STATE v. AMERICAN TOBACCO CO.

No. 84265-0-I.

537 P.3d 303 (2023)

STATE of Washington, Respondent/Cross Appellant, v. AMERICAN TOBACCO CO., Defendant, Commonwealth Brands Inc.; Compania Industrial de Tabacos Monte Paz, SA; Daughters & Ryan, Inc.; Farmers Tobacco Co.; House of Prince A/S; ITG Brands, LLC, Japan Tobacco International USA, Inc.; King Maker Marketing Inc.; Kretek International; Liggett Group LLC; P.T. Djarum; Peter Stokkebye Tobaksfabrik A/S; Philip Morris USA, Inc.; R.J. Reynolds Tobacco Company; Reemtsma Cigarettenfabriken GMBH; Santa Fe Natural Tobacco Company; Scandinavian Tobacco Group Lane Limited; Sherman's 1400 Broadway NYC, LLC; Top Tobacco, LP; Von Eicken Group; and Wind River Tobacco Co. LLC, Appellants/Cross-Respondents.

Court of Appeals of Washington, Division 1.

Filed October 16, 2023.


Attorney(s) appearing for the Case

Logan Peppin , Attorney at Law, 999 3rd Ave. Ste. 3900, Seattle, WA, 98104-4076, Alexander Esq. Vitruk , Bakerhostetler, 999 3rd Ave. Ste. 3900, Seattle, WA, 98104-4076, Carey S. Busen , Evan M. Mannering , Elizabeth B. McCallum , Baker Law, 1050 Connecticut Avenue Nw., Suite 1100, Washington, DC, 20036, Bradley S. Keller , John Arthur Tondini , Byrnes Keller Cromwell LLP, 1000 2nd Ave. Ste. 3800, Seattle, WA, 98104-1062, Vanessa Soriano Power , Stoel Rives LLP, 600 University St. Ste. 3600, Seattle, WA, 98101-3197, Jenna Marie Esq. Poligo , Attorney at Law, 600 University St. Ste. 3600, Seattle, WA, 98101-4109, Mark A. Loyd , DENTONS BINGHAM GREENBAUM LLP, 3500 Pnc Tower, 101 South Fifth Street, Louisville, KY, 40202, Andrea Lauren Russow Nichols , Dentons Bingham Greenbaum LLP, 300 West Vine Street, Suite 1200, Lexington, KY, 40507, Elli Leibenstein , Gregory Ostfeld , Chicago, IL, 60601, Warren Joseph Rheaume , James Condon Grant , Davis Wright Tremaine LLP, 920 5th Ave. Ste. 3300, Seattle, WA, 98104-1610, Manvin Mayell , Alexander Shaknes , ARNOLD & PORTER KA YE SCHOLER LLP, 250 West 55th Street, New York, NY, 10019, for Appellant/Cross-Respondent.

Rene David Tomisser , Office of the Attorney General, 7141 Cleanwater Dr. Sw., Tumwater, WA, 98501-6503, Joshua Weissman , WA Atty. Generals Office, P.O. Box 40123, Olympia, WA, 98504-0123, Complex Litigation Division A.g. Office, Attorney at Law, P.O. Box 40111, Olympia, WA, 98504-0111, for Respondent/Cross-Appellant.

Chloe Thompson Villagomez , Foster Garvey PC, 1111 3rd Ave. Ste. 3000, Seattle, WA, 98101-3296, for Amicus Curiae on behalf of Quileute Tribe.

Timothy W. Woolsey , Suquamish Tribe, P.O. Box 498, Suquamish, WA, 98392-0498, Devon Joseph Tiam , Port Madison Enterprises, 15347 Suquamish Way Ne., Suquamish, WA, 98392-9649, for Amicus Curiae on behalf of Suquamish Tribe.

Earle David LeesIII , Attorney at Law, 80 N. Tribal Center Rd., Skokomish Nation, WA, 98584-9748, for Amicus Curiae on behalf of Skokomish Indian Tribe.

Kevin R. Lyon , Squaxin Island Legal Dept., 3711 Se. Old Olympic Hwy., Shelton, WA, 98584-7734, for Amicus Curiae on behalf of The Squaxin Island Tribe.

Lorraine Anne Parlange , Kalispel Tribe of Indians, 934 S. Garfield Rd., Airway Heights, WA, 99001-9030, for Amicus Curiae on behalf of Kalispel Tribe of Indians.

Rachel Sage , Swinomish Indian Tribal Community, 11404 Moorage Way, La Conner, WA, 98257-9450, for Amicus Curiae on behalf of Swinomish Indian Tribal Community.

Lori Bruner , Quinault Indian Nation, P.O. Box 613, Taholah, WA, 98587-0613, for Amicus Curiae on behalf of The Quinault Indian Nation.

Rachel Sage , Swinomish Indian Tribal Community, 11404 Moorage Way, La Conner, WA, 98257-9450, Lori Bruner , Quinault Indian Nation, P.O. Box 613, Taholah, WA, 98587-0613, Timothy W. Woolsey , Suquamish Tribe, P.O. Box 498, Suquamish, WA, 98392-0498, Devon Joseph Tiam , Port Madison Enterprises, 15347 Suquamish Way Ne., Suquamish, WA, 98392-9649, Harold Chesnin , Attorney at Law, 3201 14th Ave. S., Seattle, WA, 98144-6314, Kevin R. Lyon , Squaxin Island Legal Dept., 3711 Se. Old Olympic Hwy, Shelton, WA, 98584-7734, Earle David LeesIII , Attorney at Law, 80 N. Tribal Center Rd., Skokomish Nation, WA, 98584-9748, Lorraine Anne Parlange , Kalispel Tribe of Indians, 934 S. Garfield Rd., Airway Heights, WA, 99001-9030, for Counsel for Other Parties.


PUBLISHED OPINION

¶1 The United States Supreme Court has repeatedly recognized Indian tribal governments' inherent sovereign power to tax.1 That inherent sovereign power is at the heart of this case.

¶2 In the 1990s, several states, including Washington, sued major cigarette manufacturers...

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