Earlier this month, General Tobacco requested that the United States Supreme Court review a decision from the Arkansas Supreme Court that General Tobacco must pay Arkansas $2.45 million under the Master Settlement Agreement. The State’s response to General Tobacco’s request for review is due early next month.
General Tobacco argues in its request for review that the Federal Arbitration Act required the State courts to honor the requirement contained in the MSA to arbitrate the parties’ dispute. Also at issue in the appeal is the scope of an alleged waiver of the right to arbitrate.
General Tobacco, the last major signatory to the MSA, joined in 2004 but stopped making payments in 2006.