[Intl-tobacco] Florida judge dismisses Venez. suit against Philip Morris

[Robert Weissman]

Tuesday November 20, 5:28 pm Eastern Time

Press Release

SOURCE: Philip Morris U.S.A.

Florida State Court Judge Dismisses Foreign Cases

Decision Follows Victories in Federal Courts

MIAMI--(BUSINESS WIRE)--Nov. 20, 2001--A Florida state judge today
dismissed two health-care cost-recovery lawsuits brought by the Republic
of Venezuela and the Brazilian state of
Espirito Santo against Philip Morris U.S.A. and the other major U.S.
cigarette manufacturers. The ruling continues a three-year unbroken
streak of decisions rejecting similar cases in federal
appellate courts, and an earlier Florida state trial court rejection of
a similar case.

``This is another important reminder to American plaintiffs' lawyers
that a state court won't ignore the overwhelming number of decisions by
federal courts rejecting these lawsuits,'' said William S.
Ohlemeyer, Philip Morris Cos. vice president and associate general
counsel. ``The plaintiffs' lawyers know that federal courts in this
country will not tolerate these lawsuits and this decision
suggests their reception in state courts should be no different.''

Over the past three years, Venezuela, Russia, Ecuador and several
Brazilian states - including Espirito Santo - filed suit in Miami
seeking reimbursement for smoking-related health-care costs.

During this same period, eight U.S. federal appellate courts have issued
12 unanimous decisions throwing out cases brought by third-party payors
of medical expenses. These appellate courts, as
well as more than 30 federal and state trial courts, have rejected cases
of this type on the basis that injuries claimed by payors of health
claims - whether a Blue Cross plan, labor union health fund,
HMO, employer or public hospital - are ``too remote'' to support a claim
for damages.

The courts have also determined that because countries cannot claim they
were directly injured by the companies, their claims are likewise ``too
remote.'' Earlier this year, a federal appeals court in
Washington, D.C., applied the same legal reasoning to uphold the
dismissal of cases brought by Guatemala, Nicaragua, and the Ukraine The
U.S. Supreme Court allowed that decision to stand. In
addition, a case filed by Ecuador was withdrawn after another state
court judge in Miami told plaintiffs' lawyers he would dismiss the case.