Experience

Dismissal of first-of-its-kind products liability claim in Brazil

Souza Cruz, SA

On October 4, 2011, the 41st Lower Civil Court of São Paulo dismissed a Public Civil Action by the São Paulo State Public Prosecution Office against Chadbourne's long time client Souza Cruz, SA, the leading tobacco manufacturer in Brazil. Filed in 2007, this lawsuit sought multibillion dollars in damages on behalf of all Brazilian current and former smokers and those allegedly harmed by secondhand smoke, and also sought recoupment of public funds allegedly expended to treat tobacco-related disease. Following extensive briefing, the Court dismissed the action on the merits, finding that cigarettes are not a legally defective product, that Brazilian smokers and public agencies have long been aware that smoking poses health risks, and that Souza Cruz has always complied with extensive regulations pertaining to the manufacturing and marketing of tobacco products. The decision marks the first judgment on the merits of a products liability claim in Brazil dealing with recoupment of health care costs allegedly due to smoking and claims for damages resulting from secondhand smoke. It is not clear at this time whether the plaintiff will pursue an appeal.