Tobacco Documents Online

KASOWITZ. BENSON, TOBEES & FRIEDMAN LLP 1301 AVENUE OF THE AMERICAS NEW YORK, NEW YORK i0019-6022 WRITER .~i OIREGT OIAL MUMBER 212-506-1 ]QO (212) 506-1721 FACSIMILE: 212-506-1800 August 13, 1998 By Facsimile and Recrular Mail Walter P. Loughlin, Esq. Latham & Watkins 885 Third Avenue Suite 1000 New York, New York 10022 Re: Brooke Group Ltd. and Ligaett Group Inc. 700 LOUISIANASTREE? HOUSTON, ~ 77002 713-220•BBOO Dear Mr. Loughlin: I am in receipt of your letter of August 10 to Stanley Arkin, and I will consider it a response to my August 7 letter to you as well. Your letter raises two concerns with regard to Latham & Watkins' turning over of Liggett-related files in its possession or control, both of which concerns are wholly unfounded. First, you question how it is that Liggett and our firm can make certain that the privilege claims of the other tobacco companies are fully protected. This is an issue that has been long resolved. Over the past 18 months, upon the numerous occasions that Liggett was to produce documents to plaintiffs in tobacco-related lawsuits or to courts, our firm has first provided the other tobacco companies with an opportunity to review all documents proposed to be produced, and to set forth any and all privilege or confidentiality claims those companies wish to assert with respect to such documents. Any document to which the other companies raised privilege or confidentiality objections have not be produced by Liggett unless and until such objections have been resolved. With respect to the Liggett-related documents in your firm's possession or control, to the extent that it becomes necessary to produce any such documents, the same protective steps certainly will be taken. None of the Liggett-related documents currently in Latham & Watkins' possession or control will be turned over or otherwise disclosed without first giving the other tobacco companies full opportunity to assert their full array of privilege and confidentiality claims. h3 ® Co 4 K) hs c.a M L (tt

KASOWITZ, BENSON, TORRES Sc FRIEDMAN LLP To date, no tobacco company has claimed that Liggett improperly has produced or turned over documents as to which joint defense privilege or confidentiality claims would apply. It is, therefore, highly disconcerting -- and ethically suspect -- that such claims only would be suggested by Liggett's own former counsel. Your concern with respect to payment to Latham & Watkins is also a non-issue. As I wrote in my letter of August 7, Liggett already has agreed to pay Latham & Watkins for reasonable costs incurred in assembling the Liggett-related files for our review. Since, as set forth above, there is no reason for further steps to be taken by Latham & Watkins in order to accomplish the proper turning over of Liggett-related files, no costs other than for assembling of the files need be incurred. Again, please advise me immediately as to when you will make the Liggett-related files available for our review. Very truly yours, 1) ~_ .r r...-x~.~ Aaron H. Marks cc: Stanley S. Arkin, Esq. Marc N. Bell, Esq.