BHL Bogen

BHL Bogen
BridgehouseLaw LLP - Your Business Law Firm

Sunday, April 30, 2006

State Sovereignty: major new case in the US

This is another US Supreme Court case. I found this case as being for review at the US Supreme Court. However it is not officially "accepted" by the court. So they may never hear this case because of the right to tale there cases only in special circumstances.

Background:
The three companies involved did not join in the $206 billion settlement plan in the tabaco cases. They are Grand River Enterprises Six Nations, Lt., a Canadian cigarette maker that is owned by the Iroquois tribes; Naitonwide Tobacco, Inc., a Washington State company that distributes cigarettes made in the Philippines, and 3B Holdings, inc., a Washington State maker of loose tobacco. The law suit was filed in New York.

Because they did join in the agreement, to put money into a special fund in each state if they do not join the settlement in the future. Ordinarily, it conceded, New York would not be the proper place to challenge another state's laws and their enforcement. But the fact that representatives of the sovereign states did meet intentionallly in New York to jointly settle the states' lawsuits against the industry, and there agreed to the enactment of individual state laws, "New York is the proper forum for this lawsuit."

Is New York the proper forum?

Well for foreign client the question may be: we are sued in New York. Why?

Greetings,
RvH

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