BY LISA DONOVAN
The Cincinnati Enquirer
It would cost the city of Cincinnati $20,000 to study whether there is a case to be made against the tobacco companies for smoking-related damages.
The city has "suffered fiscal loss" by providing health care to city employees and retirees as well as the indigent who seek treatment at city-run health clinics, according to a city administration report issued Tuesday.
But there isn't enough data to determine whether the city should pursue litigation, which is why further study is suggested. "We want to define the damages so that we can rely on them in a court case," said Deputy City Solicitor Karl Kadon.
He explained that the courts have accepted a "damages model" to quantify damages. The so-called "model" relies on epidemiological and statistical expertise as well as computer-based technology to determine the dollar amount.
"This is high-stakes stuff; it's very expensive to pursue," Mr. Kadon said.
Ohio Attorney General Betty Montgomery and counterparts in other states have sued the tobacco companies seeking to recover taxpayer money spent caring for people with smoking-related illnesses. Ohio's case is pending in Franklin County.
According to the Centers for Disease Control and Prevention, Ohio's cost of treating smoking-related illnesses between 1980 and 1993 was $3.3 billion. Medicaid paid for a large portion of the costs.
The city administration began studying whether Cincinnati should get involved at the request of Councilman Todd Portune. On Tuesday, Mr. Portune said he thinks the administration's report leans toward pursuing the measure, but he has some questions.
"I want to get a better understanding of the costs and the financial risks to the city before pursuing this any further," Mr. Portune said. "We have to understand whether the costs are going to outweigh the benefits."
The city isn't expected to begin discussing whether to pursue the litigation for at least a week.
City officials say a small amount of the city's pension fund assets are invested in tobacco stocks, including RJR - Nabisco and U.S. Tobacco.
Out of the city's $2.2 billion pension fund, less than 1 percent, or $3 million in assets, are tobacco stocks, said Laurie Hacking, pension fund manager.
