ASSOCIATION OF WA PUBLIC HOSP. v. PHILIP MORRIS

No. 00-35117.

241 F.3d 696 (2001)

ASSOCIATION OF WASHINGTON PUBLIC HOSPITAL DISTRICTS, a Washington unincorporated association; Adams County Public Hospital District No. 2; Adams County Public Hospital District No. 3; Affiliated Health Services, a general partnership of Skagit County Public Hospital District No. 1 and Skagit & Whatcom Counties Public Hospital District No. 304; Chelan County Public Hospital District No. 2; Clallam County Public Hospital District No. 1; Clallam County Public Hospital District No. 2; Douglas, Grant, Lincoln, Okanogan Counties Public Hospital District No. 6; Ferry County Public Hospital District No. 1; Garfield County Public Hospital District; Grant County Public Hospital District No. 1; Grant County Public Hospital District No. 2; Grant County Public Hospital District No. 3; Grays Harbor County Public Hospital District No. 1; Jefferson County Public Hospital District No. 2; Kennewick Public Hospital District; King County Public Hospital District No. 1; King County Public Hospital District No. 2; Kittitas County Public Hospital District No. 1; Lewis County Public Hospital District No. 1; Mason County Public Hospital District No. 1; Okanogan and Douglas Counties Public Hospital District No. 1; Okanogan County Public Hospital District No. 3; Okanogan County Public Hospital District No. 4; Pacific County Public Hospital District No. 2; Pacific County Public Hospital District No. 3; Pend Oreille County Public Hospital District No. 1; Prosser Public Hospital District; Skagit County Public Hospital District No. 1; Skagit County Public Hospital District No. 2; Skagit and Whatcom Counties Public Hospital District No. 304; Snohomish County Public Hospital District No. 1; Snohomish County Public Hospital District No. 2; Snohomish County Public Hospital District No. 3; Whitman County Public Hospital District No. 1-A; Whitman County Public Hospital District No. 3, Plaintiffs-Appellants, v. PHILIP MORRIS INCORPORATED; RJ Reynolds Tobacco Company; Brown & Williamson Tobacco Corporation; British American Tobacco Plc; B.A.T. Industries PLC; British American Tobacco Investments Limited, formerly known as British-American Tobacco Company Limited; Lorillard Tobacco Company; Liggett Group, Inc.; Liggett & Myers, Inc.; United States Tobacco Company; The Tobacco Institute, Inc.; The Council for Tobacco Research — USA, Inc.; Smokeless Tobacco Council, Inc.; Hill & Knowlton, Inc.; Unknown Corporations A-Z, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Filed February 22, 2001.


Attorney(s) appearing for the Case

Michael K. Vaska (argued), Bradley J. Berg, Steven G. Jones, and Chryssa V. Deliganis, Foster Pepper & Shefelman PLLC, Seattle, Washington, for the plaintiffs-appellants.

Herbert M. Wachtell (argued), Wachtell, Lipton, Rosen & Katz, New York, New York, and John W. Phillips, Leonard J. Feldman, and Judith H. Ramseyer, Heller Ehrman White & McAuliffe LLP, Seattle, Washington, for defendant-appellee Philip Morris Incorporated; Bradley S. Keller, Byrnes & Keller, LLP, Seattle, Washington, and H. Joseph Escher, III and Peter J. Busch, Howard Rice Nemerovski Canady Falk & Rabkin, San Francisco, California, for defendant-appellee R.J. Reynolds Tobacco; John A. Tondini, Byrnes & Keller, LLP, Seattle, Washington, and Jeffrey Davidson and Tony L. Richardson, Kirkland & Ellis, Los Angeles, California, for defendant-appellee Brown & Williamson Tobacco Corp.; Christopher W. Tompkins, Betts Patterson & Mines, P.S., Seattle, Washington, and Jeffrey S. Nelson and Tina M. Schaefer, Shook, Hardy & Bacon L.L.P., Kansas City, Missouri, for defendant-appellee Lorillard Tobacco Company; Thomas R. Merrick, Bullivant, Houser, Pendergrass & Hoffman, Seattle, Washington, for defendant-appellee British-American Tobacco Co., Ltd.; Delber D. Miller and Heidi Bateman, Miller Bateman LLP, Seattle, Washington, for defendant-appellee United States Tobacco Company; John D. Wilson and David M. Jacobi, Wilson Smith Cochran & Dickerson, Seattle, Washington, for defendant-appellee Smokeless Tobacco Council, Inc.; James R. Murray and Franklin D. Cordell, Gordon Murray Tilden, Seattle, Washington, for defendant-appellee The Tobacco Institute, Inc.; James H. Jordan, Jr., Miller, Nash, Wiener, Hager & Carlsen, Seattle, Washington, for defendant-appellee The Council for Tobacco Research — U.S.A., Inc.; Thomas J. Brewer and Steven T. Seward, Wickwire, Green, Crosby, Brewer & Seward, Seattle, Washington, for defendant-appellee Hill & Knowlton, Inc.

Before: Robert BOOCHEVER, Diarmuid F. O'SCANNLAIN and A. Wallace TASHIMA, Circuit Judges.


Argued and Submitted December 14, 2000 — San Francisco, California

O'SCANNLAIN, Circuit Judge:

We must decide whether public hospital districts may bring federal and state claims against tobacco firms to recover their unreimbursed costs for treating patients suffering from tobacco-related illnesses.

I

The Association of Washington Public Hospital Districts, along with the Association's individual member districts (collectively, "Hospital...

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