Opinion ID: 2976476
Heading Depth: 3
Heading Rank: 4

Heading: The Plaintiffs’ Refund Claims

Text: The Escrow Statute (pre- and post-amendment) requires any NPM, for each year during which it sells cigarettes in Tennessee, to deposit the requisite amount into escrow for that year no later than April 15th of the following year. Id. § 47-31-103(a)(2). For instance, the escrow payment for cigarettes sold in 2003 was due no later than April 15, 2004. On the other hand, the statute does not specify when a refund claim must be made, nor does it specify how long Tennessee has to grant or deny the claim. The Attorney General takes the position that if a refund claim was made prior to the effective date of the ASR Amendment, then the claim would be governed by the Original ASR Provision. Conversely, any claim submitted on or after that date would be governed by the ASR Amendment. Under this application, S&M Brands was able to receive a refund on its 2003 cigarette sales under the Original ASR Provision because the company made its claim prior to April 20, 2004. The Attorney General refused to apply the Original ASR Provision to ITP’s refund claim on 2003 cigarette sales because the company submitted it on April 29, 2004. The Attorney General likewise refused to apply the Original ASR Provision to the Plaintiffs’ refund claims for sales between January 1 and April 19, 2004. Nos. 06-5828/5829 S&M Brands, Inc. et al. v. Cooper Page 5 The Attorney General further rejected ITP’s refund claims on the ground that the company is not a “tobacco product manufacturer” as defined under the Escrow and Contraband Statutes. ITP imports cigarettes manufactured in Armenia by Grand Tobacco, Ltd. (“Grand Tobacco”). It is undisputed that Grand Tobacco is a tobacco product manufacturer and is thereby subject to the Escrow and Contraband Statutes. Grand Tobacco established a qualified escrow fund account and deposits have been made to that account in Grand Tobacco’s name. To the extent ITP has deposited funds into escrow relating to cigarette sales in Tennessee, as ITP alleges, it has apparently always done so in the name of and on behalf of Grand Tobacco. ITP made the refund requests as the legal assignee of Grand Tobacco’s right to escrow releases.