers over smoking-related damages -- the first of its kind to go
to trial.

A jury already has found the companies to be responsible for
the death and disease of as many as 500,000 Florida smokers and
has awarded $12.7 million to three named plaintiffs. The jurors
will soon deliberate on punitive damages, which some analysts have
estimated could exceed $100 billion.

Steven Marks, an attorney for Venezuela, said he was excited
about a possible trial date ``since Big Tobacco has repeatedly
refused any attempt at a reasonable resolution.''

Representatives from Philip Morris couldn't immediately be
reached for comment.

Philip Morris shares fell 2 1/16 to 25 1/2 in trading today;
R.J. Reynolds fell 1 to 30 7/16; Loews fell 2 1/2 to 62; British
American Tobacco's American depositary receipts fell 5/8 to 12;
and Vector rose 1/16 to 17 3/4