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UPDATE 2-US court reinstates Alaska smoker case vs Altria 

A U.S. appeals court on Monday reinstated an Alaska lawsuit against Altria Group Inc's (MO.N) Philip Morris USA by the survivor of a deceased smoker, saying her state product liability claims were not preempted by federal law and should have been tried in state court.

Altria and Philip Morris had argued the state claims could not go forward against them and Alaska Commercial Co, a local retailer, because a victory for plaintiffs Dolores Hunter and the estate of Benjamin G. Francis could result in a ban of cigarette sales in the state.

Francis, a native Alaskan, died at 52 of lung cancer in December of 2004, leaving a 10-year-old son and Hunter, his common law wife, his attorney Don Bauermeister said. Hunter was appointed the personal representative of his estate by a state court.

A lower court agreed the state claims were barred by "congressional intent not to ban the sale of cigarettes" and dismissed the case due to Hunter's failure to bring a claim under federal law, the opinion by the Ninth U.S. Circuit Court of Appeals said.

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