News

Elizabeth McCallum Comments on Battle over Liability for Florida Tobacco Settlement

News / June 9, 2020

Partner Elizabeth McCallum is quoted in an article published June 9, 2020, by Law.com. The article, “R.J. Reynolds Wants Out of Historic Tobacco Settlement with Florida Government. Who Will Foot $100 Million Bill?,” reports on arguments presented in the Fourth District Court of Appeals regarding R.J. Reynolds’ obligation to continuing to pay millions of dollars a year for cigarette brands it no longer owns.

McCallum noted that the trial court found her client ITG was not a successor and wasn’t obligated to pay Florida. Reversing that, McCallum argued, would mean ignoring state corporate law, which says buyers don’t assume liability for what they purchase unless they expressly agree.

McCallum also highlighted that both parties agreed ITG would “use its reasonable best efforts to attempt to reach agreement with Florida to assume obligations of a settling defendant” but claimed the state never followed through with negotiations.

McCallum also was interview regarding this case by WFSU-FM on June 9.

Listen to the interview.