Red Cross insurance company provide 8 million Americans with health-care financing. They paid millions of dollars for care attributable to illnesses related to tobacco use. In 1998, to recover some of this money, they sued the tobacco companies alleging fraud. They claimed that since 1953 the defendants conspired to addict millions of Americans to cigarettes and other tobacco products by misrepresenting the safety of nicotine and its addictive properties. The defendants’ success caused lung, throat, and other cancers, as well as heart disease, stroke, emphysema, and other illnesses to members of Red Cross plans, which Red Cross was required to pay. At trial, the defendants asked the court to dismiss the case on the ground that the plaintiffs did not have standing to sue. Does Red Cross have standing in this case? © a. No, Red Cross does not have standing because their claim should be filed against the insured who chose to smoke and risked these illnesses. b. Yes, Red Cross has standing to recover the money they paid for their customer’s medical care which was directly a result of their customers’ tobacco use. c. No, Red Cross does not have standing because their injury was too indirect and too remote, as it would be too difficult to determine whether the plaintiffs’ injuries were due to the defendant’s conduct or to intervening third causes. d. Yes, Red Cross has standing to recover the money spent on their customer’s medical care which was a direct a result of defendants’ fraudulent behavior.
Red Cross insurance company provide 8 million Americans with health-care financing. They paid millions of dollars for care attributable to illnesses related to tobacco use. In 1998, to recover some of this money, they sued the tobacco companies alleging fraud. They claimed that since 1953 the defendants conspired to addict millions of Americans to cigarettes and other tobacco products by misrepresenting the safety of nicotine and its addictive properties. The defendants’ success caused lung, throat, and other cancers, as well as heart disease, stroke, emphysema, and other illnesses to members of Red Cross plans, which Red Cross was required to pay.
At trial, the defendants asked the court to dismiss the case on the ground that the plaintiffs did not have standing to sue. Does Red Cross have standing in this case? ©
No, Red Cross does not have standing because their claim should be filed against the insured who chose to smoke and risked these illnesses.
Yes, Red Cross has standing to recover the money they paid for their customer’s medical care which was directly a result of their customers’ tobacco use.
No, Red Cross does not have standing because their injury was too indirect and too remote, as it would be too difficult to determine whether the plaintiffs’ injuries were due to the defendant’s conduct or to intervening third causes.
Yes, Red Cross has standing to recover the money spent on their customer’s medical care which was a direct a result of defendants’ fraudulent behavior.
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