In Re Tobacco Cases I, JCCP 4041

House of Prince, A/S, a Danish corporation (HOP), appeals an order denying its motion to compel arbitration of the application (Application) of the State of California (State) to the superior court for enforcement of the master settlement agreement (MSA), to which HOP and State are parties. HOP contends the trial court erred by concluding the MSA’s arbitration clause does not require arbitration of the claims asserted by State in the Application.

FACTUAL AND PROCEDURAL BACKGROUND

On November 23, 1998, the Attorneys General of State, 45 other states, the District of Columbia, the Commonwealth of Puerto Rico, and four United States territories (together the Settling States) entered into the MSA with four manufacturers of tobacco products, known as the original participating manufacturers (OPM’s), to contractually settle certain of the Settling States’ pending and potential civil claims against the OPM’s. On August 19, 1999, HOP became a party to the MSA as one of the subsequent participating manufacturers (SPM’s).

Under the MSA’s provisions, OPM’s and SPM’s must make annual payments to the Settling States based on their respective market shares of cigarettes sold in the…