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• Vt. Supreme Court orders arbitration in state complaint 

A dispute over how much the state of Vermont gets under a 1998 settlement with tobacco companies should be resolved through arbitration, not the courts, the Vermont Supreme Court ruled Friday.

In a victory for the tobacco companies, the court -- upholding a Chittenden County court's ruling -- said an arbitration clause in the 1998 agreement between them and 52 states and territories covers Vermont's complaint about payments and that it should be resolved through arbitration.

"We wanted to litigate it here in Vermont, and the court said `No, you essentially agreed to arbitration under the agreement,'" said state Attorney General William Sorrell. . . .

The tobacco companies contend that none of the states diligently enforced their "qualifying statutes." . . .

"In all likelihood, there'll either be a national arbitration proceeding or a bunch of states will combine and demand the arbibtrations to go forward. We'll be one that says we want it convened as soon as possible," Sorrell said.

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