N.C. judge orders Phase II money released from tobacco trust fund
Friday, September 30th, 2005
By Chris Fitzsimon
Associated Press GREENSBORO, N.C. - A North Carolina judge said he plans to release $318 million to tobacco growers in 14 states that cigarette-makers paid into a trust fund as part of 1998’s multibillion-dollar anti-smoking settlement.
The tobacco companies had fought unsuccessfully in North Carolina courts to get refunds of the money, arguing that the compensation to farmers was overriden by last year’s passage of a $10 billion federal buyout of tobacco quotas.
"It is my intention to go ahead and release the money that’s already in the trust," North Carolina Business Court Judge Ben Tennille told attorneys in the case Thursday. "I don’t see any reason to delay."
The money represents payments by cigarette makers for the first three quarters of 2004.
The companies continue to dispute whether they should make a final payment of $106 million that was due for the fourth quarter of 2004.
The tobacco companies argue that they have begun paying more than $417 million so far this year for the quota buyout, so they should not have to make the final payment that was due last December.
"The fourth-quarter payment was made in 2005. We’ve already made a (buyout) payment in 2005. So we’re entitled to an offset," said Larry Sitton, an attorney for industry leader Philip Morris USA. (more…)
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