R.J. Reynolds Tobacco Co. v. Dist. Ct.

2022 NV 55, 514 P.3d 425
CourtNevada Supreme Court
DecidedJuly 28, 2022
Docket83724
StatusPublished
Cited by13 cases

This text of 2022 NV 55 (R.J. Reynolds Tobacco Co. v. Dist. Ct.) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R.J. Reynolds Tobacco Co. v. Dist. Ct., 2022 NV 55, 514 P.3d 425 (Neb. 2022).

Opinion

138 Nev., Advance Opinion 55 IN THE SUPREME COURT OF THE STATE OF NEVADA

R.J. REYNOLDS TOBACCO COMPANY, No. 83724 A FOREIGN CORPORATION, INDIVIDUALLY AND AS SUCCESSOR- BY-MERGER TO LORILLARD TOBACCO COMPANY AND AS SUCCESSOR-IN-INTEREST TO THE FPLIE3 UNITED STATES TOBACCO BUSINESS OF BROWN & JUL 28 2022 WILLIAMSON TOBACCO TH Et 0' CLE 0 SU CORPORATION, WHICH IS THE BY HIEF DEPUTY CLERK SUCCESSOR-BY-MERGER TO THE AMERICAN TOBACCO COMPANY, Petitioner, vs. THE EIGHTH JUDICIAL DISTRICT COURT OF THE STATE OF NEVADA, IN AND FOR THE COUNTY OF CLARK; AND THE HONORABLE NADIA KRALL, DISTRICT JUDGE, Respondents, and SANDRA CAMACHO, INDIVIDUALLY; ANTHONY CAMACHO, INDIVIDUALLY; PHILIP MORRIS USA, INC., A FOREIGN CORPORATION; LIGGETT GROUP, LLC, A FOREIGN CORPORATION; AND ASM NATIONWIDE CORPORATION, D/B/A SILVERADO SMOKES & CIGARS, A DOMESTIC CORPORATION, Re& Parties in Interest.

Original petition for a writ of mandamus challenging a district court order granting reconsideration of a prior order dismissing a party in a civil action. SUPREME COURT OF NEVADA n l3f27,1 Oh 1447A e Petition denied.

Bailey Kennedy and Dennis L. Kennedy, Joseph A. Liebman, and Rebecca L. Crooker, Las Vegas; King & Spalding LLP and Val Leppert, Atlanta, Georgia; King & Spalding LLP and Ursula Marie Henninger, Charlotte, North Carolina, for Petitioner.

Claggett & Sykes Law Firm and Sean K. Claggett, Matthew S. Granda, and Micah S. Echols, Las Vegas; Kelley Uustal and Kimberly L. Wald, Michael A. Hersh, and Fan Li, Fort Lauderdale, Florida, for Real Parties in Interest Sandra Camacho and Anthony Camacho.

Lewis Roca Rothgerber Christie LLP and Daniel F. PoIsenberg, J. Christopher Jorgensen, and Abraham G. Smith, Las Vegas, for Real Party in Interest Liggett Group, LLC.

Weinberg, Wheeler, Hudgins, Gunn & Dial, LLC, and D. Lee Roberts, Jr., Las Vegas, for Real Parties in Interest Philip Morris USA, Inc., and ASM Nationwide Corporation.

BEFORE THE SUPREME COURT, SILVER, CADISH, and PICKERING, „H.

OPINION

By the Court, CADISH, J.: Petitioner challenges a district court order reinstating a deceptive trade practices complaint, arguing that real parties in interest/plaintiffs lack standing to bring that claim against petitioner because they never used petitioner's products and thus cannot show that they are victims of consumer fraud who sustained damages from petitioner's

SUPREME COURT OF NEVADA 2 (0) 1947A .4ZSP'A, allegedly deceptive trade practices under NRS 41.600(1). As NRS 41.600 creates a cause of action for victims of consumer fraud, which includes deceptive trade practices under the Nevada Deceptive Trade Practices Act (NDTPA), and nothing in the NDTPA limits consumer fraud victims to only those who used a manufacturer's product, we conclude that the district court correctly granted reconsideration and reinstated the complaint, as its prior order granting petitioner's motion to dismiss rested on an overly narrow interpretation of NRS 41.600(1). We further conclude that plaintiffs pleaded sufficient facts, including that they were directly harmed by petitioner's false and misleading advertising, to bring an NDTPA claim against petitioner. Thus, mandamus relief is not warranted, and we deny the petition. FACTS AND PROCEDURAL HISTORY Real party in interest Sandra Camacho began smoking cigarettes in 1964 and continued to smoke until 2017. She smoked L&M cigarettes, which were manufactured by real party in interest Liggett Group, LLC, and Marlboro and Basic cigarettes, which were manufactured by real party in interest Philip Morris USA, Inc. Sandra concedes that she did not purchase or use any of petitioner R.J. Reynolds Tobacco Company's products. In March 2018, Sandra was diagnosed with laryngeal cancer caused by her cigarette use. Sandra and her husband, real party in interest Anthony Camacho, filed suit against Liggett, Philip Morris, and Reynolds. The Camachos raised several claims, including fraud and products-liability- based claims against Philip Morris and Liggett, and a civil conspiracy claim against all three cigarette manufacturers alleging that they "acted in concert to accomplish an unlawful objective for the purposes of harming... Sandra," namely by concealing, omitting, or otherwise misrepresenting the health hazards of cigarettes in various public SUPREME COURT OF NEVADA 3 407 194704. ., .111tr statements and marketing materials. The Camachos also asserted a claim for violating the NDTPA, alleging that Reynolds and the other defendants knowingly made false representations in their advertisements. Reynolds filed a motion to dismiss the two claims against it. It argued that although the Carnachos labeled their claims as a violation of the NDTPA and civil conspiracy, the claims were effectively products- liability claims. Reynolds asserted that those claims failed as a matter of law because product use "is a fundamental requirement" of a products- liability claim, and Sandra did not use a Reynolds product. Similarly, Reynolds contended that the Camachos' NDTPA claim failed, as there was "no connection between Reynolds' alleged deceptive trade practices as they relate to the health risk of its particular products and [Sandra's] alleged laryngeal cancer" because Sandra never used a Reynolds product. The Camachos opposed the motion to dismiss, arguing that under Nevada law neither a civil conspiracy claim nor a deceptive trade- practice claim includes a product-use requirement. They contended that the cases Reynolds relied on in support of a product-use requirement involved claims for negligence, strict products liability, or fraud, as opposed to an NDTPA- or civil-conspiracy-based theory of liability. Regarding the NDTPA claim specifically, the Camachos asserted that they adequately pleaded causation, as they alleged that but for cigarette manufacturers engaging in "concerted actions" to misrepresent the health risks of smoking, Sandra would not have continued to smoke cigarettes. The district court granted Reynolds' motion to dismiss, concluding that Sandra was not a consumer fraud victim under NRS 41.600(1) because she did not use a Reynolds product.

SUPREME COURT OF NEVADA 4 JO) 1947A MOP The Camachos filed a motion for reconsideration, asserting that a deceptive trade practice under the NDTPA includes a business's knowingly false representation regarding the product for sale and that a sale under the NDTPA includes an attempt to sell. Because a sale includes an attempt to sell, and an attempt to sell implies a failure to sell, the Camachos argued that the district court clearly erred by reading a product- use requirement into the NDTPA. Because NRS 41.600(1) confers standing on victims of consumer fraud, which includes victims of deceptive trade practices as defined by the NDTPA, the Camachos asserted they pleaded viable claims against Reynolds, even though Sandra never used a Reynolds product. The district court granted reconsideration over Reynolds' opposition, concluding that the earlier dismissal order was clearly erroneous because it added an atextual product-use requirement or legal- relationship requirement into the NDTPA.

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Bluebook (online)
2022 NV 55, 514 P.3d 425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rj-reynolds-tobacco-co-v-dist-ct-nev-2022.