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The New Mexico Court of Appeals has revived a class-action lawsuit against several cigarette-makers over allegations of a price-fixing conspiracy.
The ruling Tuesday overturned a 2006 decision by a Santa Fe County District Court against New Mexico consumers who brought the damage lawsuit against tobacco companies, including Philip Morris Inc. and R.J. Reynolds Tobacco Co.
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To summarize, Plaintiffs have come forward with evidence that during the class period the tobacco industry exhibited an unprecedented degree of parallelism, beginning with the July 1993 consolidation of what had previously been ten price tiers into two price tiers, and continuing through twelve in-tandem increases in the prices of both premium and discount cigarettes. This multi-variable, multi-price-tier parallelism goes well beyond the price leadership within a single-tier market demonstrated by the cigarette industry prior to the introduction of generic cigarettes.
Further, the parallelism in the present case involves parallelism among market tiers which formerly had been in vigorous competition, resulting in a significant differential between the list prices of the cheapest cigarettes and the most expensive cigarettes. . . .
We hold merely that Plaintiffs’ evidence allows a reasonable factfinder to reject conscious parallelism as a plausible explanation, thereby leaving the competing inference of conspiracy as the most likely explanation for the parallelism proven by Plaintiffs.
Lorillard & Liggett
{46} In its answer brief, Lorillard points out that Plaintiffs’ expert, Dr. Leffler, testified during his deposition that he was unaware of any conduct by Lorillard during the class period that was not “completely consistent with conscious parallelism.” . . . In view of Dr. Leffler’s concessions, we conclude that Plaintiffs have not satisfied their burden under Matsushita of coming forward with evidence that would allow a reasonable juror to exclude lawful conscious parallelism as the most likely explanation for Lorillard’s and Liggett’s adoption of parallel price increases. Accordingly, we affirm the grant of summary judgment as to these two Defendants. We reverse the summary judgment in favor of Defendants Philip Morris, Brown & Williamson, and R.J. Reynolds.
The state Court of Appeals has revived a class-action lawsuit against several cigarette makers for allegedly engaging in a price-fixing conspiracy.
Today's ruling overturned a 2006 decision by a Santa Fe County district court against New Mexico consumers who brought the damage lawsuit against tobacco companies, including Philip Morris Inc. and R.J. Reynolds Tobacco Co.
Stephen Brown was so opposed to New Mexico's ban on smoking in public places that he got himself cited for lighting up in a Catron County bar just minutes after the new law took effect.
He has been battling it ever since - so far to no avail. He lost the most recent round in the state Court of Appeals last week.
"I guess next is the (state) Supreme Court," Brown said.
Brown, a disabled veteran who worked as a cook before he retired, lives in Reserve in southwestern New Mexico. He recalls that he and his wife were the only customers at Uncle Bill's Bar when he lit up a cigarette just after midnight on June 15, 2007.
"I had to have my wife call the sheriff so he'd send a deputy down and issue me a ticket," Brown said. . . .
His legal argument is that the exemptions in the law - including for casinos, cigar bars, private clubs and designated hotel and motel rooms - violate a section of the state constitution that prohibits giving some persons or businesses rights or privileges not accorded to others.
"Our challenge is to the exemption scheme," said Brown's lawyer, Amavalise Jaramillo of Belen.
The argument hasn't swayed judges in district court - where Brown appealed from magistrate court - or in the Court of Appeals, which said on Sept. 16 that the exemptions are reasonable.
Jaramillo plans to ask the state Supreme Court to review the appeals court's decision. The high court could take the case or not.
New Mexico is subject to nationwide arbitration in a dispute over whether tobacco companies can reduce their payments to states under a 1998 settlement with the industry, the state Court of Appeals ruled Wednesday.
The decision was a setback for New Mexico which had wanted a state judge to decide the matter or have it arbitrated in the state.
The Court of Appeals concluded that the tobacco settlement required the payment dispute to be handled by a single, nationwide arbitration panel, which is to be made up of three former federal judges.
Navajo Nation President Joe Shirley Jr. Thursday vetoed the Commercial Tobacco Free Act that would have banned cigarette smoking and tobacco chewing in all public places on the Navajo Nation, including casinos.
In his veto message to Navajo Nation Council Speaker Lawrence T. Morgan, Shirley said that although it is indisputable and already widely known that commercial and smokeless tobacco use is harmful to individual users and those affected by secondhand smoke, he was concerned that the ban would infringe upon bona fide religious ceremonies.
The president said the ban also would affect the Nation’s ability to generate revenues through its gaming initiative, did not address concerns of due process and equal protection, and failed to adequately focus on underage smoking.
The law, he said, “is unreasonably broad, unenforceable, provides no administrative appeal process, puts the Nation at a competitive disadvantage, and fails to address the real problem on the Navajo Nation of underage smoking.”
The leader of the Navajo Nation on Thursday vetoed a measure that would have banned smoking and chewing tobacco in public places, resulting in strong criticism from lawmakers and health advocates.
Tribal President Joe Shirley Jr. said he rejected the measure because he feared it would infringe on religious ceremonies and inhibit gambling revenue. He also said the measure didn't focus enough on underage smoking.
Shirley said in his veto message that the law "is unreasonably broad, unenforceable, provides no administrative appeal process, puts the nation at a competitive disadvantage and fails to address the real problem on the Navajo Nation of underage smoking."
Tribal lawmakers approved the ban during their session last month in the Navajo capital of Window Rock, Ariz.
The president of the Navajo Nation has vetoed a ban on smoking and chewing tobacco in public places.
Tribal President Joe Shirley Jr. says he rejected the measure Thursday because he feared it would infringe on religious ceremonies and inhibit gambling revenue.
He also says the measure didn't focus enough on underage smoking.
Is protecting the health of the Navajo people endangering their livelihood? Robert Winter, CEO of the Navajo Nation Gaming Enterprise, says legislation imposing a ban on commercial tobacco use has that potential.
But Herman Shorty of Navajo Office of Environmental Health, a proponent of the tobacco ban, said Wednesday that Navajo laws and regulations are such "that even reasonable persons have to be protected from themselves because of vices, or safety issues that they may not be aware of the need for."
Representatives from both sides of the issue have presented Navajo Nation President Joe Shirley Jr. with documentation supporting their stances. The Navajo Nation Council approved the tobacco ban July 25, and Shirley's decision on whether to sign or veto the legislation is expected today . . .
During Council debate of the legislation, Bates proposed an amendment to exclude gaming facilities from the tobacco bill, however, the amendment failed and the bill passed 42-27.
The Navajo Nation Council has voted to ban smoking and chewing tobacco in public places on the vast reservation, including such outdoor venues as rodeos and fairs.
The council approved the ban on a vote of 42-27 Friday evening at the end of its weeklong summer session in the Navajo capital of Window Rock, Ariz. Navajo Nation President Joe Shirley Jr. has 10 days to decide whether to sign or veto the law once it reaches his desk.
The measure prohibits smoking and chewing tobacco in public buildings and shared public air space, but does not affect tobacco used in ceremonies for traditional or religious purposes on the reservation, an area about the size of West Virginia that encompasses parts of Arizona, New Mexico and Utah.
"I think the council made a wise decision that puts the health and well-being of the people first," the legislation's sponsor, Navajo Health and Social Services committee member Thomas Walker Jr., said Saturday. . . .
Walker said the legislation stemmed from his interest in the anti-tobacco work of the Southwest Navajo Tobacco Education Prevention Project, organized by Henderson and her brother, Peter Nez. The education project, backed by the tribe's Division of Health and a group of medicine men, the Hataalii Association Inc., pushed for the ban.
The Navajo Nation Council is to consider a measure next week during its summer session that would prohibit the use of commercial tobacco in public buildings and shared public air spaces, such as fairs and rodeos.
The measure would prohibit cigarettes and chewing tobacco, but not tobacco used in ceremonies for traditional or religious purposes.
The Southwest Navajo Tobacco Education Prevention Project is pushing the passage of the law, backed by the tribe's Division of Health and the Hataalii Association Inc., a group of medicine men.
"It's a healthy decision," said David Begay, a medicine man from Ganado, Ariz. " . . .
The Navajo Nation Gaming Enterprise opposes the measure
A Belen rodeo is bucking a decades-long relationship by banning tobacco advertising of any kind.
Casper Baca is the promoter of the Baca Rough Stock Rodeo Series that puts on more than 50 rodeos each year in Arizona, Colorado and New Mexico. His Belen rodeo that gets underway Saturday is the first one he'll stage that will be free from tobacco advertisements.
"I hope we set a precedent here that will lead to bigger and better things to come for the Buck Tobacco sponsorship program," says Baca.
Buck Tobacco is a nationwide movement to ban tobacco sponsorship at rodeos.
A statewide ban on indoor smoking at most businesses -- including bars -- is set to go into effect June 15, according to the state Legislature Web site. The law, House Bill 283, also prohibits smoking near entrances, windows and ventilation systems.
The change is bound to upset Las Cruces smokers, many of whom opposed a city attempt a few years ago to eliminate smoking in bars.
Valerie Valencia, 32, of Las Cruces, an occasional smoker, said she doesn't like the ban.
On March 3, The New Mexican published "Tobacco firm lobbied to defeat cigarette tax," regarding the Philip Morris (Altria) company's attempt to defeat a proposed increase in the state cigarette tax. Additionally, there is a proposed legislative effort to further restrict indoor smoking. There are solid and valid health benefits to these efforts.
As a former employee of Philip Morris USA and Liggett Vector Brands, I can testify that their interests lie only with their profitability. If anyone is under the illusion that these companies care that their products kill their consumers, think again.
Gov. Bill Richardson signed the Dee Johnson Indoor Air Act on Tuesday, banning smoking in almost all indoor workplaces in the state.
"I weighed all the pros and cons of the bill, including criticism that this might place an undue burden on small business," Richardson said. He said bans in other states have not had an adverse impact on bars and restaurants.
The bill bans smoking in virtually all indoor workplaces, as well as the entrances to those buildings. There are exemptions for casinos, bingo halls, private clubs, cigar bars, private residences not used for child care or adult health care, tobacco stores and manufacturers, limousines for private hire, enclosed areas in bars and restaurants used for private functions and sole-proprietor businesses with fewer than two employees.
The law, which begins June 15, also prohibits smoking near the entrances, windows and ventilation systems. Employers will be required to adopt, implement and post a written