TOBACCO CONTROL LAWS

Panama, et al. v. The American Tobacco Company, et al.

Two foreign governments claimed that manufacturers of tobacco products consumed within the foreign nations should be held liable for the harmful health effects of smoking, arguing that the companies must reimburse the governments for medical care funded for their citizens due to illnesses resulting from tobacco consumption. The court dismissed the plaintiffs' arguments for failure to satisfy proximate cause, finding the claim to be too remote to be actionable. The Court also rejected the plaintiffs' argument that their quasi-sovereign interest to recover on behalf of their citizens afforded them parens patriae standing, under which the plaintiffs had authority to act on behalf of those affected by tobacco consumption.  Consequently, the Court ordered the dismissal of all claims against all defendants.

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Panama, et al. v. The American Tobacco Company, et al., 2006 WL 1933740, Superior Court of the State of Delaware (2006).

  • United States
  • Jul 13, 2006
  • Superior Court of the State of Delaware in and for New Castle County

Parties

Plaintiff

  • Republic of Panama
  • State of Sao Paulo, Brazil

Defendant

  • American Tobacco Company
  • BATUS Holdings, Inc.
  • BATUS Retail Services, Inc.
  • Brown & Williamson Tobacco Corp.
  • Fortune Brands, Inc.
  • Liggett & Myers, Inc.
  • Liggett Group, Inc.
  • Philip Morris U.S.A., Inc.
  • R.J. Reynolds Tobacco Company
  • R.J. Reynolds Tobacco Holdings, Inc.
  • U.S. Smokeless Tobacco Co.
  • U.S.T. Inc.

Legislation Cited

Delaware Law

Related Documents

None

Type of Litigation

Health Care Cost Recovery
Governments or insurance agencies may seek reimbursement from the tobacco companies for health care costs related to tobacco. The most famous example is the case brought by individual states in the U.S.A. that resulted in the Master Settlement Agreement.

Tobacco Control Topics

Liability
Measures dealing with criminal and civil liability, including compensation. (See FCTC Art. 19)

Substantive Issues

Procedural Defect
The court might consider procedural matters without touching the merits of the case. These might include: improper joinder, when third parties, such as Health NGOs or government officials, seek to become parties to the suit; lack of standing, where a plaintiff fails to meet the minimum requirements to bring suit; lack of personal jurisdiction, where the court does not have jurisdiction to rule over the defendant; or lack of subject matter jurisdiction, where the court does not have jurisdiction over the issue at suit.

Type of Tobacco Product

None

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