TOBACCO BARONS GET SET FOR UKP300BN BATTLE

THE American tobacco industry, already battered by a torrent of litigation
in courts around the country, is bracing itself for the start in Miami
tomorrow of a class-action lawsuit brought on behalf of all smokers in
Florida who are suffering from diseases related to their use of cigarettes.

The defendants in the case, which could become a turning point in the
industry's fortunes, include Brown & Williamson, a subsidiary of
London-based British American Tobacco (BAT). Also on trial are Philip
Morris, maker of Marlboro cigarettes, and RJ Reynolds.

It is the first ever class action against the industry to make it to trial
in the US and the stakes could hardly be higher. If found guilty, the
companies could be obliged to pay out damages totalling no less than $500bn
(around UKP300bn). It took lawyers from both sides 16 weeks to select the
jury members, amongst whom there is one smoker and three former smokers.

Lawyers fighting the case estimate there are up to one million smokers or
ex-smokers in Florida who have smoking-related illnesses, ranging from
cancer to emphysema and heart disease. Known as the Sunshine State, Florida
is heavily populated by retirees, many in uncertain health. If a guilty
verdict were to be delivered, the damages, after payment of lawyers' fees,
would be distributed amongst all of them.

The tobacco trial is certain to last several months. Lawyers for the
plaintiffs are expected to kick off with a series of expert witnesses
including leading doctors as well as former US Surgeons General. The kernel
of their case will be the allegation that the industry deliberately deceived
consumers about the health risks of smoking by holding back information.

The industry will counter that smokers have long been perfectly aware of the
hazards of smoking and bear responsibility themselves for choosing to ignore
them and continue to smoke anyway. That, however, ignores arguments over
addiction and whether or not people can stop smoking once hooked.

Robert Heim, a lead lawyer for Philip Morris, insisted to reporters last
week: "More than 40 million people have quit over the past 30 years. People
have been generally aware of the health risk of smoking from the turn of the
century, or even earlier."

On Friday, Judge Robert Kaye, who will preside over the trial, issued a gag
order, barring lawyers from either side from talking to reporters during the
trial. He made the instruction after summoning both camps to his chambers
just minutes before Philip Morris lawyers were due to hold a press
conference.

Part of the difficulty in choosing jurists had to do with aggressive
anti-smoking advertising, both on billboards and on television, that have
recently blossomed in Florida. Lawyers for the companies complained
especially about one advertisement depicting a mock awards ceremony for the
best all-round killer, where the tobacco industry is put alongside Adolf
Hitler as a possible winner.

The defendants worry that jury members will have been tainted by such
campaigns. "These ads are designed to tell the world what murderers the
tobacco industry is," said Joseph Moody, another of the defence lawyers.
"They are taking away our right to have a fair trial."

Checked-by: Don Beck