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WASHINGTON LEGAL FOUNDATION Overview and Request for General Operating Support 1705 N Street, Northwest Washington, D.C. 20036 (202) 857-0240 February, 1988 CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION TIMN 315371

WASHINGTON LEGAL FOUNDATION GENERAL OPERATING SUPPORT REQUEST: The Washington Legal Foundation requests The Tobacco Institute to provide $5,000, or portion thereof, for general operating support of WLF's 1988 litigation and legal policy activities. I. INTRODUCTION The Washington Legal Foundation (WLF) is a national, non-profit, public interest law and policy center located in Washington, D.C. Established in 1977, WLF is dedi- cated to preserving our free market economy, promoting a strong national defense, and a limited and accountable government. WLF promotes this philosophy through prece- dent setting litigation and through timely publication of original research. WLF not only provides a forum for talented legal scholars to be heard and included in the policy process, but it also provides an outlet for legal authorities to counter the one-sided views of over 155 anti-business coalitions. WLF attorneys daily confer with federal and state legislators and judges, White House and Administration officials, CEOs and their corporate counsel, legal scholars, and the media on critical legal issues. II. LITIGATION Over the past ten years, WLF has been involved in excess of 100 litigation,. suits and 150 rulemaking proceedings. WLF has also represented nearly 235 Members of Congress and Administration officials in landmark Supreme Court cases as well as worked with over 25 state Attorneys General in courtrooms across the country. But numbers alone do not tell the real story -- results do. In 1987, WLF won several Supreme Court cases as well as provided insightful comments on important business- related rulemaking proceedings. Tl-MN 315372 CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION

In one case, Tull v. United States, the U.S. Supreme Court handed WLF a major victory by agreeing that under the Seventh Amendment, businessmen are entitled to a jury trial whenever the government seeks civil penalties for violations of federal laws and regulations. In a related case, WLF recently filed a brief with the Illinois Supreme Court and is awaiting a decision in the case People of the State of Illinois v. Chicago Magnet Wire Corporation. Local prosecutors charged five corporate officials with aggravated battery, reckless conduct, and conspiracy under Illinois criminal laws for alleged injuries to employees resulting from chemicals in the workplace. WLF argued that regulations promulgated under OSHA preempted the Illinois criminal laws, and that there were no federal or state charges that the OSHA standards violated. With regard to rulemaking proceedings, WLF regularly provides federal agencies with a pro-free enterprise point of view on a vride range of issues. For instance, WLF opposed making the private sector responsible for controlling the immigration of aliens. Also, WLF opposed investment restrictions on banks and filed comments urging the FDA to lift its ban on food labels containing health-related information. Further- more, WLF continually fights unnecessary and burdensome regulatory procedures, many of which are promulgated by OSHA and the EPA. WLF's participation in the federal administrative process is heightened by membership in the Administrative Conference of the United States. This governmental body is composed of the heads of each federal government agency and a select group of federal judges, private sector attorneys and law professors. In addition, WLF is the only public interest legal group on the Executive Committee of the Products Lia- bility Alliance (TPLA). WLF also works closely with the Coalition for Uniform Products Liability Laws (CUPLL). III. LEGAL STUDIES DIVISION Realizing the need for "intellectual legal lobbying," WLF established the Legal Studies Division in 1986. Legal Studies is dedicated to expanding the pro- free enterprise legal idea base by conducting,original research and writing. It also provides a diverse array of publications for Corporate CEOs and their general counsel, state and federal judges, Members of Congress, Administration officials, academia, and the media. TIMN 315373 CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION

WLF's Legal Studies Division prints and circulates a wide variety of publications aimed at the very people who shape legal policy. These publications vary in style from concise bi-weekly Legal Backgrounders (1-8 pages in length), to in-depth monthly Working Papers (30-50 pages in length), to law review length monographs. Topics covered in WLF publications generally cover law and economic issues with a corporate/business regulation orientation. Legal Studies greatest success has been its ability to attract well-respected authors to its program. Warren Anderson, former Chairman of Union Carbide, wrote a WLF Legal Backgrounder on the lessons his company learned as a result of the Bhopal tragedy. Former Citicorp Chairman Walter Wriston wrote a piece on banking deregulation. And Interior Secretary Donald Hodel wrote a Backgrounde__r on developing the Arctic National Wildlife Refuge in Alaska. Legal Studies also possesses in-house authors specializing in corporate, constitutional, and media law. In addition, many authors are drawn from leading law firms and from WLF's distinguished Academic Board of Advisors. Legal Studies publications are unique in that they are timely and address critical legal issues that affect our daily lives. Legal Studies publications have re- sulted in new policies being developed and/or modified at both the state and federal levels. In conjunction with its publications, conferences are held and task forces are formed in order to further discuss complex legal policy questions. IV. THE MEDIA WLF continues to gain national recognition and respect as demonstrated by the number of media appearances made by WLF attorneys. In 1987 alone, WLF attorneys appeared on over 350 television and radio interview programs. Such programs included NBC's "Nightly News" and "Today" shows, CBS'-s "Evening News," ABC's "Good Morning America," PBS's "MacNeil/Lehrer NewsHour," CNN's "Moneyline" and "Crossfire," just to name a few. In addition, WLF attorneys are regularly quoted in The New York Times, The Washington Post, The Wall Street Journal, Time and Newsweek magazines, and frequently appear on the AP and UPI wire services. TIMN 315374 CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION

I V. FINANCE The Washington Legal Foundation is a non=-,p-):nfa_t, fully tax-exempt organization classified as a_t-`01{(:)3 public foundation under the Internal Revenue Code. WLF receives support from over 120,000 ir.n}.-r 1{1ua7.s and over 350 corporations and foundations. Seventy-.t.ven percent of all dollars raised directly fund the of WLF 's public interest activities. The rema 7.r(.':.x is allocated to administrative, communicatians, ;~ ir1d development support. WLF does not reta in func, r: ,-) i sl.:Zg (~~. ti~ :,ycr) consultants and does not accept government grants or court awarded fees. Because WLF does not accept government supy,ox i, it counts solely on the generosity of corporat:i uns, foundations, and individuals for its operating ru•P~-nue. Without this support, WLF cannot realistically expt-.•,.t to meet the legal challenges that face American busJne<~s. Therefore, WLF would 1 ike to request a 1988 rjcr(_t•a1 operating grant of 5 000, or portion thereof, 1---i The Tobacco Institute. Gifts of stock, real estate, '(-.n(ls and endowment bequests are also appreciated. VI. YOUR SUPPORT IS VITAL Right now, anti-business forces are signi.fij c:,intly larger and better funded that those promoting 1_°rce enterprise system. Activist groups have cczt~e to understand how to use the court to promote their xlt:rrow special interests -- and their success at manipti,..;tt.; ng the court to rule against business is ever increasing. In an age when courts and attorneys znfl.z=-=nce almost every aspect of corporate and private life, it becomes even more important for you to invest in '•.he Washington Legal Foundation. WLF is a dynamic, aggressive, future-oriented ltygal policy center. Your support will guarantee that a pro- free enterprise voice is heard throughout America, 1)oth in the courts and in the policy-making arena. As intellectual lobbyists, WLF will bring a balance to i;he debate of legal policy before the Congress, the coTi?~ts, the Administration, and the public. TIMN 315375 CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION