A federal appeals court has ruled that a smoker’s estate can hold onto USD 27 million in damages paid out by Philip Morris, reports Reuters.
Philip Morris USA Inc. had argued that the USD 20.76 million punitive damages which was more than three times the USD 6.25 million compensatory damages was unconstitutionally excessive, according to Reuters. The money had been paid out in favour of a woman who had developed lung cancer from smoking over six years ago and has since passed away.
Circuit Judge Beverly Martin representing a unanimous panel of the 11th U.S. Circuit Court of Appeals rejected the company’s appeal and ruled that the deceased smoker’s estate was allowed to keep the damages.
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