I
105TH CONGRESS
2D SESSION
H. R. 4375
To provide provisions relating to Castano actions.
IN THE HOUSE OF REPRESENTATIVES
JULY 31, 1998
Mr. MEEHAN introduced the following bill; which was referred to the Commit-
tee on Commerce, and in addition to the Committees on Ways and
Means, and the Judiciary, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned
A BILL
To provide provisions relating to Castano actions.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TEXT OF H.R. 3868.
For purposes of this Act, the text of H.R. 3868 shall
be considered to be a part of this Act.
SEC. 2. CASTANO ACTIONS.
The text of H.R. 3868 included in this Act under sec-
tion 1 is amended by adding at the end of title VIII the
following:
‘‘Subtitle C—Castano Actions
‘‘SEC. 821. CASTANO ACTIONS.
‘‘(a) IN GENERAL.—The rights and benefits afforded
in titles III and V of this Act are provided in settlement
of, and shall constitute the exclusive remedy for the pur-
pose of determining, civil liability as to addiction/depend-
ency claims asserted in the various Castano Actions
against the manufacturers of cigarettes and others All
bases for any such claim under the laws of any State are
preempted (including State substantive, procedural, reme-
dial, and evidentiary provisions) and settled, with reserva-
tion of the rights of individual class members to pursue
their claims in a civil action not based on addiction or
dependency in accordance with this Act. For purposes of
determining the applicable statute of limitation or repose,
individual actions filed by those who were included within
such class actions shall be considered to have been filed
as of the date of the filing of the original class action.
‘‘(b) ARBITRATION PANEL AND AWARDS.—
‘‘(1) ESTABLISHMENT.—For the purposes of
awarding of attorneys’ fees and expenses relating to
litigation affected by, or legal services that resulted
in whole or in part in, this Act, there is established
an Arbitration Panel which shall consist of 3 mem-
bers appointed as follows:
‘‘(A) one member shall be appointed by the
manufacturers;
‘‘(B) one member shall be appointed jointly
by the private attorneys and Attorneys General
who were signatories to the Memorandum of
Understanding dated June 20, 1997, by and
between manufacturers, the Attorneys General,
and the private attorneys (one vote to the pri-
vate attorneys and one vote to the Attorneys
General); and
‘‘(C) one member shall be appointed jointly
by the aforementioned private attorneys, manu-
facturers, and Attorneys General.
‘‘(2) OPERATION.—
‘‘(A) ESTABLISHMENT.—The members of
the Arbitration Panel shall be appointed not
later than 30 days after the date of enactment
of this Act. In the event either the manufactur-
ers or the private attorneys/Attorneys General
fail to timely appoint their arbitrator, the Sen-
ior Judge for the United States Court of Ap-
peals for the District of Columbia shall appoint
such arbitrator within 10 days after receipt of
a petition to do so from a party which was re-
quired to appoint an arbitrator. In the event
the manufacturers, the private attorneys, and
the Attorneys General are unable to agree upon
the third arbitrator within a period of 10 days
after the later of their appointments, then any
of them may petition the Senior Judge for the
United States Court of Appeals for the District
of Columbia to appoint that arbitrator and the
Senior Judge shall do so within 10 days after
the receipt of a petition requesting the appoint-
ment.
‘‘(B) PROCEDURES.—Not later than 30
days after the date on which all members of the
Arbitration Panel are appointed, the Panel shall
establish the procedures under which the Panel
will operate which shall include—
‘‘(i) a requirement that any findings
by the Arbitration Panel must be in writ-
ing and supported by written reasons;
‘‘(ii) procedures for the exchanging of
exhibits and witness lists by the various
claimants for awards;
‘‘(iii) to the maximum extent prac-
ticable, requirements that proceedings be-
fore the Panel be based on affidavits rath-
er than live testimony; and
‘‘(iv) a requirement that all claims be
submitted to the Arbitration Panel not
later than 3 months after the date of en-
actment of this Act and a determination
made by the Panel with respect to such
claims not later than 6 months after such
date of enactment.
‘‘(3) RIGHT TO PETITION.—Any individual at-
torney or group of attorneys involved in litigation af-
fected by this Act or the rendering of legal services
that resulted, in whole or in part, in this Act, shall
have the right to petition the Arbitration Panel for
attorneys’ fees and expenses.
‘‘(4) CRITERIA.—In making any award pursu-
ant to this section, the Arbitration Panel shall con-
sider the following criteria:
‘‘(A) The time and labor required by the
claimant.
‘‘(B) The novelty and difficulty of the
questions involved in the action for which the
claimant is making a claim.
‘‘(C) The skill requisite to perform the
legal service involved properly.
‘‘(D) The preclusion of other employment
by the attorney due to acceptance of the action
involved.
‘‘(E) Whether the fee is fixed or a percent-
age.
‘‘(F) Time limitations imposed by the cli-
ent or the circumstances.
‘‘(G) The amount involved and the results
obtained.
‘‘(H) The experience, reputation, and abil-
ity of the attorneys involved.
‘‘(I) The undesirability of this action.
‘‘(5) APPEAL AND ENFORCEMENT.—The find-
ings of the Arbitration Panel shall be final, binding,
nonappealable, and payable within 30 days after the
date on which the finding is made public, except that
if an award is to be paid in installments, the first
installment shall be payable within such 30-day pe-
riod and succeeding installments shall be paid annu-
ally thereafter.
‘‘(6) SOURCE AND PAYMENT OF AWARDS.—In
no event shall any award of the Arbitration Panel be
paid from, credited against, or otherwise affect, in
any way any other payments that are required to be
made by a manufacturer under any other provision
of this Act. Any such award shall be payable jointly
and severally by the manufacturers and liability
therefor cannot be discharged or avoided in bank-
ruptcy proceedings. In any bankruptcy proceedings,
all awards of the Arbitration Panel shall be afforded
the same status as payments to be made pursuant
to this Act.
‘‘(7) VALIDITY AND ENFORCEABILITY OF PRI-
VATE
AGREEMENTS.—Notwithstanding any other
provision of this Act, nothing in this section shall be
construed to abrogate or restrict in any way the
rights of any parties to mediate, negotiate, or settle
any fee or expense disputes or issues to which this
section applies, or to enter into private agreements
with respect to the allocation or division of fees
among the attorneys party to any such agreement.
‘‘(c) DEFINITIONS.—As used in this subtitle:
‘‘(1) CASTANO
ACTIONS.—The term ‘Castano
actions’ means the following civil actions: Glona
Wilkinson Lyons, et al. v. American Tobacco Co., et
al. (USDC Alabama 96–0881–BH); Agnes McGinty,
et al. v. American Tobacco Co., et al. (USDC Arkan-
sas LR–C–96–861); Willard R. Brown, et al. v. R.J.
Reynolds Tobacco Co., et al. (San Diego, California-
00711400); Gray Davis & James Ellis, et al. v. R.J.
Reynolds Tobacco Co., et al. (San Diego, California-
00706458); Chester Lyons, et al. v. Brown &
Williamson Tobacco Corp., et al. (Fulton County,
Georgia-E–59346); Roselyn Peterson, et al. v. Amer-
ican Tobacco Co., et al. (USDC Hawaii-97–00233–
HG); Jean Clay, et al. v. American Tobacco Co., et
al. (USDC Illinois Benton Division-97–4167–JPG);
William J. Norton, et al. v. RJR Nabisco Holdings
Corp., et al. (Madison County, Indiana 48001–
9605–CP–0271); Alge Emig, et al. v. American To-
bacco Co., et al. (USDC Kansas-97–1121–MIB);
Gloria Scott, et al. v. American Tobacco Co., et al.
(Orleans 
Parish, 
Louisiana-97–1178); 
Vern
Masepohl, et al. v. American Tobacco Co., et al.
(USDC Minnesota-3–06–CV–888); Matthew Tepper,
et al. v. Philip Morris Incorporated, et al. (Bergen
County, New Jersey-BER–L–4983–97–E); Carol A.
Connor, et al. v. American Tobacco Co., et al.
(Bernalillo County, New Mexico-CV96–8464); Edwin
Paul Hoskins, et al. v. R.J. Reynolds Tobacco Co.,
et al.; Josephine Stewart-Lomantz v. Brown &
Williamson Tobacco, et al.; Rose Frosina, et al. v.
Philip Morris Incorporated, et al.; Catherine Zito, et
al. v. American Tobacco Co., et al.; Kevin
Mroczkowski, et al. v. Lorillard Tobacco Company,
et al. (Supreme Court New York County, New York-
110949 thru 110953); Judith E. Chamberlain, et al.
v. American Tobacco Co., et al. (USDC Ohio-
1:96CV2005); Brian Walls, et al. v. American To-
bacco Co., et al. (USDC Oklahoma-97–CV–218–H);
Steven R. Arch, et al. v. American Tobacco Co., et
al. (USDC Pennsylvania-96–5903–CN); Barreras-
Ruiz, et al. v. American Tobacco Co., et al. (USDC
Puerto Rico-96–2300–JAF); Joanne Anderson, et
al. v. American Tobacco Co., et al. (Knox County,
Tennessee); Carlis Cole, et al. v. The Tobacco Insti-
tute, Inc., et al. (USDC Beaumont Texas Division-
1:97CV0256); Carrol Jackson, et al. v. Philip Morris
Incorporated, et al. (Salt Lake County, Utah-CV
No. 98–0901634PI).
‘‘(2) ADDICTION CLAIMS.—The term ‘addiction
claims’ or ‘dependency claims’ refers only to any
cause of action where the claim for relief seeks a
cessation program or other means to reduce or elimi-
nate the user’s addiction to or dependency on to-
bacco products, and as used in this subtitle is
brought by those who claim the need for nicotine re-
duction assistance. Neither addiction claims or de-
pendency claims includes claims based upon mani-
festation of tobacco-related illnesses or tobacco-relat-
ed diseases.’’.
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