Maryland v. Philip Morris, Inc.

The tobacco companies challenged the calculation of their payments due under the 1998 Master Settlement Agreement (MSA) to the State of Maryland.  The companies sought to decrease their payments based on an adjustment contained in the MSA, while Maryland argued there was an exception to the adjustment which applied to the state, requiring full payment.  In this matter, Maryland sought to enforce the exception through state courts and the companies, relying on the MSA, argued that arbitration was the proper forum for settlement of their calculation dispute.  Agreeing with the trial court, which referred the case to arbitration on pretrial motion, the appellate court found the plain language of the MSA dictated arbitration regardless of a subsequent 2003 agreement modifying the 1998 MSA.


Maryland v. Philip Morris, Inc., et al., 944 A.2d 1167, Maryland Court of Special Appeals (2008).

  • United States
  • Mar 27, 2008
  • Maryland Court of Special Appeals


Plaintiff State of Maryland


  • Lorillard Tobacco Co.
  • Philip Morris, Inc.
  • R.J. Reynolds Tobacco Co.

Legislation Cited

Related Documents

Type of Litigation

Tobacco Control Topics

Substantive Issues

Type of Tobacco Product