RALEIGH, N.C., March 24 /PRNewswire/ -- Former Governor James E. Holshouser and President Emeritus of UNC Systems William C. Friday have asked Governor Hunt to call a special session of the NC General Assembly to address legislation protecting tobacco com

Special Sessions of the General Assembly are called for special crisis resolutions. We all remember Hurricane Floyd. We respectfully request Governor Jim Hunt consider calling a legislative session, before the end of April, to pass a law designed to protect tobacco companies from bankruptcy at least until the justice appeals process in a Florida liability case can run its course. The Florida case is a class action suit that could result in damages of $100 billion to $500 billion. Under Florida law defendants who are found liable for damages must post a bond in the amount of the damages and interest while the appeal process takes it course. Simply put, $500 billion is beyond what the tobacco companies can post. The companies would be forced to seek bankruptcy protection. That would cost jobs. This issue is not about health, smoking, choice, prices or farming. It is about fairness and the right to participate in the judicial process of our country without regard to financial resources. The damage phase of the Florida suit is expected to be completed in April. The result could be an immediate seizure of tobacco company assets in North Carolina before the companies are allowed to appeal. Awards against Lorillard and R.J. Reynolds could reach well over $100 billion. State and local taxes would be reduced, impacting schools and state employment. For example, R.J. Reynolds alone pays $110 million per year in state income taxes and $25 million in property taxes to Forsyth County. Virginia and Georgia have passed emergency legislation to limit the damage bond at $25,000,000 while the appeals process runs its course. Kentucky is expected to pass a similar law soon. North Carolina should also. We respectfully urge Governor Hunt and the legislative leadership to act to protect the many interests in North Carolina involved in the present proceedings. For further information please contact Ken Rabb - Vice President, Phoenix Communications at (919) 383-7779.

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