New Hampshire v. North of the Border Tobacco, LLC
Annotate this CaseRespondents North of the Border Tobacco, LLC (Tobacco) and Roll Your Own, LLC (RYO) appealed decisions of the Superior Court that enjoined them from allowing customers to use on-site cigarette-making machines to make rolled cigarettes with loose tobacco unless they make required escrow payments as required by law. An escrow fund was set up by the state to share the burden from damages for smoking-related health care costs. Respondents own tobacco shops that sell various tobacco products. At some point, for a rental fee, cigarette-making machines were installed for on-site customer use. The State filed suit in 2009 and sought an injunction against Respondents to stop selling or rolling cigarettes until they paid into the fund. Tobacco denied that it manufactured cigarettes and argued that it did not have to contribute to the fund. The trial court disagreed and issued the injunction. Upon review, the Supreme Court affirmed the trial court's decision to issue the injunction against Tobacco. However, the Court vacated the trial court's decision against RYO, holding that a preliminary injunction was premature prior to resolving several constitutional issues pertaining to RYO's business operations. Accordingly, the Court affirmed part, reversed part of the trial court's ruling, and remanded the case for further proceedings.
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