Judge Upholds Dismissal of Union Funds’ Suit

Philip Morris Cos., R.J. Reynolds Tobacco Holdings Inc. and other major tobacco companies won the dismissal of a suit filed by union trust funds that sought to recover money spent treating smoking-related illnesses. The U.S. 5th Circuit Court of Appeals affirmed a lower court’s decision to throw out the suit, ruling that the harm claimed by the plaintiffs was too far removed from the tobacco companies’ alleged conduct. Although individual plaintiffs have met with some success suing the industry for damages, in only one case thus far has a third-party complaint, such as one filed by a labor union, successfully made its way to trial. Similar claims have been dismissed before trial across the country. The 5th Circuit decision written by Judge Edith Jones echoes four earlier federal appeals court rulings. Federal appeals courts have said it would be difficult to assess damages against the tobacco companies in suits in which the plaintiffs are not individual smokers.