COMMONWEALTH v. PHILIP MORRIS USA, INC.

Nos. 803 C.D. 2014, 804 C.D. 2014

114 A.3d 37 (2015)

COMMONWEALTH of Pennsylvania by Kathleen G. KANE, in her official Capacity as Attorney General of the Commonwealth of Pennsylvania v. PHILIP MORRIS USA, INC., R.J. Reynolds Tobacco Company, Lorillard Tobacco Company, Liggett Group LLC, Commonwealth Brands, Inc., Daughters and Ryan, Inc., Farmer's Tobacco Company of Cynthiana, Inc., House of Prince A/S, Sherman 1400 Broadway N.Y.C. Inc., King Maker Marketing, Inc., Top Tobacco, L.P., Japan Tobacco International U.S.A., Inc., Kretek International, Inc., Peter Stokkebye Tobaksfabrik A/S, P.T. Djarum, Santa Fe Natural Tobacco Company, Inc., Von Eicken Group. Appeal of: R.J. Reynolds Tobacco Company, Philip Morris USA, Inc. and Lorillard Tobacco Company. Commonwealth of Pennsylvania by Kathleen G. Kane, in her official Capacity as Attorney General of the Commonwealth of Pennsylvania v. Philip Morris USA, Inc., R.J. Reynolds Tobacco Company, Lorillard Tobacco Company, Liggett Group Inc., Commonwealth Brands, Inc., Daughters and Ryan, Inc., Farmers Tobacco Company of Cynthiana, Inc., House of Prince A/S, Sherman 1400 Broadway N.Y.C. Inc., King Maker Marketing, Inc., Top Tobacco, L.P., Japan Tobacco International U.S.A., Inc., Kretek International, Inc., Peter Stokkebye Tobaksfabrik A/S, P.T. Djarum, Santa Fe Natural Tobacco Company, Inc., Von Eicken Group. Appeal of: Commonwealth Brands, Inc., Daughters and Ryan, Inc., House of Prince A/S, Liggett Group Inc., Sherman 1400 Broadway N.Y.C. Inc., King Maker Marketing, Inc., Top Tobacco, L.P., Japan Tobacco International U.S.A., Inc., Kretek International, Inc., Peter Stokkebye Tobaksfabrik A/S, P.T. Djarum, Santa Fe Natural Tobacco Company, Inc., Von Eicken Group, and Farmers Tobacco Company of Cynthiana, Inc.

Commonwealth Court of Pennsylvania.

Decided April 10, 2015.


Attorney(s) appearing for the Case

Peter J. Biersteker , Washington, DC, Robert J. Brookhiser , Washington, DC, Elizabeth B. McCallum , Washington, DC, and J. Kurt Straub , Philadelphia, for appellants.

Jonathan P. Guy and Robert Loeb , Washington, DC, and Joel M. Ressler , Chief Deputy Attorney General, Harrisburg, for appellee.

BEFORE: DAN PELLEGRINI, President Judge, ROBERT SIMPSON, Judge, MARY HANNAH LEAVITT, Judge, P. KEVIN BROBSON, Judge, and ANNE E. COVEY, Judge.


In this appeal, Appellants, who are the participating tobacco manufacturers (PMs)1 to the 1998 Master Settlement Agreement (MSA), ask whether the Court of Common Pleas of Philadelphia County2 (trial court) erred by modifying an arbitration panel's award. PMs assert...

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