The case concerns non-tribal member UPS, which allegedly transported cigarettes from and between New York State Native American reservations for a number of shippers. The State of New York and the City of New York asserted that in transporting unstamped, untaxed cigarettes, UPS violated an Assurance of Discontinuance it signed with the state in 2005, as well as New York law, New York Public Health Law, the Prevent All Cigarette Trafficking Act, the Contraband Cigarettes Trafficking Act and the Racketeer Influenced and Corrupt Organizations Act.
UPS disputed it ever violated its obligations or knowingly transported unstamped cigarettes from or between Native American reservations to unauthorized recipients.
Even so, the Court found that UPS violated its obligations in a number of respects and knowingly transported cigarettes from and between Native American reservations for all but one of the shippers. Therefore, it rejected UPS’s arguments against any liability. U.S. District Judge Katherine Forrest in Manhattan could determine the exact award as soon as this month.
