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STATE v. PHILIP MORRIS USA, INC.

No. COA07-409.

666 S.E.2d 783 (2008)

STATE of North Carolina, Plaintiff, v. PHILIP MORRIS USA, INC.; R.J. Reynolds Tobacco Company; Brown & Williamson Tobacco Company, Individually and as successor by merger to The American Tobacco Company; and Lorillard Tobacco Company, Defendants.

Court of Appeals of North Carolina.

October 7, 2008.

Attorney(s) appearing for the Case

Attorney General Roy Cooper, by Special Deputy Attorneys General Buren R. Shields, III and Melissa L. Trippe, for plaintiff-appellant.

Manning, Fulton & Skinner, P.A., by Michael T. Medford, Raleigh and Winston & Strawn, LLP, by Thomas J. Frederick, Chicago, IL, for defendant-appellee Philip Morris USA, Inc.

Womble Carlyle Sandridge & Rice, PLLC, by Burley B. Mitchell, Jr. and W. David Edwards, Winston-Salem, and Kirkland & Ellis LLP, by Stephen R. Patton, Chicago, IL and Douglas G. Smith, for defendant-appellee R.J. Reynolds Tobacco Company.

Brooks, Pierce, McLendon, Humphrey & Leonard, LLP, by Jim W. Phillips, Jr., Greensboro and Weil, Gotshal & Manges LLP, by Penny Reid, New York, NY, for defendant-appellee Lorillard Tobacco Company.

Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P., by Clifton L. Brinson, Raleigh and Howrey, LLP, by Robert J. Brookhiser and Elizabeth B. McCallum, Washington, DC, for defendants-appellees Subsequent Participating Manufacturers.

GEER, Judge.

This appeal arises out of the Master Settlement Agreement ("MSA") entered into by most of the states and various tobacco manufacturers to resolve tobacco-related litigation. The State appeals from the Business Court's order compelling arbitration, arguing that the order is barred by sovereign immunity, interferes with prosecutorial discretion, and is inconsistent with the MSA. Forty-seven other jurisdictions have already addressed identical litigation...

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