May 26, 2003

Tobacco Hoopla

An appeals court Wednesday reversed a $145 billion jury award to plaintiffs in a tobacco industry lawsuit, for a variety of legitimate reasons, not least among them the grossly unethical practices by the plaintiffs' attorney. As George Will states in his syndicated column :

the appeals court did not confine itself Wednesday to overturning the class-action $145 billion judgment against the tobacco industry. The court also roasted the plaintiffs' attorney. But his behavior, although contemptible, is congruent with the increasingly cynical government policy of keeping tobacco companies prosperous enough to be worth looting.

Now I've been a non-smoker for 23 years now, and I don't really have a dog in this fight except as a taxpayer, but this case demonstrates the potential of trial lawyers and a malleable jury to literally bankrupt a legitimate industry. The story of the malpractice by Rosenblatt, the attorney in this case, is stunning.

A certain segment of our society, (a similar segment it seems, that in other matters decries government involvement in our personal, private behaviors) demonizes tobacco companies for daring to make a profit selling a legal product to willing consumers. At the same time state governments are politically addicted to the revenues, both in taxes and lawsuit settlement dollars that a prosperous tobacco industry generates. The politicians are desperate to make sure that the lawyers don't kill the Golden Goose. It's amusing and sickening at the same time.

This WSJ piece nicely summarizes the facts of the case, and this Jacob Sullum article adds an additional angle not mentioned by Will or the WSJ. You see, even though they lost on appeal, the plaintiffs still receive a cool $700 million. Sullum explains it, but it's about what you'd expect when trial lawyers, politicians, and scared businessmen get together to carve up a couple of hundred billion dollars, all in the interest of righting wrongs, serving justice, and protecting us common citizens and, you know.... the children.

Posted by dan at May 26, 2003 10:10 PM