JEDDAH, 18 July — Representatives of the King Faisal Specialist Hospital in Riyadh and international tobacco companies are to meet in Geneva today to discuss the possibility of an out-of-court settlement over a lawsuit for damages filed by the hospital in the US.
The meeting was sought by the tobacco companies represented by the Law Office of Salah Al-Hujeilan in Saudi Arabia, informed sources told Arab News.
The Saudi hospital has filed lawsuits in the US against the tobacco companies seeking $15 billion in costs of treatment for diseases caused by smoking during the past 25 years.
The sources said the tobacco companies wanted to avoid a court trial. “Once they reach a preliminary agreement, they will meet again to sign a settlement deal,” they added.
On the other hand, if the two sides fail to reach an agreement, the hospital would go ahead with the court action against the firms within and outside Saudi Arabia.
The hospital has appointed Dr. Ahmad Al-Tuwaijeri as its legal consultant.
The sources said KFSH went ahead with legal action after the US courts ordered the tobacco companies to pay $246 billion in damages to US states over the next 25 years. The courts also banned advertisements on tobacco products. The US government spends about $20 billion annually to treat patients suffering from tobacco-related diseases.
If the tobacco companies are found responsible, the sources said, the Saudi judicial authorities might as well take action against them and their local agents. The international companies, they said, can either withdraw from the Saudi market or pay compensation.
KFSH announced last February that US courts have accepted its lawsuits against the tobacco firms. Saudi Arabia is the world’s 19th largest importer of tobacco products. Residents of Riyadh alone burn out cigarettes worth $54 million annually.
In recent years the Kingdom’s cigarette imports have declined considerably; they dropped from SR1.29 billion in 1991 to SR633 million in 1996. The government has stepped up a campaign against smoking by setting up a number of specialized clinics to help people kick the habit.
The health ministers of Saudi Arabia and other GCC states proposed in a recent meeting in Manama to increase tariff on tobacco imports to 150 percent from the current 100 percent.
The GCC states increased the customs tariff on tobacco imports to 100 percent in 1995. They also called for the reduction of nicotine content in tobacco and banned production of tobacco and its derivatives in the member countries.
