Oklahoma v. Native Wholesale Supply

Native Wholesale Supply imported and distributed several hundred million cigarettes in the State without reporting them as required under State laws enacted as part of the Master Settlement Agreement. A lower court had awarded the state $47 million dollars, and the tobacco company was seeking a new trial.  Here the Supreme Court upheld the lower court's grant of summary judgment and denied the tobacco company a new trial. 

State of Oklahoma v. Native Wholesale Supply, 2014 OK 49, Supreme Court (June 10, 2014)

  • United States
  • Jun 10, 2014
  • Supreme Court of the State of Oklahoma
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Parties

Plaintiff

  • Attorney General of Oklahoma
  • State of Oklahoma, ex. rel E. Scott Pruitt

Defendant Native Wholesale Supply

Legislation Cited

Master Settlement Agreement

Oklahoma MSA Complementary Act

Related Documents

Type of Litigation

Tobacco Control Topics

Substantive Issues

Type of Tobacco Product

None

"The AG requested the district court to enter summary judgment in its favor and to order NWS to disgorge the gross receipts received from the sale of Seneca cigarettes as evidenced by Exhibits 5 and 6. Exhibits 5 and 6 were sales and shipping records which NWS supplied to the AG in the bankruptcy court in New York. The district court inquired whether these two exhibits are "the gospel," and NWS' attorney replied in the affirmative. NWS made no effort in the district court to dispute the material facts that it imported and directed the distribution of Seneca cigarettes into Oklahoma as shown in the sales and shipping records included in Exhibits 5 and 6. These two exhibits, according to the AG, show NWS' gross receipts from its sales of Seneca cigarettes in violation of the Complementary Act totaled at least $47,767,795.20. The AG requested a $47,767,795.20 award against NWS to be paid into the Oklahoma Tobacco Settlement Endowment Fund. The district court entered summary judgment in favor of the AG and ordered NWS be disgorged of $47,767,795.20 of its gross receipts. On appeal, NWS contends that disgorgement of gross receipts from all sales of cigarettes brought into Oklahoma is erroneous and that it should have had an opportunity to present evidence showing the significant portion of its gross receipts that were attributable to federal excise taxes and the costs of the cigarettes. On summary judgment, NWS did have an opportunity to present evidence to the district court. However, in responding to the AG's motion for summary judgment, NWS did not offer any evidentiary material showing the amount it paid, if any, for federal taxes on the cigarettes it imported from Canada; the amount it paid, if any, to the cigarette manufacturer; or the amount it paid, if any, for transportation and storage of the cigarettes it caused to be imported and shipped into Oklahoma during the period from August of 2006 to August of 2010."