ILNews

Court explores definition of tobacco manufacturing

Michael W. Hoskins
January 1, 2007
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
 

The Indiana Court of Appeals today delved into what it means to manufacture cigarettes under state law.

A unanimous 30-page decision came in Steve Carter in his role as Attorney General v. Carolina Tobacco Company, Inc. http://www.in.gov/judiciary/opinions/pdf/09170702jgb.pdf,No. 49A04-0503-CV-151, affirming a lower court decision that the state attorney general's office improperly refused to include an Indiana tobacco company in a yearly directory of manufacturers allowed to sell cigarettes in the state.

The Marion County suit involves the "Roger" brand of cigarettes that began being distributed in the mid-1990s in Eastern Europe, but came to the United States in August 1999 with the creation of Oregon-based CTC - though the company's registered agency for service of proof is Indianapolis. These cigarettes were produced outside the country and then distributed by CTC here, and the Indiana Department of Revenue determined that Roger brand sales from 1999 to 2002 amounted to about 283 million cigarettes sold in the state.

But based on the tobacco settlement agreements in the late 1990s, certain manufacturers were included on a list compiled by state attorney general offices and CTC was not included. Both sides debated whether state statutes adequately defined "manufacture," and Carter's office equated the term "manufacture" with "fabricate" - only an entity physically assembling or fabricating cigarettes could be dubbed a tobacco product manufacturer and included on the list.

CTC debated this interpretation for the 2003 list, and eventually sued for not being included. Marion Circuit Judge Ted Sosin granted a preliminary injunction against the attorney general's office from enforcing the rules that would mean pulling Roger brand cigarettes from sales locations.

"Based on the factual evidence in this case, the Court concludes that, at all times since its founding in 1999, CTC has directly manufactured Roger cigarettes," Judge Sosin found as a conclusion of law. "The Court, therefore, concludes that CTC has been and continues to be the tobacco product manufacturer of Roger cigarettes."

On appeal, Chief Judge John Baker and Judges Mark Bailey and Nancy Vaidik determined the court did not err in ruling against the attorney general's office. It noted that other Indiana statutes are more broadly interpreted, citing Indiana's product liability statute that defines manufacturer as a "person or entity who designs, assembles, fabricates, produces, constructs, or otherwise prepares a product or a component part of a product before the sale of the product to a user or consumer."

"In our view, the totality of the evidence presented at trial establishes that OAG's decision to equate 'manufacture' with 'fabricate' for purposes of considering CTC's request for inclusion in the Directory was arbitrary and, therefore, unreasonable," Chief Judge Baker wrote. "Therefore, the trial court's determination... was proper."
ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
2015 Distinguished Barrister &
Up and Coming Lawyer Reception

Tuesday, May 5, 2015 • 4:30 - 7:00 pm
Learn More


ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. I'm not sure what's more depressing: the fact that people would pay $35,000 per year to attend an unaccredited law school, or the fact that the same people "are hanging in there and willing to follow the dean’s lead in going forward" after the same school fails to gain accreditation, rendering their $70,000 and counting education worthless. Maybe it's a good thing these people can't sit for the bar.

  2. Such is not uncommon on law school startups. Students and faculty should tap Bruce Green, city attorney of Lufkin, Texas. He led a group of studnets and faculty and sued the ABA as a law student. He knows the ropes, has advised other law school startups. Very astute and principled attorney of unpopular clients, at least in his past, before Lufkin tapped him to run their show.

  3. Not that having the appellate records on Odyssey won't be welcome or useful, but I would rather they first bring in the stray counties that aren't yet connected on the trial court level.

  4. Aristotle said 350 bc: "The most hated sort, and with the greatest reason, is usury, which makes a gain out of money itself, and not from the natural object of it. For money was intended to be used in exchange, but not to increase at interest. And this term interest, which means the birth of money from money, is applied to the breeding of money because the offspring resembles the parent. Wherefore of an modes of getting wealth this is the most unnatural.

  5. Oh yes, lifetime tenure. The Founders gave that to the federal judges .... at that time no federal district courts existed .... so we are talking the Supreme Court justices only in context ....so that they could rule against traditional marriage and for the other pet projects of the sixties generation. Right. Hmmmm, but I must admit, there is something from that time frame that seems to recommend itself in this context ..... on yes, from a document the Founders penned in 1776: " He has refused his Assent to Laws, the most wholesome and necessary for the public good."

ADVERTISEMENT