|
FOR IMMEDIATE RELEASE
Contact:
Edward Sweda or Mark Gottlieb
(617) 373-2026
e-mail to media @ tplp.org
March 31, 2009
Press Release
U.S Supreme Court Signals That Very High Punitive
Damages
Are Available Against Cigarette Companies
Outcome
Demonstrates that State Farm Does Not Limit Punitive Damages to a
set ratio the for the Most Deserving Defendants
One day after the tenth anniversary of the multi-million dollar verdict
for the plaintiff in the Oregon case of Williams v. Philip Morris USA, Inc.,
the Supreme Court issued a per curiam
order today that the tobacco giant’s “writ of certiorari is dismissed as
improvidently granted.” This means that Philip Morris' appeal should not
have been heard by the Court because it lacked sufficient merit.
While the original jury award was $821,485 in compensatory damages and
$79.5 million in punitive damages, the case was sent to the Supreme Court of the
United States on three separate occasions, with the final trip
ending in total defeat for Philip Morris today.
The Oregon Supreme Court’s
January 31, 2008 opinion therefore is upheld.
“After a
reference in the U.S. Supreme Court’s 2003 decision in
State Farm v. Campbell that due process generally requires a limit
of a single-digit ratio between the punitive damages and the underlying
compensatory damages in a case, there was speculation that such a limit would be
required even in tobacco products liability cases. However, the Oregon
Supreme Court had rightly held that the degree of Philip Morris’
reprehensibility was so severe that due process provided for a ratio beyond an
artificial limit of single digits,” said Edward L. Sweda, Jr., Senior
Attorney for the Tobacco Products Liability Project (TPLP). “I am
especially delighted that the Williams family has finally achieved victory in
its attempt to hold Philip Morris accountable in a court of law for its
reprehensible misconduct,” Sweda added.
“Today’s
order marks the third consecutive major defeat for the tobacco industry before
the U.S. Supreme Court,” said TPLP's Director Mark Gottlieb,
noting that in June 2007 the Court had
unanimously rejected Philip Morris’ attempted defense of light cigarette
lawsuits on the historically inaccurate grounds that the Federal Trade
Commission had “authorized” the company’s conduct regarding using descriptors of
light cigarettes. Last December, the Court, in
Altria Group. Inc. v. Good, rejected Philip Morris’ argument that the
Federal Cigarette Labeling and Advertising Act preempts consumer protection
lawsuits over the company’s light cigarette scam. "Today's ruling removes
any doubt that very high punitive damages are available against cigarette
companies, including in the 8,000 or so cases moving to trial in Florida,"
Gottlieb concluded.
-- ## --
The Tobacco
Products Liability Project (TPLP) is a project of the Public Health Advocacy
Institute assisting attorneys involved in tobacco-related litigation. The Public
Health Advocacy Institute is committed to advocacy and research to further law
in common cause with public health. PHAI is a non-profit corporation located at
Northeastern University School of Law in Boston, Massachusetts. More information
about PHAI is available at
www.phaionline.org.
|