R.J. Reynolds violated its settlement agreement with the state when it failed to remove signs mentioning its Winston brand at the Sears Point Raceway [Infineon Raceway now], a state appellate court ruled Thursday. The state was previously granted summary judgment in its case against Reynolds, based in Winston-Salem, N.C. But Reynolds contended the Superior Court of San Diego County erred in concluding that the continued display of the Winston signs was a violation. The 1998 settlement was the result of the state’s lawsuit against various tobacco product manufacturers, including Reynolds. The settlement banned all billboard and outdoor advertising of tobacco products, but permitted Reynolds to continue to promote and its NASCAR Winston Cup Series as a “Brand Name Sponsorship.” Reynolds interpreted that portion of the settlement to mean they could keep their signs in place at the racetrack from 90 days prior to the first event in the series until 10 days after the final event. But the state understood the language of the settlement to cover individual events and individual locations. The fourth appellate district court agreed and upheld the lower court’s ruling.( Charlotte Obseerver/AP )(3-28-2003)
