MEMORANDUM DECISION AND ORDER
Before the Court is Defendant Philip Morris USA, Ine.’s (“Philip Morris”) Motion for Summary Judgment originally filed on October 23, 2006 (Doc. 20), and reasserted on September 13, 2007 (Doc. 70).
I. Background
Plaintiffs John and Ann Grill 1 filed this action on October 28, 2005, invoking the Court’s diversity jurisdiction to assert state law claims against Defendant Philip Morris, the designer, marketer, manufacturer and distributor of Marlboro cigarettes, for fraud, design defect (strict liability), negligent design and testing, negligence in failing to warn outside of advertising or promotion, negligent advertising and marketing, breach of implied warranty, and loss of consortium. (Doc. 1.) Ann Grill, who was born on February 26, 1962, began smoking Marlboro cigarettes at the age of twelve in 1974 or 1975, when she was in junior high school. (Am. Compl. ¶ 5; Def.’s Local Rule 56.1 Statement of Undisputed Facts (“Def.’s 56.1 Statement”) ¶ 7.) Although she attempted to quit at the age of sixteen or seventeen when she learned about the health risks of smoking, she found that she was addicted and was unable to quit. (Def.’s 56.1 Statement ¶¶ 12, 55; Pl.’s Resp. to Def.’s 56.1 Statement and Counterstatement of Material Disputed Facts Pursuant to Local Rule 56.1 (“PL’s 56.1 Statement”) ¶¶ 11-12.) She smoked at least one pack of Marlboro cigarettes per day for over twenty years (Am. Compl. ¶ 6), and did not quit smoking until she was thirty-eight years old in 2000 (Def.’s 56.1 Statement ¶ 13; PL’s 56.1 Statement ¶¶ 1-2).
On October 12, 2002, Ann Grill was admitted to the hospital for multiple symptoms including pleuritic chest pains (Def.’s 56.1 Statement ¶ 14) and pain in her “lower area ... near [her] gallbladder,” (Ann Grill Dep. 149, Apr. 20, 2006), which seemed to radiate towards the middle of
On January 3, 2006, Plaintiff voluntarily dismissed his negligent advertising and marketing and breach of implied warranty claims with prejudice. (Doc. 10.) Defendant filed a Motion for Summary Judgment on October 23, 2006. (Doc. 20.) Plaintiff filed an Opposition on November 17, 2006 (Doc. 31), and Plaintiff filed a Reply on December 11, 2006 (Doc. 36.) In January 2007, before the Motion for Summary Judgment was decided, Plaintiff Ann Grill passed away as a result of lung cancer purportedly caused by smoking Marlboro Cigarettes. (Doc. 54.) On August 29, 2007, the Hon. Charles L. Brieant, Jr.
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ordered that Plaintiff John Grill be substituted as the sole Plaintiff for the purposes of prosecuting this action on behalf of himself and the Estate of Ann Grill. He also ordered that the Motion for Summary Judgment be withdrawn without prejudice with leave to renew following a status conference with counsel and the Court on September 28, 2007. (Doc. 63.) On September 11, 2007, Plaintiff John Grill filed an Amended Complaint, which in addition to substituting John Grill as the sole Plaintiff and withdrawing the previously asserted claims for negligent advertising and marketing and breach of implied warranty, added a claim for wrongful death and limited the fraud and negligent failure to warn outside of advertising or promotion claim to the time period up to and including February 26, 2008, the date on which Ann Grill turned eighteen years old. (Doc. 65.) By Stipulation between the Parties, “so ordered” by Judge Brieant on September 13, 2007, Defendant’s Motion for Summary Judgement was reasserted as to the Amended Complaint. (Doc. 70.) On January 6, 2009, Plaintiff voluntarily dismissed with prejudice his claims for design defect under a strict liability theory and negligent design and testing. (Doc. 76.) Thus, the remaining claims in this action are fraudulent concealment until February 26, 1980, negligent failure to warn outside of advertising and promotion until February 26,
II. Discussion
A. Summary Judgment Standards
Summary judgment is appropriate when “the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). An issue of fact is genuine “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.”
Anderson v. Liberty Lobby, Inc., 477
U.S. 242, 248,
When a motion for summary judgment is properly made and supported, an opposing party may not rely merely on allegations or denials in its own pleading; rather, its response must — by affidavits or as otherwise provided in this rule — set out specific facts showing a genuine issue for trial. If the opposing party does not so respond, summary judgment should, if appropriate, be entered against that party.
Fed.R.Civ.P. 56(e)(2);
see Patterson v. County of Oneida,
B. Statute of Limitations
Defendant argues that Plaintiffs claims for negligent failure to warn and fraudulent concealment are barred by the three-year statute of limitations for negligence actions. “Under New York law, the party invoking a statute of limitations bears the burden of proof for establishing such an affirmative defense.”
Keating v. U.S. Lines, Inc.,
No. 04-CV-6614,
the three year period within which an action to recover damages for personal injury ... caused by the latent effects ofexposure to any substance ... upon or within the body ... must be commenced shall be computed from the date of discovery of the injury by the plaintiff or from the date when through the exercise of reasonable diligence such injury should have been discovered by the plaintiff, whichever is earlier.
N.Y. C.P.L.R. 214 — c(2) (2009). C.P.L.R. 214-c is a “remedial measure” that “should be liberally construed to effectuate its purposes.”
Wetherill v. Eli Lilly & Co.,
With respect to Plaintiffs negligent failure to warn claim, Defendant contends that it is time-barred because it accrued on October 14 or 15, 2002, more than three years before Plaintiff commenced this action on October 28, 2005. On October 14, 2002, after she was hospitalized for symptoms including abdominal and chest pain, a CT scan revealed a lesion on Ann Grill’s upper right lobe. (Def.’s 56.1 Statement ¶¶ 15-16.) Defendant claims that the following. day, a pulmonary specialist who reviewed the results of the CT scan told Ann Grill that the lesion could conceivably be lung cancer.
(Id.
¶ 19.) The Parties agree, however, that the pulmonary specialist believed the lesion was highly likely to be pneumonia, and prescribed a two-week course of antibiotics followed by another CT scan to see whether the lesion would resolve.
(Id.
¶¶ 21-23; Pl.’s 56.1 Statement ¶¶ 21-23; Block
Grill
Decl. ¶ 120.) After the course of antibiotics, Ms. Grill felt much better, and although a November 1, 2002 CT scan showed the lesion was still present, it was smaller and her doctor continued to believe it was unlikely to be cancerous. (Block
Grill
Decl. Ex. M (Nov. 4, 2002 Notes of Dr. Agarwal).) Her doctor thus recommended against an invasive biopsy.
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(Id.
¶ 130.) Only after she developed a cough and a December CT scan showed the lesion still present did the doctor recommend the biopsy that revealed her lung cancer.
(Id.
¶¶ 132-136.) Accordingly, Plaintiff argues that his cause of action did not accrue until February 2002 because the primary condition that forms the basis of Plaintiffs claim is lung cancer, and the undisputed evidence shows that Ann Grill did not learn until February 2003, when a biopsy was performed, that she had lung cancer. As such, the discovery of her injury did not occur within the meaning of C.P.L.R. 214-c until February 2003, “when [she was] diagnosed with the primary condition for which damages are sought.”
Wetherill,
While Ms. Grill “discovered” that she had some kind of chest lesion in October 2002, she reasonably did not discover that it was cancer until February 2003. Given that in October 2002, the lesion was unaccompanied by coughing or shortness of breath and was consistent with pneumonia and in fact believed to be pneumonia by
Defendant also contends that the fraudulent concealment claim, which would ordinarily be subject to a six-year statute of limitations for fraud claims, is barred by the three-year statute of limitations applicable to negligence claims because this fraud claim is merely incidental to Plaintiffs negligence claim. (Def.’s Mem. of Law in Supp. of Mot. for Summ. J. (“Def.’s Br.”) 5-7.) Plaintiff does not argue otherwise. New York law prevents application of the six-year statute of limitations “[w]here the allegations of fraud are only incidental to another cause of action,” and permits plaintiffs to invoke the six-year statute of limitations only “when there would be no injury but for the fraud.”
N.Y. Seven-Up Bottling Co. v. Dow Chem. Co.,
C. Preemption
1. Section 5(b) of the Federal Cigarette Labeling and Advertising Act
Defendant argues that Plaintiffs fraudulent concealment and negligent failure to warn claims are expressly preempted by Section 5(b) (“Section 5(b)”) of the Federal Cigarette Labeling and Advertising Act (“Labeling Act”), which provides that “[n]o requirement or prohibition based on smoking and health shall be imposed under State law with respect to the advertising or promotion of any cigarettes the packages of which are labeled in conformity with the provisions of this Act.” 15 U.S.C. § 1334(b). The purpose of the Labeling Act was to
establish a comprehensive Federal program to deal with cigarette labeling and advertising with respect to any relationship between smoking and health, whereby — (1) the public may be adequately informed about any adverse health effects of cigarette smoking by inclusion of warning notices on each package of cigarettes and in each advertisement of - cigarettes; and (2) commerce and the national economy may be (A) protected to the maximum extent consistent with this declared policy and (B) not impeded by diverse, nonuniform, and confusing cigarette labeling and advertising regulations with respect to any relationship between smoking and health.
2. Fraudulent Concealment (until February 26, 1980) 6
Plaintiff alleges that Defendant intentionally and fraudulently failed to disclose
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to Ann Grill, during her teenage years, the deadly hazards and addictiveness of smoking. (Am. Compl. ¶¶ 58-68.) Plaintiffs claim is premised on the theory that tobacco industry scientists had gathered clear evidence regarding the addictiveness and harmfulness of smoking and not only failed to make this information publicly available (Deck of Jerome H. Block in Opp’n to Defs.’ Mot. for Summ. J. in
Clinton v. Brown & Williamson Holdings, Inc.,
05-CV-9907 (“Block
Clinton
Deck”) ¶ 192; Expert Witness Report of Neil E. Grunberg, Ph.D 8), but contradicted it by claiming through industry groups that the research was inconclusive (Decl. o' Michael K. Cummings, Ph.D, M.P.H. Decl. 14, 23-24, 29), and blocked efforts to educate the medical community and the public about it (Block
Clinton
Decl. ¶ 257; Cummings Deck 36-37). For example, Plaintiff alleges that in the early 1980s, Philip Morris prevented the publication in a scientific medical journal of a research paper regarding the addictiveness of smoking, and later required the scientists who conducted that research to sign agree
Section 5(b) does not preempt Plaintiffs fraudulent concealment claim because it is directed at Philip Morris’ failure to disclose material facts outside of advertising and promotion. In
Cipollone,
the plurality held that plaintiffs’ “claims that [defendants] concealed material facts [we]re ... not pre-empted insofar as those claims rel[ied] on a state-law duty to disclose such facts through channels of communication other than advertising or promotion.”
Cipollone,
In this case, Plaintiff does not allege that Defendant should have provided more specific warnings or that it should have disclosed additional facts through advertising or promotion. Rather, Plaintiff alleges that Philip Morris had a duty pursuant to state law to disclose information regarding the addictiveness and dangerousness of smoking through channels of communication other than advertising or promotion— for example, that Philip Morris had a duty not to conceal from the medical and scientific community the results of scientific research which contradicted its other public statements.
(See
Am. Compl. ¶ 52.) Specifically, Plaintiff alleges that Defendant as a product manufacturer had a duty pursuant to New York State common law to disclose material facts through channels of communication other than advertising and promotion.
9
(Pl.’s Opp’n 13-14 (citing
Miele,
In addition, Plaintiffs fraudulent concealment claim is not preempted because it is not predicated on a duty based on smoking and health, but rather on the more general duty not to deceive, which under New York law is not limited to the advertising and promotion of a product. The
Cipollone
Court found that plaintiffs fraudulent misrepresentation claims based on statements made in advertising and promotion were not preempted because they were not predicated “on a duty ‘based on smoking and health,’ but rather on a more general obligation — the duty not to deceive.”
Id.
at 258-29;
see Altria Group,
In this case, Plaintiffs claim is not that Defendant should have included stronger or more specific warnings, but that Defendant breached its state law duty not to
3. Negligent Failure to Warn Outside of Advertising and Promotion (until February 26, 1980)
Plaintiff alleges that Defendant had a duty to communicate to the public about the health hazards of smoking outside of the context of “advertising and promotion,” and breached this duty by failing to warn consumers, including Ann Grill during her teenage years, of the dangers of smoking, including addiction and lung cancer. (Am. Compl. ¶¶ 90-95.) Plaintiffs theory is that Philip Morris communicated to the public directly or through its agents, including TIRO, TI and CTR, about smoking and health outside of advertising and promotion through public statements on television, newspaper, radio and other media; that it had a duty to do so truthfully; and that it breached that duty by failing to warn or advise the public about the specific hazards of smoking, including addiction and disease. (Id.) Specifically, Plaintiff alleges that Defendant sponsored statements by TIRO, TI and CTR insisting that the harmfulness and addictiveness of smoking was not conclusively established, but rather was an open question that required more extensive research. (Clinton Deck ¶ 218-21; Cummings Deck 34.) These statements, they contend, served to create doubts regarding the dangers of smoking. (Clinton Deck ¶ 222; Cummings Deck 37.) Plaintiff testified that if Philip Morris had made and she had seen when she was a teenager non-promotional public service announcements like those it has made in recent years regarding the addictiveness and harmfulness of smoking, she would not have begun smoking. (Block Grill Decl. ¶ 39-42; Ann Grill Dep. 46-48.)
Plaintiffs negligent failure to warn claim is not preempted because it is based on Philip Morris’ failure to warn outside of advertising and promotion. Plaintiffs in
Here, Plaintiff does not contend that Philip Morris should have included additional or stronger warnings on its packages or in its advertisements. Rather, Plaintiff contends that Philip Morris should have warned the public regarding the dangers of smoking through means outside of advertising and promotion, such as through its promised publication of scientific research to the medical community and to the public through public service announcements. Given that the duty to warn under New York law does not appear to be limited to advertising and promotion,
see Ramirez v. Avery Berkel, Inc.,
No. 02-CV-6887,
In addition, Plaintiffs negligent failure to warn claim is not preempted to the extent that it is based on a duty that Defendant voluntarily assumed, as opposed to a duty imposed by state law. Plaintiff contends that Defendant voluntarily assumed the duty to communicate with the public outside of advertising and promotion, and therefore, the duty on which Plaintiffs claim is based cannot be said to have been imposed by state law. Because Defendant “has repeatedly maintained [an] express obligation through statements released to the public,” it has “expressly assumed (as opposed to a state imposing) the specific obligation to fully and accurately present the health effects of cigarette use to the American public.”
Blue Cross and Blue Shield of N.J., Inc. v. Philip Morris, Inc.,
This Court’s holding that Section 9(b) does not preempt Plaintiffs fraudulent concealment and negligent misrepresentation claims is consistent with the purposes of the Labeling Act. If Plaintiff were to prevail on either of his claims, no additional labeling or advertising regulations would be imposed on Defendant. See 15 U.S.C. § 1331 (purposes of Labeling act include preventing “diverse, nonuniform, and confusing cigarette labeling and advertising regulations with respect to any relationship between smoking and health”). Plaintiff seeks only to hold Defendant liable for fraudulently concealing, through channels of communication outside of advertising and promotion, facts regarding the hazards of smoking up to 1980. Accordingly, there is no danger of imposing on Defendant diverse, nonuniform, and confusing cigarette labeling and advertising regulations with respect to any relationship between smoking and health.
D. Fraudulent Concealment — Summary Judgment
“New York recognizes a cause of action to recover damages for fraud based on concealment, where the party to be charged has superior knowledge or means of knowledge, such that the transaction without disclosure is rendered inherently unfair.”
Miele,
1. Failure to Disclose Material Information and Intent to Defraud
Defendant argues that Plaintiffs fraudulent concealment claim should be
2. Reliance
Defendant contends that Ann Grill did not start smoking in reliance on Defendant’s failure to disclose information regarding the health risks of smoking. In support of this contention, Defendant argues that Ann Grill could not identify a single statement made by Defendant that influenced her to smoke. Plaintiff’s claim, however, is for fraudulent concealment and not affirmative misrepresentation. Thus, Plaintiff need not, as Defendant contends, point to a specific statement on which Ann Grill relied in starting to smoke, but rather
Plaintiff has presented evidence that could permit a reasonable jury to find that she was misled by Defendant’s silence. For example, Ann Grill testified that when she was a teenager, if she had seen public service announcements similar to those made in recent years by Philip Morris regarding the health dangers and addictiveness of smoking — in other words, had Defendant made statements outside of advertising and promotion that truthfully warned against, rather than concealed, the dangers of smoking — she would never have started smoking.
(See
Ann Grill Dep. 46-48.) While a jury may not believe that testimony, I cannot discredit it as a matter of law. Similarly, as noted earlier, Defendant’s alleged false statements altered the mix of information available to the public. A jury should decide whether Ms. Grill might have made a different decision about smoking had Defendant’s public statements reinforced the Surgeon General’s warning, thus presenting a “united front,” as opposed to the mixed messages that she apparently, as a teen, tuned out.
See Rose,
3. Proximate Cause
Finally, Defendant asserts that its purported fraudulent concealment was not the proximate cause of Ann Grill’s injuries because legally adequate warnings were on cigarette packages when she began smoking. “[Pjroof that the allegedly fraudulent omission was a substantial factor in causing identifiable loss to the plaintiff’ is “[ejssential to [a] fraud claim.”
Apollo H.V.A. C. Corp. v. Halpern Constr., Inc., 55
A.D.3d 855,
Moreover, there is evidence to show that even though Ann Grill continued to smoke after she became aware of the health hazards of smoking, she did so only because she was addicted. In fact, Ann Grill testified that she tried many times to quit smoking after she became aware that it was hazardous to her health but was unable to do so due to her addiction to nicotine. The fact that Ann Grill continued smoking after she discovered that it was harmful to her health does not sever the link between Defendant’s fraudulent con
E. Negligent Failure to Warn — Summary Judgment
To state a claim for negligent failure to warn pursuant to New York law, a plaintiff must demonstrate that “(1) the manufacturer had a duty to warn; (2) the manufacturer breached such duty so that the product is rendered defective, i.e. reasonably certain to be dangerous; (3) the defect was the proximate cause of the plaintiffs injury; and (4) that the plaintiff suffered loss or damage.”
Rogers v. Westfalia Associated Techs.,
1. Duty to Warn
Defendant argues it had no duty to warn about the health hazards and addictiveness of smoking because information regarding the health hazards of smoking have been widely disseminated in the United States since the 1950s, and Ann Grill was aware of the addictiveness and health risks of smoking throughout her smoking history. In support of this argument, they point to evidence that she saw the warning labels on cigarettes and that her friend’s father, who was a smoker, died of lung cancer. Under New York law, there is no duty “to warn a consumer already aware through common knowledge or learning of a specific hazard.”
Inzerilla,
2. Proximate Cause
Defendant asserts that Plaintiff has failed to submit evidence to show that the failure to warn was the proximate cause of Ann Grill’s lung cancer and death. They contend that she did not heed the Surgeon General’s warnings and continued to smoke. As discussed above, however, Plaintiff has presented enough evidence to create a fact issue as to whether Defendant’s failure to warn regarding the hazards and addictiveness of smoking outside of marketing and promotions was the proximate cause of her injuries.
F. Derivative Claims
Plaintiff also brings derivative claims against Defendant for wrongful death and loss of consortium. Plaintiff contends that as a result of the injuries sustained by Ann Grill, Plaintiff suffered a loss of her services, society, consortium and companionship. (Am. Compl. ¶¶ 121-24.) Having denied Defendant’s Motion for Summary Judgment as to Plaintiffs primary claims for fraudulent concealment and negligent failure to warn, Defendant’s Motion is similarly denied with respect to Plaintiffs derivative claims.
See Gotlin v. Lederman,
G. Punitive Damages
Defendant contends that Plaintiffs claim for punitive damages is barred by res judicata. In 1997, the New York State Attorney General, along with Attorneys General for states around the country, filed a parens patriae action against a number of cigarette manufacturers, including Defendant, asserting various claims including one for punitive damages. (Def.’s Br. Ex. P.) The allegations in the parens patriae suit were that since the 1950s, the defendants acted fraudulently in their attempts to raise doubt in the public’s mind regarding the harmful effects of smoking. As a result of this action, New York State, together with forty-five other states, executed a Master Settlement Agreement with cigarette manufacturers including Defendant. (Id. Ex. Q.) This Master Settlement Agreement was reduced to a Consent Decree and Final Judgment, which was upheld on appeal and resolved the punitive damages claims of all New York State residents against the defendants. (Id. Ex. R.)
Under New York law,
res judicata,
also called claim preclusion, prohibits “successive litigation based upon the same transaction or series of connected transactions if: (i) there is a judgment on the merits rendered by a court of competent jurisdiction, and (ii) the party against whom the doctrine is invoked was a party to the previous action, or in privity with a party who was.”
People v. Applied Card Sys., Inc.,
Applying this standard to the facts of this case, it is clear that Plaintiffs
res judicata
bars Plaintiffs punitive damages claim. First, there is no doubt that Plaintiffs claims and those brought by the New York State Attorney General are based on the same series of connected transactions. Plaintiff and the New York State Attorney General both alleged that defendants engaged in fraudulent behavior to create doubt as to the hazards of smoking.
(Compare
Am. Compl. ¶ 48
with
Def. Br. Ex. P ¶ 2.) Second, there was a final judgment on the merits in the
parens patriae
action.
See Fabiano v. Philip Morris,
III. Conclusion
Defendant’s Motion for Summary Judgment is GRANTED with respect to Plaintiffs claim for punitive damages, but DENIED in all other respects. The Clerk of Court is respectfully directed to terminate the pending motion. (Doc. 20.) The Parties are directed to appear at a status conference on September 29, 2009 at 10:30 a.m.
SO ORDERED.
Notes
. On August 29, 2007, John Grill was substituted as the sole Plaintiff for the purposes of prosecuting this action on behalf of himself and the Estate of Ann Grill. (Doc. 63.) Thus, I will refer to “Plaintiff” rather than "Plaintiffs” throughout this Memorandum Decision and Order.
. "A CT scan — also called computerized tomography or just CT — is an X-ray technique that produces images of [a patient’s] body that visualize internal structures in cross section rather than the overlapping images typically produced by conventional X-ray exams.” MayoClinic.com, CT Scan Definition, http:// www.mayoclinic.com/health/ct-scan/MY00309 (last visited Sept. 3, 2009).
. Judge Brieant, who originally presided over this action, passed away in July 2008, and on August 5, 2008, this action was transferred to me. (Doc. 72.)
. Defendant's expert agreed that because the lesion appeared to be getting smaller, it was appropriate to wait to perform a biopsy. (See Marleen Meyers, M.D. Dep. 28, Oct. 19, 2006.)
. "Where liability is predicated on a failure to warn, New York views negligence and strict liability claims as equivalent.”
Martin v. Hacker,
. Plaintiff’s claim is limited to the time period up to and including February 26, 1980, the date on which Ann Grill turned eighteen years old. (Block Grill Deck ¶ 6.)
. Plaintiff indicated in his Memorandum of Law in Opposition to Philip Morris's Motion for Summary Judgment ("PL's Opp'n") that he is not proceeding with his claim for fraudulent misrepresentation. (PL’s Opp’n 3 n. 1.)
. Plaintiff also contends that in 1994, a congressional hearing was held before the House Subcommittee on Health and the Environment during which industry executives expressed their belief that smoking was not addictive and was not proven to cause cancer, and concealed the information they possessed regarding the addictiveness and dangerousness of smoking. (Block Clinton Decl. ¶¶ 259-60; Cummings Decl. 28, 36.)
. "New York recognizes a cause of action to recover damages for fraud based on concealment, where the party to be charged has superior knowledge or means of knowledge, such that the transaction without disclosure is rendered inherently unfair.”
Miele v. Am. Tobacco Co., 2
A.D.3d 799,
. Some courts have held that all fraudulent concealment claims by consumers against tobacco companies based on the companies' failure to disclose information to the public beyond what is required by federal law are preempted because “manufacturers of cigarettes can ordinarily communicate directly with customers only through advertising and promotion.”
Small v. Lorillard. Tobacco Co.,
. Even as late as 1994, Philip Morris’s former CEO, William Campbell, declared under oath before the House Subcommittee on Health and the Environment that he believed that nicotine was not addictive and that smoking was not a proven cause of cancer. (Cummings Decl. 28, 36.)
