Hawaii’s $3 billion
tobacco suit survives
first challenge intact

By Susan Kreifels
Star-Bulletin

A Circuit Court judge has given the state a go-ahead on a lawsuit against tobacco companies that could net $3 billion for the state treasury for reimbursement of medical costs related to smoking.

This is the first time that every count of such a lawsuit in any state has survived tobacco companies' motion to strike the complaint. In Indiana, a judge recently threw out the state's lawsuit.

Attorney General Margery Bronster said she was "ecstatic" with the ruling by Circuit Judge Kevin Chang for "upholding citizens' rights" and making the tobacco industry responsible for alleged wrongs such as targeting children.

Attorneys for the state said Hawaii's strong consumer protection laws triggered the ruling. The trial is scheduled for Sept. 7, 1999.

Ronald L. Motley, a mainland attorney acting as Hawaii's national trial counsel, is leading the charge with Bronster and local attorney Gary Galiher.

Motley has represented 20 states in tobacco lawsuits. Those include Mississippi, Florida and Texas, which received a total of more than $37 billion in settlements with the tobacco industry.

All state lawsuits that were allowed to go forward were settled before they reached trial.

Bronster said Hawaii's lawsuit could be settled before trial as well, but if not, she looked forward to the trial because "our case is strong."

Motley called Chang's decision "the most important ruling" in the five years during which states have pursued such lawsuits.

"In 38 state cases, no judge had upheld such wide-ranging ability for a state government to recover this amount of money," Motley said. He said the ruling would create "a degree of shock" on the mainland.

The estimated medical costs of smoking and smoke-related causes to the state total about $1 billion. But state laws permit the court to triple that amount to punish the offender.

The state's theories of liability include statutory counts for racketeering, antitrust violations and consumer protection violations. Common-law theories of negligence, strict liability, equitable indemnity and unjust enrichment, and voluntary undertaking also will proceed to trial.

Kenneth Fukunaga, representing Brown & Williamson Tobacco, deferred comment to attorney Mark Bennett, who he said was defense spokesman for the tobacco companies. Bennett could not be reached, nor could other defense attorneys.

Private attorneys are working with the state on a 20 percent contingency fee.