United States Sixth Circuit

In an action involving the Tennessee's Attorney General's enforcement of an amended escrow provision in the Master Settlement Agreement between various states and tobacco manufacturers alleging an impermissible retroactive effect in violation of due process, a summary judgment ruling is reversed and remanded with instructions to dismiss the case without prejudice on grounds of sovereign immunity where: 1) continuous application of the retroactive statute is unlikely; 2) states enjoy immunity in federal court for tax-related claims; 3) the inherent dignity of the sovereign state favors immunity; and 4) the semi-tax nature of the escrow system would better lend itself to a suit in state court.

Appellate Information

• Decided 05/13/2008
• Published 05/13/2008

Judges

• Before:  KENNEDY, MOORE, and McKEAGUE, Circuit Judges.

Court

• United States Sixth Circuit

Counsel

• For Appellees:
  
• ARGUED:  John H. Sinclair, Jr., Office of the Attorney General, Nashville, Tennessee, for Appellant.  David F. Dobbins, Patterson, Belknap, Webb & Tyler, New York, New York, for Appellees.   ON BRIEF:  John H. Sinclair, Jr., Office of the Attorney General, Nashville, Tennessee, for Appellant.  David F. Dobbins, Patterson, Belknap, Webb & Tyler, New York, New York, for Appellees.