JUDGEMENT STAY: Tobacco Companies file for Emergency Stay of Judgement

August 21, 2006 11:15 pm by Gene Borio

The tobacco defendants have filed for an emergency stay of Judge Kessler’s August 17, 2006 judgement “pending resolution of Defendants’ Motion for Stay of Judgment Pending Appeal”

It sounds awkward, but the defendants in their Memorandum stated that they “will file within thirty days of this Court’s judgment or within any other time frame the Court requires. We file this motion in an abundance of caution to ensure that the status quo is preserved while we prepare a motion for a stay pending appeal that specifically references the Court’s analysis in its 1653-page opinion.”

“A court should grant a stay of judgment pending appeal when the appeal will raise serious legal questions that are fair grounds for further litigation and when the balance of the equities, including the injury to the defendant and the public interest, favors a stay.

“Defendants respectfully submit that they should be given sufficient time to analyze the decision and present to this Court a thorough pleading explaining why the requirements of Rule 62 are met here and why the judgment should therefore be stayed pending appeal.”

Texts follow of:

Defense Motion for an Emergency Stay of Judgement

and

Memo Supporting Defense Motion for Emergency Stay

**———————————————————

Defense Motion for an Emergency Stay of Judgement

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

UNITED STATES OF AMERICA,

Plaintiff,

And

TOBACCO-FREE KIDS ACTION FUND, et al.,

Plaintiff-Intervenors,

v.

PHILIP MORRIS USA INC. (f/k/a PHILIP MORRIS INCORPORATED), et al.,

Defendants.

DEFENDANTS’ EMERGENCY MOTION FOR STAY OF JUDGMENT PENDING RESOLUTION OF DEFENDANTS’ MOTION FOR STAY OF JUDGMENT PENDING APPEAL

Civil Action No. 99-CV-2496 (GK)

Next Scheduled Court Appearance: None

Defendants respectfully move this Court for a stay of the judgment entered in the abovecaptioned matter on August 17, 2006, pending resolution of Defendants’ Motion for Stay of Judgment Pending Appeal for the reasons stated in the accompanying memorandum of law.1

DATED: August 18, 2006 Respectfully submitted,

/s/ Matthew A. Campbell for _______________

Timothy M. Broas (D.C. Bar No. 391145)

WINSTON & STRAWN LLP

1700 K Street, N.W.

1 Pursuant to Local Civil Rule 7(m), counsel for Defendants conferred with counsel for Plaintiff regarding this motion, and Plaintiff opposes the motion.

Washington, D.C. 20006-3817

Telephone: (202) 282-5000

Fax: (202) 282-5100

Dan K. Webb

Thomas J. Frederick

WINSTON & STRAWN LLP

35 West Wacker Drive

Chicago, Illinois 60601-9703

Telephone: (312) 558-5600

Fax: (312) 558-5700

Theodore V. Wells, Jr. (D.C. Bar No. 468934)

James L. Brochin (D.C. Bar No. 455456)

PAUL, WEISS, RIFKIND, WHARTON &

GARRISON LLP

1285 Avenue of the Americas

New York, New York 10019-6064

Telephone: (212) 373-3000

Fax: (212) 757-3990

Attorneys for Defendants

Altria Group Inc. and Philip Morris USA Inc.

/s/ Matthew A. Campbell for _______________

Robert F. McDermott (D.C. Bar No. 261164)

Peter J. Biersteker (D.C. Bar No. 358108)

JONES DAY

51 Louisiana Avenue, N. W.

Washington, D.C. 20001-2113

Telephone: (202) 879-3939

Fax: (202) 626-1700

Robert C. Weber

Paul G. Crist

JONES DAY

North Point

901 Lakeside Avenue

Cleveland, Ohio 44114-1190

Telephone: (216) 586-3939

Fax: (216) 579-0212

Attorneys for Defendant

R. J. Reynolds Tobacco Company

/s/ Matthew A. Campbell for _______________

David E. Mendelson (D.C. Bar No. 471863)

KlRKLAND & ELLIS LLP

655 15th Street, N.W., Suite 1200

Washington, D.C. 20005

Telephone: (202) 879-5000

Fax: (202) 879-5200

David M. Bernick

Stephen R. Patton

Renee D. Smith

KIRKLAND & ELLIS LLP

200 East Randolph Drive, Suite 5900

Chicago, Illinois 60601

Telephone: (312) 861-2000

Fax: (312) 861-2200

Attorneys for Defendant

Brown & Williamson Tobacco Holdings, Inc.

/s/ Matthew A. Campbell for _______________

Edward C. Schmidt (D.C. Bar No. 199315)

Matthew D. Schwartz (D.C. Bar No. 436619)

THOMPSON COBURN LLP

1909 K Street, N.W.

Suite 600

Washington, D.C. 20006

Telephone: (202) 585-6900

Fax: (314) 552-7597

J. William Newbold

Michael B. Minton

THOMPSON COBURN LLP

One US Bank Plaza, Suite 3500

St. Louis, Missouri 63101-1693

Telephone: (314) 552-6000

Fax: (314) 552-7597

Gene E. Voigts

Richard L. Gray

SHOOK, HARDY & BACON LLP

2555 Grand Blvd.

Kansas City, Missouri 64108-2613

Telephone: (816) 474-6550

Fax: (816) 421-2708

Attorneys for Defendant

Lorillard Tobacco Company

/s/ Matthew A. Campbell for _______________

Bruce G. Sheffler

David L. Wallace

CHADBOURNE & PARKE LLP

30 Rockefeller Plaza, 34th Floor

New York, New York 10112-0219

Telephone: (212) 408-5100

Attorneys for Defendant

British American Tobacco (Investments)

Limited (f/k/a British-American Tobacco

Company Limited)

/s/ Matthew A. Campbell for _______________

Steven Klugman

Steven S. Michaels

DEBEVOISE & PLIMPTON LLP

9 1 9 Third Avenue

New York, New York 10022

Telephone: (212) 909-6000

J. William Newbold

Michael B. Minton

Jason A. Wheeler

THOMPSON COBURN

One US Bank Plaza, Suite 3500

St. Louis, Missouri 63101-1693

Telephone: (314) 552-6000

Attorneys for Defendant

The Council for Tobacco Research-U.S.A.,

Inc.

/s/ Matthew A. Campbell for _______________

James A. Goold

COVINGTON & BURLING

120 1 Pennsylvania Avenue, N. W.

Washington, D.C. 20004-2401

Telephone: (202) 662-6000

Attorneys for Defendant

The Tobacco Institute, Inc.

/s/ Matthew A. Campbell for _______________

Peter A. Woolson (D.C. Bar No. 04448)

ROBINSON WOOLSON, P.A.

217 East Redwood Street

Suite 1500

Baltimore, MD 21202

Telephone: (410) 625-0000

Fax: (410) 625-0201

/s/ Matthew A. Campbell for _______________

Aaron H. Marks

Leonard A. Feiwus

(Attorneys admitted pro hac vice)

KASOWITZ, BENSON, TORRES &

FRIEDMAN LLP

1633 Broadway

New York, New York 10019-6799

Telephone: (212) 506-1700

Fax: (212) 506-1800

Attorneys for Defendant

Liggett Group Inc.

**———————————————————

Memo Supporting Defense Motion for Emergency Stay

1

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF COLUMBIA

UNITED STATES OF AMERICA,

Plaintiff,

And

TOBACCO-FREE KIDS ACTION FUND, Civil Action No. 99-CV-2496 (GK)

et al.,

Plaintiff-Intervenors, Next Scheduled Court Appearance: None

v.

PHILIP MORRIS USA INC. (f/k/a

PHILIP MORRIS INCORPORATED), et

al.,

Defendants.

DEFENDANTS’ MEMORANDUM OF LAW IN SUPPORT OF EMERGENCY MOTION FOR STAY OF JUDGMENT PENDING RESOLUTION OF DEFENDANTS’ MOTION FOR STAY OF JUDGMENT PENDING APPEAL

Defendants request that this Court immediately stay the judgment entered on August 17, 2006 in all respects pending resolution of a Motion to Stay the Judgment Pending Appeal, which defendants will file within thirty days of this Court’s judgment or within any other time frame the Court requires. We file this motion in an abundance of caution to ensure that the status quo is preserved while we prepare a motion for a stay pending appeal that specifically references the Court’s analysis in its 1653-page opinion.

On August 15, 2006, this Court issued a 1653-page decision analyzing in detail the evidentiary record and the legal arguments of the parties and ruling that in favor of the “Plaintiff, the United States of America, on Counts 3 and 4 of the Complaint, imposing liability under

2

Sections 1962(c) and (d) of the Racketeer Influenced and Corrupt Organizations Chapter of Title 18 of the United States Criminal Code.” Order #1015, United States v. Philip Morris USA, Inc., Civ. A. No. 99-2496, at 1 (D.D.C. Aug. 17, 2006). Pursuant to Fed. R. Civ. P. 62, this Court has the power to suspend the ordered injunctive relief pending appeal. A court should grant a stay of judgment pending appeal when the appeal will raise serious legal questions that are fair grounds for further litigation and when the balance of the equities, including the injury to the defendant and the public interest, favors a stay. See Chamber of Commerce v. Reich, 897 F.Supp. 570, 584-85 (D.D.C. 1995).

Defendants respectfully submit that they should be given sufficient time to analyze the decision and present to this Court a thorough pleading explaining why the requirements of Rule 62 are met here and why the judgment should therefore be stayed pending appeal. So as not to compromise our ability to do that, we respectfully request that the Court stay the judgment pending the filing and resolution of such motion. See, e.g., Chamber of Commerce v. Reich, 897 F.Supp. 570, 584-85 (D.D.C. 1995).

DATED: August 18, 2006 Respectfully submitted,

/s/ Matthew A. Campbell for _______________

Timothy M. Broas (D.C. Bar No. 391145)

WINSTON & STRAWN LLP

1700 K Street, N.W.

Washington, D.C. 20006-3817

Telephone: (202) 282-5000

Fax: (202) 282-5100

Dan K. Webb

Thomas J. Frederick

WINSTON & STRAWN LLP

35 West Wacker Drive

Chicago, Illinois 60601-9703

Telephone: (312) 558-5600

3

Fax: (312) 558-5700

Theodore V. Wells, Jr. (D.C. Bar No. 468934)

James L. Brochin (D.C. Bar No. 455456)

PAUL, WEISS, RIFKIND, WHARTON &

GARRISON LLP

1285 Avenue of the Americas

New York, New York 10019-6064

Telephone: (212) 373-3000

Fax: (212) 757-3990

Attorneys for Defendants

Altria Group Inc. and Philip Morris USA Inc.

/s/ Matthew A. Campbell for _______________

Robert F. McDermott (D.C. Bar No. 261164)

Peter J. Biersteker (D.C. Bar No. 358108)

JONES DAY

51 Louisiana Avenue, N. W.

Washington, D.C. 20001-2113

Telephone: (202) 879-3939

Fax: (202) 626-1700

Robert C. Weber

Paul G. Crist

JONES DAY

North Point

901 Lakeside Avenue

Cleveland, Ohio 44114-1190

Telephone: (216) 586-3939

Fax: (216) 579-0212

Attorneys for Defendant

R. J. Reynolds Tobacco Company

/s/ Matthew A. Campbell for _______________

David E. Mendelson (D.C. Bar No. 471863)

KlRKLAND & ELLIS LLP

655 15th Street, N.W., Suite 1200

Washington, D.C. 20005

Telephone: (202) 879-5000

Fax: (202) 879-5200

4

David M. Bernick

Stephen R. Patton

Renee D. Smith

KIRKLAND & ELLIS LLP

200 East Randolph Drive, Suite 5900

Chicago, Illinois 60601

Telephone: (312) 861-2000

Fax: (312) 861-2200

Attorneys for Defendant

Brown & Williamson Tobacco Holdings, Inc.

/s/ Matthew A. Campbell for _______________

Edward C. Schmidt (D.C. Bar No. 199315)

Matthew D. Schwartz (D.C. Bar No. 436619)

THOMPSON COBURN LLP

1909 K Street, N.W.

Suite 600

Washington, D.C. 20006

Telephone: (202) 585-6900

Fax: (314) 552-7597

J. William Newbold

Michael B. Minton

THOMPSON COBURN LLP

One US Bank Plaza, Suite 3500

St. Louis, Missouri 63101-1693

Telephone: (314) 552-6000

Fax: (314) 552-7597

Gene E. Voigts

Richard L. Gray

SHOOK, HARDY & BACON LLP

2555 Grand Blvd.

Kansas City, Missouri 64108-2613

Telephone: (816) 474-6550

Fax: (816) 421-2708

Attorneys for Defendant

Lorillard Tobacco Company

5

/s/ Matthew A. Campbell for _______________

Bruce G. Sheffler

David L. Wallace

CHADBOURNE & PARKE LLP

30 Rockefeller Plaza, 34th Floor

New York, New York 10112-0219

Telephone: (212) 408-5100

Attorneys for Defendant

British American Tobacco (Investments)

Limited (f/k/a British-American Tobacco

Company Limited)

/s/ Matthew A. Campbell for _______________

Steven Klugman

Steven S. Michaels

DEBEVOISE & PLIMPTON LLP

9 1 9 Third Avenue

New York, New York 10022

Telephone: (212) 909-6000

J. William Newbold

Michael B. Minton

Jason A. Wheeler

THOMPSON COBURN

One US Bank Plaza, Suite 3500

St. Louis, Missouri 63101-1693

Telephone: (314) 552-6000

Attorneys for Defendant

The Council for Tobacco Research-U.S.A.,

Inc.

/s/ Matthew A. Campbell for _______________

James A. Goold

COVINGTON & BURLING

120 1 Pennsylvania Avenue, N. W.

Washington, D.C. 20004-2401

Telephone: (202) 662-6000

Attorneys for Defendant

The Tobacco Institute, Inc.

6

/s/ Matthew A. Campbell for _______________

Peter A. Woolson (D.C. Bar No. 04448)

ROBINSON WOOLSON, P.A.

217 East Redwood Street

Suite 1500

Baltimore, MD 21202

Telephone: (410) 625-0000

Fax: (410) 625-0201

/s/ Matthew A. Campbell for _______________

Aaron H. Marks

Leonard A. Feiwus

(Attorneys admitted pro hac vice)

KASOWITZ, BENSON, TORRES &

FRIEDMAN LLP

1633 Broadway

New York, New York 10019-6799

Telephone: (212) 506-1700

Fax: (212) 506-1800

Attorneys for Defendant

Liggett Group Inc.

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