Federal Judge Rejects European Lawsuit Against Philip Morris, Other Tobacco Cos.; Philip Morris Calls For Dialogue On Additional Steps To Stem Contraband
NEW YORK, Jul 17, 2001 (BUSINESS WIRE) -- A federal district court judge in Brooklyn has dismissed the lawsuit filed by the European Community (EC) against Philip Morris and other tobacco companies over allegations involving smuggling of contraband cigarettes because, under the applicable law, the EC has not been injured. The court also denied a motion by the EC to add a number of its member states to the lawsuit.
U.S. District Judge Nicholas G. Garaufis' ruling is consistent with the relief sought by Philip Morris in an international court in Brussels, where the company filed suit last year challenging the European Community's right to sue over this issue.
"The issues of contraband cigarette smuggling and counterfeit cigarettes are as great a concern to Philip Morris as they are to governments. However, this is a problem that should be addressed through cooperation rather than litigation. Recent experience has shown that there are many measures available to governments, with the cooperation of the private sector, to address these issues.
"We would welcome the opportunity to sit down and discuss with the EC and any governments the ways to resolve these matters without litigation, including the concrete steps that we have taken and can take in the future to support government efforts to reduce the smuggling of contraband cigarettes," said William S. Ohlemeyer, Philip Morris vice president and associate general counsel.
In ruling on the motion to dismiss the suit, Judge Garaufis was required by the federal rules to assume as fact, without evidence, the plaintiff's allegations. Nothing in the Court's decision addresses the truthfulness of the smuggling allegations made against the tobacco companies. At this stage in the proceedings, no proof of any kind has been offered to support these allegations, which Philip Morris denies.
"While we are pleased that Judge Garaufis agreed with us in dismissing the complaint, we disagree with his general analysis of certain legal doctrines that should govern these types of cases.
"Contrary to the Court's reasoning, we believe long-settled legal principles preclude suits of this type, a belief that was validated just last year by another New York federal district judge in connection with a contraband suit brought by the government of Canada against R.J. Reynolds. The issue of whether such suits are barred by these legal principles currently is pending before the Second Circuit U.S. Court of Appeals. A decision, which is expected shortly, would govern any suits filed in a district court in New York.
"Should the EC or any of its member states choose to pursue litigation, despite the dismissal of this suit, we intend to offer a vigorous defense," said Ohlemeyer. |
