[Intl-tobacco] US DoJ contacts Australian lawyers over BAT doc shredding

[Robert Weissman]

http://www.theage.com.au/articles/2002/04/18/1019020683796.html

US seeks facts on smoke conspiracy
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By Christopher Kremmer
April 19 2002

The Age (Australia)

The United States Government is seeking access to Australian evidence of
claims that a tobacco company has a worldwide program to destroy documents
damaging to the industry.

The approach signals the potentially catastrophic impact on the industry of
last week's landmark legal ruling in favour of a Victorian cancer victim who
became the first Australian to successfully sue an international tobacco
company.

The US Justice Department wrote to the law firm representing Rolah McCabe,
51, after the Victorian Supreme Court ordered the British American Tobacco
Company Australia Limited to pay her $710,000 damages.

The department has asked the firm, Slater and Gordon, for the evidence on
which it based its case that documents with the potential to assist smokers
suing tobacco companies had been destroyed.

Judge Geoffrey Eames found the company's actions had given Mrs McCabe no
chance of presenting her case that the company knew cigarettes were
addictive and deliberately lured children into smoking.

The company denies this, saying no laws were broken as it was not aware when
the documents were destroyed that it might face such litigation.
The company will seek leave to appeal against the decision on May 3.

Of particular interest to the US Government is evidence that lawyers for
BAT's overseas parent company may have indulged in similar practices.

The court heard that in 1992 British American Tobacco's board implemented
its "document retention policy" - to destroy potentially incriminating
evidence - worldwide.
The court was told that BAT put David Schechter, an American lawyer with
extensive experience in defending tobacco companies against suits by
smokers, in charge of the program. That year, Mr Schechter chaired a
conference of all BAT companies in Kuala Lumpur at which he explained the
policy.

The court heard that Mike Harrison, a representative of Wills Australia,
part of BAT, returned from the meeting and helped to implement the new
document destruction policy in Australia.

The New York Times reported on Wednesday that the Australian ruling was the
first by a court based on evidence of document destruction by a major
tobacco company.
Anti-smoking campaigners have predicted that, if upheld, the Victorian case
could trigger a "litigation Armageddon" for the tobacco industry.
Slater and Gordon staff said they had been asked to prepare a response to
the US Government's request, but the impending appeal against Judge Eames'
decision was a higher priority.