In Re Hood Ex Rel. State Tobacco Litigation

958 So. 2d 790, 2007 WL 1704387
CourtMississippi Supreme Court
DecidedJune 14, 2007
Docket2006-SA-01088-SCT
StatusPublished
Cited by26 cases

This text of 958 So. 2d 790 (In Re Hood Ex Rel. State Tobacco Litigation) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Hood Ex Rel. State Tobacco Litigation, 958 So. 2d 790, 2007 WL 1704387 (Mich. 2007).

Opinion

958 So.2d 790 (2007)

In re Jim HOOD, Attorney General, ex rel., STATE of Mississippi TOBACCO LITIGATION.
The Partnership for a Healthy Mississippi, Intervenor,
v.
State of Mississippi, by and Through Governor Haley Barbour, The Mississippi Division of Medicaid in the Office of the Governor, and The Mississippi Health Care Trust Fund.

No. 2006-SA-01088-SCT.

Supreme Court of Mississippi.

June 14, 2007.

*792 James W. Craig, Fred L. Banks, Jr., James W. Shelson, Robert Gregg Mayer, Office of the Attorney General, by Mary Jo Woods, Harold E. Pizzetta, III, attorneys for appellants.

John G. Corlew, Virginia T. Munford, James H. Heidelberg, Stephen Walker Burrow, Bradley S. Clanton, Joan Leigh Lucas, attorneys for appellees.

EN BANC.

CARLSON, Justice, for the Court.

¶ 1. On May 30, 2006, the Jackson County Chancery Court entered an order vacating its previously-entered order of, December 22, 2000, which had allocated $20 million annually out of the tobacco settlement funds to the Partnership for a *793 Healthy Mississippi. Additionally, the order of May 30, 2006, required that the payment made to the Partnership in January, 2006, be deposited into the Mississippi Health Care Trust Fund. Aggrieved by the entry of the chancery court order of May 30, 2006, Attorney General Jim Hood, upon relation or information and on behalf of the State of Mississippi and the Partnership for a Healthy Mississippi, has appealed to us. The Governor, Division of Medicaid, and Mississippi Health Care Trust Fund have cross-appealed, asserting that the chancellor erred in failing to transfer the remaining Partnership funds to the Health Care Trust Fund. Finding the December 22, 2000, court-directed allocation of public monies to a private entity to have been an invalid and unenforceable order and thus void ab initio, we affirm the chancery court's May 30, 2006, order vacating its prior order, though for reasons different from those stated by the chancellor. However, we find that the chancellor erred in failing to direct the Partnership for a Healthy Mississippi to relinquish all funds received from the prior, court-ordered diversion of public monies. In the end, we affirm on direct appeal and reverse and render on cross-appeal.

FACTS AND PROCEEDINGS IN THE TRIAL COURT

¶ 2. On May 23, 1994, the Attorney General for the State of Mississippi, Mike Moore, filed a civil action against the tobacco industry in the Chancery Court of Jackson County. The various tobacco companies specifically named in the original litigation as defendants included: The American Tobacco Company; American Brands, Inc.; R.J. Reynolds Tobacco Company; RJR Nabisco, Inc.; Batus Corporation; Brown & Williamson Tobacco Corporation; Philip Morris Companies, Inc.; Philip Morris Incorporated (Philip Morris U.S.A.); Liggett Group, Inc.; Liggett & Myers, Inc.; Brooke Group, Limited; Loews Corporation; Lorillard Corporation; The Council for Tobacco Research — U.S.A. Inc. (Successor to Tobacco Institute Research Committee); The Tobacco Institute, Inc.; Hill & Knowlton, Inc.; Corr-Williams Tobacco Company; Generic Products Corporation; Laurel Cigar & Tobacco Company, Inc.; Long Wholesale, Incorporated; The Lewis Bear Company; Wigley and Culp, Inc. of Gulfport, Mississippi; "A" Through "Z" Entities (Miss. R. Civ. P. 9(h) defendants) (the tobacco defendants). In the State's Complaint, the Attorney General alleged, inter alia,

[T]he State [of Mississippi] has suffered harm and has incurred significant expenses associated with the provision of necessary health care and other such necessary assistance under various State programs to certain eligible citizens numbering in the thousands who suffer, or who have suffered, from tobacco-related injuries, diseases or sickness. This civil action is founded on principles of equity and is brought under Mississippi law to avoid a multiplicity of lawsuits in recovering such damages, and for such other relief as equitably may be obtained, for the harm thus unjustly, intentionally and wrongfully done and continuing to be done to the State and to its citizens by the various defendants, who have been and continue to be unjustly enriched thereby at the expense of the State.
In paragraph 40 of the Complaint, the State of Mississippi further alleged:
The State spends millions of dollars each year to provide or pay for health care and other necessary facilities and services on behalf of indigents and other eligible citizens whose said health care costs are directly caused by tobacco-induced cardiovascular disease, lung *794 cancer, emphysema and other respiratory and other diseases.

Thus, the Complaint laid out four theories of recovery: restitution/unjust enrichment; indemnity; common law public nuisance; and injunctive relief.

¶ 3. Under the first theory of recovery — restitution/unjust enrichment — the State of Mississippi stated in its Complaint:

In equity and fairness, it is the defendants, not the taxpayers of Mississippi, who should bear the costs of tobacco inflicted diseases. By avoiding their own duties to stand financially responsible for the harm done by their cigarettes, the defendants wrongfully have forced the State of Mississippi to perform such duties and to pay the health care costs of tobacco related disease. As a result, the defendants have been unjustly enriched to the extent that Mississippi's taxpayers have had to pay these costs.

¶ 4. As to the second theory of recovery — indemnity — the State of Mississippi contended:

As a direct and proximate result of the breaches of duty and omissions of the defendants as alleged above, the State was obligated to pay and has paid millions of dollars in the past for the provision of necessary medical care, facilities and services for certain of those aforementioned Mississippi citizens injured by the defendants' cigarettes and unable to afford and otherwise obtain such necessary medical care, facilities and services.

¶ 5. Concerning the third theory of recovery — common law public nuisance — the State of Mississippi alleged:

By their wrongful conduct as alleged above, the defendants have intentionally and unreasonably interfered with the public's right to be free from unwarranted injury, disease and sickness, and have caused damage to the public health, the public safety and the general welfare of the citizens of Mississippi, and have thereby wrongfully caused the State to expend millions of dollars in support of the public health and welfare.

¶ 6. Therefore, under the first three theories of recovery, the State of Mississippi sought relief as follows:

a. for damages in an amount which is sufficient to provide restitution and re-pay the State for the sums the State has expended on account of the defendants' wrongful conduct, with said amount to be determined at trial;
b. for damages in restitution for the sums of money to be paid by the State in the future on account of the defendants' wrongful conduct;
c. for pre-judgment interest, as well as the State's reasonable attorneys' fees, expert witness fees and other costs of this action;
d. for punitive damages in such amount as will sufficiently punish the defendants for their conduct and as will serve as an example to prevent a repetition of such conduct in the future;
e.

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Cite This Page — Counsel Stack

Bluebook (online)
958 So. 2d 790, 2007 WL 1704387, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-hood-ex-rel-state-tobacco-litigation-miss-2007.