Tobacco Firms, Opponents Agree on Payments

NEW YORK — U.S. cigarette makers and industry opponents resolved the crucial issue of limiting the amount smokers could collect from tobacco companies in lawsuits to $4 billion a year, paving the way for a possible landmark agreement within two weeks, according to six people in the talks.

The two sides agreed that any of the $4 billion not paid to smokers who win lawsuits would go toward efforts to curb smoking, including anti-smoking classes, the participants said.

“Eighty percent of the deal is done,” said New Orleans attorney Russ Herman, representing smokers suing cigarette makers in the negotiations.

The negotiators will meet today to try to resolve another issue related to the industry’s liability. That is whether any settlement would give equal treatment to smokers who took up the habit after 1969, when health warning labels were put on cigarette packs, as those who started smoking earlier.

Representing the tobacco opponents in talks in New York this week will be Attys. Gen. Mike Moore of Mississippi, Christine Gregoire of Washington and Bob Butterworth of Florida, as well as private attorneys Stan Chesley, Richard Scruggs, John Coale, Joe Rice and Herman.

Philip Morris Cos., RJR Nabisco Holdings Corp. and other cigarette makers will be represented by former North Carolina Supreme Court Judge Phil Carlton and attorneys Meyer Koplow and Herbert Wachtell from Wachtell, Lipton, Rosen & Katz.

Industry spokesmen declined to comment.

After six months of talks, anti-tobacco groups and cigarette makers are eager to settle since the first of 30 courtroom showdowns with the states are slated to begin this summer. An agreement would limit cigarette companies exposure to damages from smokers’ lawsuits and states seeking to recoup costs paid to sick smokers. Anti-tobacco groups are hoping to wrest, through negotiations, strict curbs on cigarette advertising and distribution.

Any agreement would need congressional and White House support. Washington officials are eager to broker an agreement that would limit the availability of cigarettes because it could help reduce teen smoking.