The tobacco company has been involved in a long-running lawsuit filed by the family of a Portland, Oregon smoker.  The family has been paid its share of the award by Phillip Morris, but the company decided to contest having to pay the share to the state as required.  Phillip Morris made the argument that the state released its right to collect that money with the company’s master settlement agreement in 1998 with 46 states, five U.S. territories, and the District of Columbia about claims related to smoking.

The ruling stated that the state’s share of punitive damages is due no matter what sort of lawsuit led to the award.  A state official said there was little anticipation it will be collected soon.  Tony Green, spokesman for Attorney General John Kroger, said, “We don’t actually expect this to be the end of the litigation.”  An estimate of how much the state’s 60 percent share is worth has not been released.

The issue at stake stems from a 1999 jury award in a lawsuit filed by family members of Jesse Williams, a janitor who died of lung cancer two years earlier.  The family received more than $61 million, which included economic damages, a 40% share of punitive damages, interest, and costs.  Philip Morris paid the family in 2009 after years of appeals.

Altria Group, the cigarette maker’s parent company, is lowering earning expectations based on the costs related to the payment of this lawsuit and a separate case filed by a former smoker.  In a statement, Altria said that it expects to record a pre-tax charge of $62 million related to judgments in the two cases and $57 million in related interest costs.