Senate Vote Splits Money From Tobacco Lawsuit Gregoire Warns That Decision Is A Gamble With State’s Case

Thu., Feb. 19, 1998

Seattle Times

Disregarding a last-minute plea from state Attorney General Christine Gregoire, the Washington state Senate voted Wednesday to split any tobacco-lawsuit money the state may get between health programs and state schools.

Gregoire had warned Senate leaders of both parties Monday that the bill would jeopardize Washington’s case against the tobacco industry as well as the nationwide settlement of states’ tobacco claims now pending in Congress.

Republicans said Gregoire was being alarmist and that they were just trying to head off what Senate Ways and Means Chairman James West called the “feeding frenzy” that would commence when the state got its first $150 million payment.

“You know what? This is our dough,” said Senate Majority Leader Dan McDonald, R-Yarrow Point. As for members of Congress, judges or tobacco industry lawyers who might say otherwise, McDonald said, “Read this: Butt out.”

The measure passed on a 25-24, largely party-line vote. It now goes to the House.

“I find their act a stunning disregard of a pending lawsuit,” Gregoire said. “It’s tantamount to a $3.5billion gamble. We don’t need to risk the biggest, potentially most successful lawsuit in the history of Washington state.”

The measure, Senate Bill 6354, would divide any tobacco money evenly between a new “education enhancement account” and the health-services account.

The state’s consumer-protection and antitrust suit is scheduled for trial in September. The judge in that case has already ruled that any money recovered has to be used “to make restitution to the consumer class that was injured,” said Senior Assistant Attorney General John Hough.

Tobacco lawyers asked the state several months ago to give in writing the details of how any judgment money would be spent, Hough said. The state refused, and the request was made again at a meeting last Thursday.

“The defendants have made it clear they will potentially use or misuse anything the Legislature does in our lawsuit,” Gregoire said.

Local attorneys representing the industry could not be reached for comment Wednesday.

The trial won’t happen if the nationwide settlement is approved.

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