UNITED STATES
Punitive damage limits at stake in tobacco verdict appeal

The question of whether juries should be allowed to award massive punitive damages is at stake when the US Supreme Court hears arguments over an US$ 80 million verdict against  Philip Morris.

The Oregon case is widely seen as a test of how the court will interpret previous cases on punitive damages – the additional money intended to punish a company or individual for their behaviour and act as a deterrent. Two key cases have suggested there should be a limit of 9-to-1 or less on punitive damages compared to actual or compensatory damages, intended to simply restore any financial or economic losses. The ruling in Philip Morris vs Williams – scheduled for oral arguments Tuesday – may have a sweeping effect on jury awards beyond the tobacco industry, attracting intense interest from corporate America and trial attorneys.
“This ruling might apply to pharmaceuticals, it might apply to automobiles, or it might apply to all products,” said Carl Tobias, a University of Richmond School of Law professor who tracks punitive damage cases.
The US$ 79.5 million in punitive damages awarded to the family of Jesse Williams in Oregon was more than 150 times the US$ 521,000 in actual damages – an amount the Oregon Supreme Court ruled last February was not excessive given the “extraordinarily reprehensible” conduct of Philip Morris in marketing cigarettes. The attorney who will be arguing the case for the Williams family said he believes the court could use the Oregon case to emphasise there are exceptions to every rule – especially when misconduct is severe – meaning “reprehensible” or “egregious” in legal terms. (pi)
 

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