GAIL R. ROUTH. Plaintiff

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1 GAIL R. ROUTH Plaintiff v. PHILIP MORRIS INCORPORATED, (PHILIP MORRIS U.S.A.), R.J. REYNOLDS TOBACCO COMPANY, LORILLARD TOBACCO COMPANY, and BROWN & WILLIAMSON TOBACCO CORPORATION, INDIVIDUALLY AND AS SUCCESSORS TO THE AMERICAN TOBACCO COMPANY Defendants. CIRCUIT COURT OF THE 11TH JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLA. Case No.: CA 11 September 2, 2003

2 PURPOSE This backgrounder has been prepared by R.J. Reynolds Tobacco Company to provide a concise reference document on this Broin II litigation. It is not a court document. HISTORY In 1997, in a separately filed class-action lawsuit, the defendants in this case entered into a settlement agreement with a class of non-smoking flight attendants known as the Broin class. Pursuant to the Broin Settlement Agreement, the class was disbanded. Individual class members, however, retained the right to file any claims that they had against the tobacco company defendants related to the plaintiff s environmental tobacco smoke (ETS) exposures in airline cabins. This settlement agreement was approved by the courts in September 1999, and approximately 3,000 individual claims have been filed since early Under the Broin Settlement Agreement, plaintiffs may seek compensatory damages, but they may not seek any punitive damages. The plaintiff in this case, Gail R. Routh, filed her lawsuit pursuant to the Broin Settlement Agreement. THE PLAINTIFF Mrs. Routh filed this lawsuit on Feb. 2, 2000, in the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Fla.. Mrs. Routh claims to have suffered injuries as a result of her exposure to secondhand smoke, or ETS, in aircraft cabins while she worked as a flight attendant for U.S. Airways from to Mrs. Routh was born in Ticonderoga, N.Y., on Aug. 28, She began working as a flight attendant for Allegheny Airlines in Allegheny Airlines was acquired by U.S. Airways in Mrs. Routh flew both domestic and international flights. In April 1988, the U.S. government banned smoking on domestic flights that were two hours or less in duration. In February 1990, the U. S. government banned smoking on all domestic flights six hours or less in duration. Mrs. Routh flew domestic flights until March 1992 when she began to fly international flights. U.S. Airways banned smoking on all flights worldwide in June 1996.

3 Mrs. Routh claims that she developed lung cancer, chronic sinusitis and chronic bronchitis during the course of her career as a flight attendant and that her lung cancer, sinusitis and bronchitis were caused by her exposure to ETS as a flight attendant. The plaintiff is represented by Stuart R. Silver of Kluger, Peretz, Kaplan & Berlin in Miami and Steven K. Hunter of Angones, Hunter, McClure, Lynch, Williams & Garcia, P.A. in Miami. THE DEFENDANTS Philip Morris Incorporated (Philip Morris U.S.A.) Philip Morris is the nation s largest manufacturer of cigarettes. Headquartered in Richmond, Va., it is a subsidiary of Altria Group, Inc., and its major brands include Marlboro, Basic, Benson and Hedges, Virginia Slims and Merit. Philip Morris is represented by Kenneth J. Reilly and William P. Geraghty of the Miami office of Shook, Hardy & Bacon, L.L.P. R.J. Reynolds Tobacco Company R.J. Reynolds Tobacco Company is the nation s second largest manufacturer of cigarettes. Headquartered in Winston-Salem, N.C., it is a wholly owned subsidiary of R.J. Reynolds Tobacco Holdings, Inc. The company s major brands include Winston, Salem, Camel and Doral. R.J. Reynolds Tobacco is represented by Jonathan M. Engram of the Winston- Salem office of Womble Carlyle Sandridge & Rice, PLLC. Brown & Williamson Tobacco Corporation Brown & Williamson is the nation s third-largest manufacturer of cigarettes. Headquartered in Louisville, Ky., it is a subsidiary of British American Tobacco, p.l.c. Its major brands include Kool, Carlton, Lucky Strike, GPC, Viceroy, Capri, Barclay, Pall Mall and Tareyton. Brown & Williamson also is successor by merger to The American Tobacco Company, Inc. Brown & Williamson is represented by Anthony N. Upshaw of the Miami office

4 of Adorno & Yoss, P.A. Lorillard Tobacco Company Lorillard Tobacco Co. is the fourth-largest manufacturer of cigarettes in the United States. Headquartered in Greensboro, North Carolina, it is an indirect subsidiary of the Loews Corp. The company s major brands include Newport, Kent, True, Old Gold and Maverick. Lorillard is represented by Kenneth J. Reilly and William P. Geraghty of the Miami office of Shook, Hardy & Bacon, L.L.P. TRIAL SITE The case will be tried in the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Fla. JUDGE This case will be tried by Judge Harold S. Solomon. EXPECTED DURATION The trial is scheduled to begin with jury selection on September 2, The parties have estimated that the trial will last four weeks. JURY AND VERDICT Six jurors and at least one alternate will be chosen. For the plaintiff to prevail, six jurors must reach a unanimous decision. PLAINTIFF S CASE Mrs. Routh claims that she developed lung cancer, chronic sinusitis and chronic bronchitis as a direct result of her exposure to ETS as a flight attendant. Based on the court s interpretation of the Broin Settlement Agreement, the plaintiff s case will proceed under the theories of specific causation and damages. Therefore, the plaintiff must prove that she has lung cancer, chronic sinusitis and chronic bronchitis and that her exposure to ETS as a flight attendant caused these conditions. Mrs. Routh seeks an unspecified amount in actual damages. Under

5 the Broin Settlement Agreement, Mrs. Routh may not seek punitive damages. DEFENDANTS CASE The defendants argue that Mrs. Routh s exposure to ETS in airplanes did not cause her lung cancer, chronic sinusitis or chronic bronchitis. The tobacco companies contend that ETS did not cause Mrs. Routh s lung cancer. Among other things, the defendants will present evidence that Mrs. Routh s lung cancer is of the bronchioloalveolar carcinoma (BAC) type, a sub-type of adenocarcinoma. The body of scientific evidence taken as a whole does not demonstrate that cigarette smoking causes BAC. Likewise, there is no scientific literature linking exposure to ETS with BAC. The companies also contend that Mrs. Routh s exposure to ETS in airplanes did not cause her chronic sinusitis. The defendants will present evidence of several alternative factors that more likely played a role in the plaintiff s developing chronic sinusitis, including a deviated septum and a concha bullosa -- both abnormal conditions in the nasal passages that interfere with normal ventilation of the sinuses that can result in chronic sinusitis. The defendants also believe that Mrs. Routh s exposure to ETS in airplanes did not cause her chronic bronchitis. Defendants will present evidence that the most likely cause for the plaintiff s bronchitis is her alpha-1 antitrypsin (AAT) deficiency. Evidence shows that individuals with AAT deficiency have a predisposition to chronic obstructive pulmonary diseases such as bronchitis.

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