Tobacco Documents Online

au. at JLLU.lA1<Y l.U3H ) cases) to handle future tobacco litigation with independent trustees in order to make sure that weak cases are defended and strong cases are settled, and to achieve an overall expeditious resolution. A related proposal would create a second trust to pay smoking/asbestos claims funded by a $35 billion payment. e. Since the purported premise of the June 20 proposal is to provide for overal] fairness and uniformity, a proposal to alter those state laws, such as Texas and New Jersey, where it is inordinately difficult to bring a tobacco claim by an individual to create a more Level playing field with other state laws. f. Please provide us with a statement of the total annual litigation expense (incurred by Phillip Morris and the other participating companies individually and for the industry as a whole) in defending any and all product liability and other tobacco- related liability and regulatory litigation brought or threatened in the United States over the last ten years, broken down by year. -3-

v......u ..- .•- ..l.lllY ..V.].II. Questions for Meyer Koplow, Esq. Watchell, Lipton, Rosen & Katz Coneressman Inglis: I. What do you think would be accomplished by continued litigation of these state cases? 2. If our goal is to change industry behavior and to protect public health, how is this best achieved? I meaa, if we truly want to reduce the appeal of smoking, cari t restrictions on advertising be achieved only through voluntary means which the industry has agreed to undertake under the settlement? 3. Some states have only lately decided to pursue litigation with the tobacco industry. As a matter of equity, how do we best ensure that all states can recoup costs they have incurred that are attributable to smoking? While the industry might settle the claims of some states, isn't it possible that other cases will go to trial? And isn't It also possible that some states whose cases go to trial might also lose? 4. It is my understanding that a certain portion of the monies receive under the settlement will be allocated to education programs. cessation programs and other public health initiatives. If a settlement is not passed. is there any way to ensure that any monies recovered by the state are allocated for these purposes? 5. I understand that this hearing is focusing on the civil liability provisions of the proposed settlement, but I would like to get your input on the following. I coine from South Carolina which has historically been a major tobacco producer. Will the tobacco Patmers in my home state fare better if we do or do not pass a tobacco settlement this Congress? Qn~essman Jenkins: We heard from an Administration witness at the February 51h hearing. I understand that the Administration was involved in the negotiation of the proposed agreement. Who was involved from the Administration and what role did they play? -I-

......-..~. ,,~,n. Congressman Convers; 1. In order for the Committee to more properly assess the desirability of providing liability protections to the tobacco industry and designating a specific dollar payment by the tobacco industry in lieu of punitive damages for past misconduct, please provide me with copies of AU documents concerning (1) the marketing of tobacco products to African- Americans, Hispanics, and other minorities; (2) the marketing of tobacco products to youth; (3) any knowledge by the tobacco industry and its representatives concerning the addictive or health effects of tobacco products; and (4) any documents concerning arrangements between any members of the tobacco industry and falm makers concerning the use of tobacco products in films. In order to fully respond to this question, please contact your client Phillip Ivlorris as well as representatives of other members of the tobacco industry. Provide me with copies of all of the above regardless of whether any such documents may have been previously released or made available to the public and please provide an accompanying index. To the extent you are unwtillinE to provide any of the above due to a claim of privilege or other rationale, please describe the general nature of the document along with a statement of the privilege or other claim. Also, if any privilege is asserted, please provide me with a statement of whether Phillip Morris and the tobacco industry- would assert such claim in response to a Congressional subpoena, and the legal rationale for such a claim (e.g., whether it is grounded in the U.S. Constitution, the Federal Rules of Procedure, or other legal basis). 2. Piease provide any calculations or research the tobacco industry may have performed concerning the likely dollar requirements of persons and entities injured by tobacco products. 3. Please state the tobacco industry's reaction to the following proposals previously discussed or raised at the February 5'h hearing: a. Retaining punitive damage claims with respect to claims based on facts not disclosed by the tobacco industry to Congress. b. Rather than barring all class action and aggregation devices, a statutory rule that not more than a specified number of cases could be consolidated or joined for a tobacco case (e.g., 200, 500. or 1.000). c. Make individual actions viable by shifting the burden of proof on causation so that defendants are required to disprove that exposure to tobacco did not cause plaintiff s injury. d. Establish a settlement trust fund (modeled on the Dalkon shield and asbestos -2-