State of Tennessee, by and through Robert E. Cooper, Jr., Attorney General and Reporter for the State of Tennessee v. NV Sumatra Tobacco Trading Company
This case involves the State of Tennessee suing NV Sumatra Tobacco Trading Company, a foreign tobacco product manufacturer, for failing to make required escrow deposits under the Tobacco Escrow Fund Act. The trial court initially granted summary judgment to Sumatra due to a lack of personal jurisdiction. On appeal, the Court of Appeals of Tennessee reversed, concluding that Sumatra had sufficient minimum contacts with the state through its intentional nationwide distribution system. The court found that Sumatra purposefully availed itself of the Tennessee market and that exercising personal jurisdiction was fair and reasonable. Additionally, the appellate court upheld the constitutionality of the Escrow Fund Act against Sumatra's affirmative defenses, remanding the case for the calculation of escrow funds owed by Sumatra.