Ieyoub v. Philip Morris USA
Ieyoub v. Philip Morris USA, Inc., 982 So.2d 296, Louisiana Court of Appeals, Third Circuit (2008).
- United States
- Apr 30, 2008
- Louisiana Court of Appeals, Third Circuit
Ieyoub v. Philip Morris USA, Inc., 982 So.2d 296, Louisiana Court of Appeals, Third Circuit (2008).
In 1998, the tobacco companies and the state of Louisiana (among other states) entered into the Master Settlement Agreement (MSA) in an action brought by states against the tobacco companies to recover costs for health care services provided to individuals suffering from tobacco-related illnesses. Under the MSA, the tobacco companies were to make annual payments to the state in exchange for the state waiving future healthcare cost recovery claims. Both sides agreed that the United States Federal Arbitration Act (Arbitration Act) would control should a dispute arise. The tobacco companies filed a motion to compel arbitration after an independent auditor did not apply an adjustment in the calculation of the annual payment to the state. The Court reversed the trial court's dismissal of the motion and compelled arbitration, assigning costs to the state, based on the broad scope of the arbitration provision and application of the Arbitration Act.