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STATE OF NY v. PHILIP MORRIS

30 A.D.3d 26 (2006)

813 N.Y.S.2d 71

STATE OF NEW YORK et al., Respondents, v. PHILIP MORRIS INCORPORATED et al., Defendants. COMMONWEALTH BRANDS, INC., et al., Nonparty Appellants.

Appellate Division of the Supreme Court of the State of New York, First Department.

April 6, 2006.

Attorney(s) appearing for the Case

Leader & Berkon LLP, New York City (Joshua K. Leader and Joseph G. Colao of counsel), for appellants.

Eliot Spitzer, Attorney General, New York City (David M. Nocenti, Caitlin J. Halligan, Daniel Smirlock and Richard Dearing of counsel), for respondents.

DLA Piper Rudnick Gray Cary US LLP, New York City (Alexander Shaknes of counsel), for Philip Morris USA Inc., amicus curiae.

Kirkland & Ellis LLP, New York City (Peter A. Bellacosa of counsel), for R.J. Reynolds Tobacco Company and another, amici curiae.

Brooks, Pierce, McLendon, Humphrey & Leonard LLP, Greensboro, North Carolina (Andrew J. Haile of counsel), for Lorillard Tobacco Company, amicus curiae.

Robert J. Spagnoletti, Attorney General, District of Columbia (Bennett Rushkoff and Edward E. Schwab of counsel), for settling states, amici curiae.

MARLOW, J.P., NARDELLI and WILLIAMS, JJ., concur.

OPINION OF THE COURT

SWEENY, J.

The case before us arises out of the ultimate settlement of a lawsuit brought by numerous governmental entities against major tobacco producers to recoup health-care costs associated with tobacco use. The negotiations leading up to this settlement were extensive and exhaustive. The result was a written agreement between the states and the tobacco companies, called the "Master...

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