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State ex rel Nixon v. American Tobacco Co.12/12/2000
Appeal From: Circuit Court of the City of St. Louis, Hon. Jimmie M. Edwards, Judge and the Circuit Court of Cole County, Hon. Thomas J. Brown III, Judge
Opinion Vote: AFFIRMED.
Wolff, J., and Lowenstein, Draper, Newton, Shaw and Farragut-Hemphill, Sp. JJ., concur. Price, C.J., Limbaugh, Covington, Holstein and Benton, JJ., not participating.
Opinion:
I.
These cases arise from various issues surrounding the settlement between the State of Missouri and various tobacco interests. Because the cases present similar legal issues, we consolidate the cases for purposes of opinion.
On May 12, 1997, the State of Missouri filed suit against several manufacturers of tobacco products seeking to obtain damages, restitution, civil penalties, punitive damages, declaratory and injunctive relief, and various other forms of relief in connection with the tobacco defendants' marketing and sales of products in Missouri.
On June 29, 1998, Attorney General Nixon entered into a contract for legal services with attorney Thomas Strong. The contract appointed Strong as "Lead Special Assistant Attorney General" solely for purposes of the tobacco litigation. Under the terms of the contract, Strong was required to provide all necessary financial and personnel resources that may be needed to bring the case to trial. No reimbursement was due Strong for expenses and costs beyond the compensation amounts provided under the contract.
On August 5, 1998, State Senator Peter Kinder and Mr. Rickey Jamerson filed a separate action against Attorney General Nixon and Strong in Cole County Circuit Court asserting standing as taxpayers. In their first amended petition, they alleged: (1) the compensation provisions of the fee contract were unlawful to the extent they require the State to pay funds not appropriated by the legislature; (2) that the hourly fee provisions lack mutuality and, therefore, are void and unenforceable; (3) the contingent fee provisions under the contract violate section 105.452 and, therefore, are unlawful; and (4) the payment of legal fees would constitute payment from funds at stake and would be unlawful. The petition sought both injunctive relief and a declaratory judgment that the contract was void. Upon dual motions for judgment on the pleadings, the trial court denied Kinder's and Jamerson's motion and granted Respondents' motion.
On October 2, 1998, several political subdivisions and not-for-profit agencies filed a motion to intervene in the original action in the Circuit Court of the City of St. Louis as a matter of right under Rule 52.12(a) or, in the alternative, seeking discretionary intervention under Rule 52.12(b). They sought actual damages for recovery of past and future unreimbursed costs resulting from care of indigent and Medicaid patients suffering from tobacco-related illnesses as well as punitive damages. The motion court found that the political subdivisions and agencies did not have a sufficient interest for intervention.
On November 23, 1998, Attorney General Nixon signed the Master Settlement Agreement (MSA) which resolved the dispute between the State of Missouri and the tobacco defendants. In addition to annual payments which may total some $6.7 billion over a 25-year period, the tobacco defendants are enjoined from utilizing some marketing methods that target minors and face restrictions regarding advertisement and sponsorship of sporting events, concerts and similar activities. They further agreed to quit advertising on traditional outdoor and transit billboards and refrain from distributing merchandise with their logos.
At various times after execution of
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