In this Article, Professors Hanoch Dagan and James White study the most rec
ent challenge raised by mass torts litigation: the interference of governme
nts with the bilateral relationship between citizens and injurious industri
es. Using the tobacco settlement as their case study, Dagan and White explo
re the important benefits and the grave dangers of recognizing governments'
entitlement to reimbursement for costs they have incurred in preventing or
ameliorating their citizens' injuries. They further demonstrate that the c
urrent law can help capture these benefits and guard against the entailing
risks, showing how subrogation law can serve as the legal foundation of the
governments' claims, and how takings law can be used as a check against go
vernmental abuse.