Lorillard Tobacco Co. v. Chester, Willcox & Saxbe, No. 08-4383

In an action brought by a class member who had participated in tobacco litigation in Florida as part of nationwide tobacco litigation in the late 1990s brought by several states against several tobacco companies, district court's decision to enjoin the parties to the state-court litigation from proceeding with an action in Florida state court raising matters relating to the Settlement Agreement is affirmed where: 1) the claims in the state court litigation fall squarely within the subject matter of the Settlement Agreement and the terms of the district court's permanent injunction; 2) given the broad grant of power by Congress under the interpleader statute, there can be no doubt that the district court was acting within its authority when it enjoined the state court litigation; and 3) the district court did not err in enjoining the litigation of the state action as necessary in aid of its jurisdiction as the state court complaint does not set forth claims in a manner sufficiently detached from the district court's administration of the settlement fund to avoid the permanent injunction in the federal interpleader action's final judgment.     

Read Lorillard Tobacco Co. v. Chester, Willcox & Saxbe, No. 08-4383

Appellate Information

Argued: December 1, 2009

Decided and Filed: December 23, 2009

Judges

Opinion by Circuit Judge Gilman

Counsel

For Appellant:  John A. DeVault, III, Bedell Dittmar DeVault Pillans & Coxe, PA

For Appellee:    Thomas W. Hill, Kegler Brown Hill & Ritter