The Consumerist is reporting that two Mac users were denied AppleCare coverage because the owners were smokers. Not because the computers were damaged by second hand smoke, but because of OSHA regulations.
According to separate reports, Apple denied coverage for two users in 2008 based on the fact that OSHA lists cigarette smoke as a biohazard. Both techs refused service to the computers not because the smoke damaged them, but because it's considered hazardous to a tech's health to work on a contaminated unit.
Both owners tried to appeal their cases, even going all the way up to Steve Jobs. Unlike this guy, they weren't as lucky.