CITY OF ST. LOUIS V. AMERICAN TOBACCO COMPANY, INC. 70 F.Supp.2d 1008 (1999) CASE BRIEF

CITY OF ST. LOUIS V. AMERICAN TOBACCO COMPANY, INC.

70 F.Supp.2d 1008 (1999)

NATURE OF THE CASE: City (P) filed motion to remand action against American (D) to state court, alleging that federal court lacked subject matter jurisdiction because P established their causes of action against D as an in-state distributor.

FACTS: Ps filed a petition against Ds in state circuit court. P alleges that D, through conduct including, but not limited to, the manufacture, advertising, sale and promotion of tobacco products in the state of Missouri, have caused damage to Ps. Ps allege that they have suffered damage, because the defendants fraudulently and falsely promoted, advertised, and sold highly addictive tobacco products that cause lung cancer, throat cancer, emphysema, heart disease, and other diseases. Ps claim that in discharging their governmental public benefit functions, they were required to provide unreimbursed healthcare to Medicaid and medically indigent patients for these tobacco related illnesses caused by Ds' addictive tobacco products. D removed the action alleging diversity jurisdiction pursuant to 28 U.S.C. 1332. Defendants allege that diversity of jurisdiction exists in this case, because plaintiffs have fraudulently joined the Distributor Defendants in this cause of action for the purpose of insuring state court jurisdiction. P filed a motion to remand the action to the Missouri court system, contending that this Court lacks subject matter jurisdiction, because they have established their causes of action against the Distributor Defendants.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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