Commonwealth v. Philip Morris Inc.

40 Pa. D. & C.4th 225, 1999 Pa. Dist. & Cnty. Dec. LEXIS 45
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedFebruary 26, 1999
Docketno. 2443
StatusPublished
Cited by1 cases

This text of 40 Pa. D. & C.4th 225 (Commonwealth v. Philip Morris Inc.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth v. Philip Morris Inc., 40 Pa. D. & C.4th 225, 1999 Pa. Dist. & Cnty. Dec. LEXIS 45 (Pa. Super. Ct. 1999).

Opinion

HERRON, J.,

I. INTRODUCTION

On January 13, 1999, this court approved consent decrees and final judgments presented by the Commonwealth of Pennsylvania and various defendant tobacco manufacturers to settle and end their landmark lawsuit. This court also denied petitions to intervene by a group of hospitals, Allegheny County, and various private anti-tobacco activists and organizations filed shortly after the settlement agreement was announced in November 1998.

Paradoxically, some of the petitioners stated that they neither opposed the settlement nor sought to participate in it. Rather, they asked this court for an interpretive opinion on whether any future claims against the tobacco defendants could be barred or affected by the release provisions in the settlement agreement (the master settlement agreement or MSA). Alternatively, other pe[227]*227titioners asked this court to delete language from the MSA’s release provisions despite protests from the Commonwealth that such revisions might jeopardize the settlement agreement as to Pennsylvania and result in its exclusion from the monetary and non-monetary benefits of the settlement.1

Significantly, except for the group of hospitals, all of the other petitioners requested an interpretive opinion without having filed a claim against the tobacco defendants. Moreover, the activists and Allegheny County asserted broad, anticipatory policy arguments against the indemnification scheme within the MSA. They argued, for instance, that it would force the state to come to the defense of the tobacco industry, thereby pitting it against future claims by the activists and Allegheny County. These broad public policy arguments — as distinguished from constitutional arguments or arguments premised on case law or statutes arising in an actual case or controversy — did not present justiciable standards for court review on the record presented by the petitioners.

These petitions, thus, were not based on an actual case or controversy but sought instead an advisory opinion despite a long-standing tenet of jurisprudence against providing them. See generally, Gabel v. Cambruzzi, 532 Pa. 584, 592, 616 A.2d 1364, 1369 (1992) (where court lacks sufficient facts to issue anything but an advisory opinion it “will not break its tradition of refusing to author advisory opinions”); In re Application of Milton [228]*228Hershey Medical Center, 407 Pa. Super. 565, 571, 595 A.2d 1290, 1293 (1991), aff’d, 535 Pa. 9, 634 A.2d 159 (1993), quoting Okkerse v. Howe, 521 Pa. 509, 520, 556 A.2d 827, 833 (1989) (an advisory opinion is without legal effect); Suehr v. State Ethics Commission, 651 A.2d 648, 649 (Pa. Commw. 1994), alloc. denied, 541 Pa. 647, 663 A.2d 697 (1995) (where no case or controversy exists, a court should not render an advisory opinion).

The only petitioners who had an actual claim pending — the group of hospitals — had filed their complaint in Allegheny County shortly after the settlement was announced. Any ruling on the impact of the MSA on this claim is both premature and more appropriately decided by the presiding judge in that litigation if, and when, the MSA release provisions are raised.

The precise legal issues raised by these petitions must be carefully defined. The petitions of the activists and Allegheny County, for instance, raise the following issue: Did the petitioners establish a “legally enforceable interest” to intervene in the final, settlement stages of the Commonwealth’s highly innovative — but risky— lawsuit based on their concern that the MSA might affect their future (but yet unfiled) actions against the tobacco defendants. The petitioners ultimately failed to establish such an interest because their claims do not present a case or controversy ripe for disposition. The record created during the intervention hearing and in the memoranda as to the inherent limitations within the releases might, however, ultimately prove useful— although a determination of the actual scope of these releases must await an actual case or controversy. There was, moreover, no dispute that the releases would not affect the rights of individuals who suffer tobacco-related injuries from bringing legal actions against the [229]*229tobacco defendants to recover for those injuries.2 Furthermore, the Commonwealth and tobacco defendants indicated that the release would not bar such other claims as requests for injunctive relief.3

Several of the petitioners have filed appeals of the orders denying their intervention. The following opinion is therefore entered to address the many concerns and issues raised by the petitioners and to explain the denial of the intervention petitions.

II. PROCEDURAL BACKGROUND

After months of negotiations,4 46 states, the District of Columbia and five territories on November 23,1998, [230]*230executed5 two agreements to settle their nationwide lawsuits against tobacco manufacturers — the master settlement agreement (MSA) and the smokeless tobacco master settlement agreement (STMSA).6 In signing these agreements, the Commonwealth of Pennsylvania, through its attorney general, D. Michael Fisher, resolved to end the lawsuit it had filed in April 1997 against various tobacco manufacturers, their public relations agency and the three trade associations created by them (tobacco defendants).7

The MSA required each settling state to file a consent decree with its appropriate state court.8 Consequently, on December 11,1998, the Commonwealth and tobacco defendants9 filed joint motions to approve the settlement and consent decrees. Before and after this joint motion was filed, petitions to intervene were filed by individuals [231]*231and organizations (petitioners) representing a cross-section of interests: private anti-tobacco activists and organizations; not-for-profit hospitals that had filed a complaint against tobacco manufacturers seeking recovery, inter alia, of unreimbursed healthcare costs of Medicaid recipients,10 and Allegheny County. In addition, the City of Philadelphia filed an amicus brief to assist the court in evaluating the MSA.11 A common bond among these petitioners was an assertion that they did not oppose the MSA in general;12 they were, however, deeply concerned that release and offset provisions within the MSA might stifle or destroy their right to bring effective legal actions against the tobacco defendants in the future — even though the petitioners were not signatories to the settlement agreement.

The issues raised by the petitioners — whether they should be granted leave to intervene because release provisions in the MSA might affect any future action against the tobacco defendants — were serious. During the intervention hearings that were held on two separate days, this court sought to raise and address the concerns raised by the petitioners. Ultimately, upon consideration [232]

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Related

Commonwealth ex rel. Fisher v. Phillip Morris, Inc.
736 A.2d 705 (Commonwealth Court of Pennsylvania, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
40 Pa. D. & C.4th 225, 1999 Pa. Dist. & Cnty. Dec. LEXIS 45, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-v-philip-morris-inc-pactcomplphilad-1999.