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Wednesday, September 24, 1997

Federal judge considers gag order in Texas tobacco lawsuit

By JUAN B. ELIZONDO Jr. / Associated Press Writer

AUSTIN (AP) -- A federal judge in Texarkana is considering whether to prohibit tobacco industry officials and the Texas attorney general's office from talking publicly about their upcoming $14 billion court fight.

Attorney General Dan Morales on Tuesday released a two-page proposed order to gag state and industry officials from talking with the news media and public about the lawsuit or any other litigation involving the tobacco industry.

U.S. District Judge David Folsom told Morales and tobacco industry officials to prepare to discuss the proposal at a hearing on Thursday. The trial in the case is scheduled for Oct. 6.

"The parties in this matter, their counsel, their spokesmen, public relation firms, testifying experts and retained experts shall not initiate communication with the media regarding the nationwide litigation involving the tobacco industry, including the claims and defenses of the parties, whether in federal or state court," the proposed order says.

Folsom added that if contacted by news reporters, tobacco officials and Morales' office could say only who is involved in the case, the time and date of various court deadlines and hearing schedules.

Even though Folsom only proposed the order, Morales' office and tobacco representatives were operating as if it were in effect and would not comment Tuesday.

Tobacco industry officials instead released a copy of the motion they filed Monday seeking an order barring Morales from addressing the jury because of public statements he has made.

In that motion, industry officials said Morales violated a court order and state rules governing lawyers' conduct by comparing the industry to criminals and murders.

According to one state rule, attorneys can't make statements that could reasonably affect potential jurors. "This attack of the defendants ... is an obvious threat to this trial," the tobacco attorneys said.

In other orders, Folsom threw out one state claim against Hill and Knowlton, a tobacco industry public relations firm.

Tobacco officials had asked the judge to throw out many of the state's claims against the industry. He refused all except Hill and Knowlton's request against the state claims against it under the federal Racketeer, Influenced and Corrupt Organizations Act.

Morales last year filed the lawsuit against Hill and Knowlton, several cigarette makers and industry trade groups claiming they had violated state and federal laws, including those prohibiting deceptive trade and fraud.

Morales is seeking to recoup state and federal money spent from 1980 through 1996 to treat Medicaid recipients suffering from tobacco-related illnesses.

Folsom also proposed an order to bar state and tobacco industry officials from trying to contact or survey potential jurors. He said he may ask the parties to submit lists of people in the Texarkana area who already may have been contacted in surveys or opinion polls about the lawsuit.

The Texas case continues to move toward trial despite a pending nationwide settlement of similar lawsuits against the tobacco industry. Morales and tobacco officials have said there will not be a settlement in the Texas case.

Two similar cases in Florida and Mississippi already have been settled.