Victories over
Philip Morris -- Reynolds!
Patricia
Henley,
Richard
Boeken,
Betty Bullock,
Jesse Williams
-- January 31,
2008 decision!
Leslie
Whiteley -- another victory, October 15, 2009
& loved
ones defeated the
nicotine cartel!
Overview:
Updated
October 18, 2009
OVERVIEW:
*Patricia Henley
case:
"This is a good day for the children,"
said [Patricia] Henley, who had long
complained that her case would never end. "This is punishment money
from
the tobacco industry, but it needs to be turned into money that's going
to help
people."
"There was a
sweetener that killed one rat, and they took it off the market," she
said. "But they continue to sell this product that is proven to kill
people. Where does that make any sense?"
To
donate to or get
involved with the Patricia Henley Foundation, e-mail lindalaurie@cox.net <mailto:lindalaurie@cox.net> .
"At long last, Philip Morris will have
to pay Patricia Henley because
of
its history of lies, fraud and other corporate wrongdoing," said Edward
L.
Sweda Jr., senior attorney for the Tobacco Products Liability Project,
a
Boston-based group that promotes litigation against cigarette makers.
*Richard
Boeken case:
July, 2007:
Judge David L. Minning ruled against Philip Morris, which had wanted a
complete trial on all issues.
The judge said, "This court concludes
that (Philip Morris) has not demonstrated that relitigation of issues,
other than issues of causation and damages, is appropriate in this
case." The court case of Dylan Boeken, 15 year old son of Richard
Boeken, is scheduled for January 7, 2008. [Excerpts of a media
article are given below.]
March 20,
2006:
The US Supreme Court refused to hear an appeal from Philip
Morris of
the punitive damages award against them. The lead paragraph from The Los Angeles Times, March 21,
2006, is below, and further excerpts from it and other media are on
this page under Boeken
case.
"Five years after a
landmark defeat in a Los Angeles courtroom, tobacco
giant Philip Morris USA has exhausted its appeals
and will have to pay record damages
of more than $82 million to the widow of a longtime smoker of
its Marlboro cigarettes." ...
"The very conduct that injured Boeken was
directed at all smokers in the United States, repeated over many years
with knowledge of the risk to
human life and health," and demonstrated
"intentional deceit," the state
appeals court ruled last year.
2005: "The California
Supreme
Court refused Wednesday
[2005] to hear an appeal of a
$55.4-million judgment against the top U.S. cigarette maker, a unit of
Altria Group Inc. In June 2001, Philip Morris was
found guilty of
negligence
and fraud in a lawsuit filed by Topanga resident Richard Boeken, a
former
Marlboro smoker then afflicted with lung cancer who died a few months
later
at 57."
*Jesse Williams case,
2008 -- January 31, 2008:
the Oregon Supreme Court upheld the jury's $79.5 million punitive
damages award against Philip Morris.
February 2, 2006: Oregon Supreme Court and in February 20, 2007, the US Supreme Court
"In an opinion
expressing contempt for the lethal business practices of
Philip Morris, the Oregon Supreme Court today [February 2, 2006]
affirmed an appeals court ruling restoring a 1999 punitive damages
award of $79.5 million in the lung cancer wrongful death trial of Jesse
Williams."
February 20, 2007, the US Supreme
Court in a 5-4 decision overturned the punitive damages award, but did
not address the size of the award or adversely affect punitive damages
as a function of the civil justice system. More on this below.
*Betty Bullock
case:
April 21, 2006: The Court of
Appeal of the State of California, Second Appellate District, Division
Three, upheld a $28 million punitive damages award in the case of
Bullock v. Philip Morris USA, Inc. The Court of Appeal concluded "that the refusal of Philip Morris's
proposed jury instructions on punitive damages was proper" and also
held that "the extreme reprehensibility of Philip Morris's conduct
justifies a ratio of punitive damages to compensatory damages
significantly greater than a single-digit." In 2002, a Los
Angeles jury returned a verdict for the plaintiff in the amount of
$850,000 in compensatory damages and $28 billion in punitive
damages. The trial judge later lowered the punitive damages award
to $28 million. [From Statement of Edward L. Sweda, Jr., Senior
Attorney, Tobacco Products Liability
Project, April 21, 2006]
*Leslie Whiteley case:
October 15, 2009: Appeals
Court Upholds California Jury’s Multi-Million Dollar Verdict against
R.J. Reynolds and Philip Morris
May 3,
2007: For the second time in about seven years, a San
Francisco jury has found two major tobacco companies liable for damages
related to Leslie Whitely's habit of smoking cigarettes [Whiteley v. Philip Morris].
Betty Bullock case:
EXCERPTS
from The San Francisco Chronicle,
April 21, 2006, headlined, Appeals
court upholds damages against Philip Morris, writer Bob Egelko.
A state appeals court today upheld $28
million in punitive damages against Philip Morris in a suit by a woman
who smoked the company's cigarettes for 45 years and died of lung
cancer in 2003.
The high court [U.S. Supreme Court], in a
2003 ruling, set out a 9-1 ceiling for punitive damages -- that is,
nine times the amount of compensation that was awarded for the
plaintiff's actual losses -- and said punitive awards significantly
above that ratio would violate a defendant's property rights in most
cases. But in today's 2-1 ruling, the Court of Appeal panel in
Los Angeles said the punitive damages awarded to Bullock's family, 33
times the amount of compensation, were justified by Philip Morris'
"extremely reprehensible" conduct.
The company, along with others in the
industry, worked for decades, the court majority said, to conceal the
deadly nature of its products, manipulated their ingredients to make
them more addictive, and pitched its advertising campaign at young
people like Bullock, who was 17 when she started smoking. The
justices also said a large punitive award may be needed to have a
deterrent effect on a company as big and profitable as Philip Morris,
whose lawyer acknowledged during the trial that it could afford to pay
$6 billion in punitive damages.
Jesse
Williams case
January
31, 2008, the Oregon Supreme Court upheld the jury's $79.5 million
punitive damages award against Philip Morris.
The Oregon Supreme Court
decision is at http://www.publications.ojd.state.or.us/S051805.htm
EXCERPTS from Associated Press,
January 31, 2008, "Oregon High Court Reaffirms Decision to Award Nearly
$80M in Damages in Philip Morris Case", Writer, Tim Fought, assistance
from Sarah Skidmore.
The
Oregon Supreme Court for a third time has allowed a $79.5 million
punitive-damages judgment against Philip Morris, an award twice struck
down by the U.S. Supreme Court, which suggested it was excessive.
A jury in Portland made the award in
1999 to the family of Jesse Williams, a former Portland janitor who
started smoking during a 1950s Army hitch and died in 1997 six months
after he was diagnosed with lung cancer.
The Oregon high court said Thursday
that jury instructions proposed by Philip Morris at the trial had
defects, so the judge was correct to bar them.
Thursday's decision likely lobs the
case back to the nation's high court, lawyers said. Business groups
have watched the case closely for its potential as a precedent for
large jury awards in product liability cases.
The
Oregon court's decision did not take issue with the U.S. Supreme
Court's latest ruling on the case. That decision said a jury awarding
punitive damages may punish a defendant only for the harm done to the
person who is suing, not to others who might have been harmed, but
weren't involved in the case.
The instructions about punitive
damages have been at the center of the legal battle over the suit
brought by Williams' widow, Mayola.
The Oregon high court made its first
decision in 2002, refusing to hear an appeal from Philip Morris.
Then the U.S. Supreme Court rejected
the judgment of nearly $80 million, saying that punitive damages should
be held to no more than nine times actual economic damages. It
declined, however, to make that a hard and fast rule.
In the Williams case, the family was
awarded $521,000 in actual damages. The punitive damages were about 150
times greater.
Next, the Oregon Supreme Court upheld
the punitive damages, citing "extraordinarily reprehensible" conduct on
the part of Philip Morris officials.
The Oregon court said Thursday that
Philip Morris and the tobacco industry worked during the 1950s on a
"program of disinformation" to create doubt about the dangers of
smoking. Williams, the court said, "learned from watching television
that smoking did not cause lung cancer," but, once he came down with
it, said the "cigarette people" had lied to him.
Then came the U.S. Supreme Court's
second take on the case, last year, a narrower ruling that did not
address the size of the award but only how juries could consider the
conduct of defendants in determining punitive damages.
A lawyer on the family's side, James
Coon of Portland , said the Oregon court's decision was right to focus
on whether the jury instructions were correct under Oregon law. It is a
threshold question that has to be answered before the courts consider
whether the damages are unconstitutionally large, he said.
The Oregon court said that, for
example, the jury instructions Philip Morris suggested would have
forbidden the jury to consider the profits the tobacco company made
through misconduct that was not illegal.
Edward Sweda
Jr. of the Tobacco
Products Liability Project at Northeastern University School of Law in
Boston said Philip Morris is likely to ask the U.S. Supreme Court to
take another look at the punitive damages, and it's possible the high
court won't reconsider the size of the award.
EXCERPTS
from The
Oregonian,
January 31, 2008, headlined, "Oregon Supreme Court backs $79.5 million
award; Tobacco - The judgment against Philip Morris had been overturned
twice", writer Ashbel S. Green.
The
Oregon Supreme Court today upheld
a $79.5 million punitive damages award against Philip Morris that has
twice been overturned by the U.S. Supreme Court.
The most recent reversal concerned a
jury instruction and whether it violated the constitutional rights of
Philip Morris.
But the Oregon Supreme Court said
Philip Morris incorrectly submitted the jury instruction, so there was
no violation.
The award stems from a 1999 trial in
Multnomah County. A jury found the tobacco company partially
responsible for the death of Jesse D. Williams, a longtime Marlboro
smoker who died of lung cancer in 1997.
The jury ordered Philip Morris to pay
$821,485 in compensatory damages and $79.5 million in punitive damages,
which are designed to punish bad behavior.
Attorneys for the Williams family
presented evidence that tobacco executives repeatedly lied about the
risks of smoking.
The U.S. Supreme Court overturned the
award in 2003 and ordered the Oregon Supreme Court to consider a
formula that a punitive damage award should generally be no more than
nine times a compensatory award.
The Oregon Supreme Court upheld the
award, saying the "reprehensible" conduct of Philip Morris officials
warranted such a large verdict.
Last year, the U.S. Supreme Court
overturned the verdict again.
The court did not mention the size of
the award but focused on a narrow question about whether the jury
considered the injuries of other smokers in calculating the size of the
punitive damages.
February 2006:
"In an opinion
expressing contempt for the lethal business practices of
Philip Morris, the Oregon Supreme Court today [February 2, 2006]
affirmed an appeals court ruling restoring a 1999 punitive damages
award of $79.5 million in the lung cancer wrongful death trial of Jesse
Williams."
February 20, 2007, the US Supreme
Court in a 5-4 decision overturned the punitive damages award, but did
not address the size of the award or adversely affect punitive damages
as a function of the civil justice system.
In a dissenting opinion, US
Supreme Court Justice Paul Stevens wrote,
A murderer who kills his victim by
throwing a bomb that injures dozens of bystanders should be punished
more severely than one who harms no one other than his intended
victim. Similarly, there is no reason why the measure of the
appropriate punishment for engaging in a campaign of deceit in
distributing a poisonous and addictive substance to thousands of
cigarette smokers statewide should not include consideration of the
harm to those "bystanders" as well as the harm to the individual
plaintiff. The Court endorses a contrary conclusion without
providing us with any reasoned justification.
Excerpts from BBC
News, 20 February, 2007, headlined, Tobacco firm wins payout appeal, no
writer noted.The
US Supreme Court has thrown out a ruling that tobacco firm
Philip Morris must pay $79.5m (£40.7m) in punitive damages after
the
death of a smoker.
The court decided 5-to-4 that the earlier ruling must
be
overturned. It said the jury had not been told that it could only
fine the firm for harm done to the plaintiff, not to other smokers
whose cases were not before it.
The case was brought by Mayola Williams, whose husband
Jesse died of lung cancer in 1997 after smoking for 40 years. Ms
Williams sued the cigarette manufacturer for fraud on
behalf of her husband. She had claimed that the jury decision was right
because
it had punished Philip Morris for a "massive market-directed fraud"
over many years - misleading people into thinking cigarettes were not
dangerous or addictive. Ms Williams had argued that her husband had
believed
tobacco companies when they said the product was safe.
Her payout had earlier been upheld by the Oregon state
Supreme Court.
In the appeal, Philip Morris said the jury should only
have been allowed to punish it for the harm done to Mr Williams and not
to other smokers. Philip Morris also asked the court to decide whether
the
payout had been "constitutionally excessive", but the judges made no
comment on this.
A number of organisations, including the National
Association of Manufacturers and the Chamber of Commerce have called
for greater restrictions on the sums which can be ordered in damages.
EXCERPTS
from News Release, February 20, 2007, Tobacco Product Liability
Project, headlined, U.S. Supreme Court overturns punitive damages award
in Williams but does not address size of the award or adversely affect
punitive damages as a function of the civil justice system.
Further
information on litigation is at their web site.
Oregon
Supreme Court makes the next move and may:
a) Revise the opinion and uphold
the
award;
b) Revise the opinion and reduce the award; or
c) Order a new trial on
punitive damages only
BACKGROUND
No. 05-1256
IN THE SUPREME COURT OF THE UNITED STATES
PHILIP MORRIS USA , Petitioner, v. MAYOLA WILLIAMS,
Respondent.
The lawsuit was brought by the family of Jesse
Williams, who
smoked Marlboro cigarettes for 47 years, and resulted in a jury finding
that
Mr. Williams and Philip Morris were equally at fault for the fatal lung
cancer
suffered by Mr. Williams. The jury awarded the family $800,000 in
compensatory damages in 1999. In addition, the jury found that Philip
Morris
was guilty of common law fraud for its 50 years of lies and awarded
$79.5
million in punitive damages.
Boston , MA
:
Neither
Philip Morris nor the lawyers taking on Big Tobacco were entirely happy
with
today's 5-4 decision of the U.S. Supreme Court in Philip
Morris, USA v. Williams .
Obviously, while Philip Morris and many corporate defendants hoped that
today's
decision would set firm limits on the amount of punitive damages that
could be
awarded to punish and deter reprehensible business practices that
injure and
kill, it did no such thing. Rather, it imposed a requirement that
punitive damages awards must not be used to punish defendants for harm
to
anyone not involved in the litigation. On the plus side for
Philip
Morris, a punitive damages award of $79.5 million is no longer valid
but may be
reinstated, reduced, or a new trial to determine the amount of punitive
damages
could be ordered.
The
two questions that the U.S. Supreme Court reviewed were:
1.
Whether, in reviewing a jury’s award of punitive damages, an appellate
court’s conclusion that a defendant’s conduct was highly
reprehensible and analogous to a crime can “override” the
constitutional requirement that punitive damages be reasonably related
to the
plaintiff’s harm; and
2.
Whether due process permits a jury to punish a defendant for the
effects of its
conduct on non-parties.
The
Court did not address the first question.
Justice
Breyer, who authored the Majority Opinion, states:
In our
view, the Constitution’s Due Process Clause forbids a State to use a
punitive damages award to punish a defendant for injury that it
inflicts upon
nonparties or those whom they directly represent, i.e., injury that it
inflicts
upon those who are, essentially, strangers to the litigation.
This
conclusion stems from the rejection of a jury instruction proposed by
Philip
Morris that stated, in part:
The size of any punishment should
bear a reasonable
relationship to the harm caused to Jesse Williams by the defendant's
punishable
misconduct. Although you may consider the extent of harm suffered by
others in
determining what that reasonable relationship is, you are not to punish
the
defendant for the impact of its alleged misconduct on other persons,
who may
bring lawsuits of their own in which other juries can resolve their
claims and
award punitive damages for those harms, as such other juries see fit.
At oral arguments before the U.S. Supreme Court on October
31,
2006, Robert Peck, arguing for Mayola Williams (the widow of the
deceased
smoker, Jesse Williams), maintained that Philip Morris's proposed
instruction
was not permissible under Oregon law and so it was not an error to
exclude
it. This was the finding of both the Oregon Court of Appeals and
Supreme
Court of Oregon.
Andrew Frey, arguing for Philip Morris, asserted that it
would not be fair to punish them for simply putting others at risk
through its
conduct. Justice Stevens asked whether it would be fair to
consider the
risk to others in ascertaining the reprehensibility of the conduct
where
someone shot a machine gun into a crowd but only killed one person. In
today's'
ruling, the Court essentially answers this question by saying that the
jury may
consider the harm to others or risk to others in determining the
reprehensibility of the machine gun attack, but any punitive damages
must be
limited only to punishing the defendant for the harm to the plaintiff
in the
court room.
At oral
arguments, several of the Justices expressed concern that the
instruction
sought by Philip Morris was not especially clear. It may turn out
that
after considering the meaning of today's ruling, the Oregon Supreme
Court will
find that the instruction was properly denied and reinstate the
verdict.
If that happens, Philip Morris will again seek review by the U.S.
Supreme Court
on the unaddressed question of possible excessiveness of the award. It
is far
from a sure thing that the Court will agree to revisit this case.
Richard Daynard , Professor
of Law
at Northeastern University in Boston suggested that, "this result
suggests to me that there are not 5 votes at
the U.S. Supreme Court for keeping punitive damages to single digit
multipliers. If there were, it would have been a much simpler
matter for
the Court to simply say so and strike the award on that basis.
Were the
award affirmed in Oregon ,
I doubt that the U.S. Supreme Court would chose to overturn the award
because
it is excessive."
Mark Gottlieb , Director of the
Tobacco Products Liability Project
noted: "What the Court did not do today was to impose any new limits on
the amount of punitive damages in tobacco cases. This is a result
that
most people expected after hearing oral arguments in October. The
Oregon
Supreme Court must now determine whether the denial of the jury
instruction in
question was proper and whether the jury may have improperly punished
Philip
Morris for injuring and killing Oregonians besides Jesse
Williams. If
not, the award will likely be reinstated. If so, it may be
reduced or
punitive damages would have to be determined by another jury."
Edward L. Sweda, Jr ., Senior
Attorney for the Tobacco Products Liability
Project at Northeastern University School of Law in Boston, noted that,
"We are encouraged that there appears
to be no desire by U.S. Supreme Court to put an artificial cap (such as
never
exceeding a single-digit ratio between punitives and compensatory
damages) on
the level of punitive damage awards, as Philip Morris had strenuously
urged the
court to do.” Edward L. Sweda, Jr., attended the oral argument in this
case last October.
2006
EXCERPTS
from Media
Release,
February 2, 2006, Tobacco Products Liability Project, Northeastern
University School of Law, Boston, Massachusetts, USA, Edward L. Sweda, Jr.,
Senior Attorney, headlined:
Oregon Supreme Court
Affirms $79.5M in Punitive Damages Against Philip Morris
for Wrongful Death of Smoker Jesse Williams
In
an opinion expressing contempt for the lethal business practices of
Philip Morris, the Oregon Supreme Court today [February 2, 2006]
affirmed an appeals court ruling restoring a 1999 punitive damages
award of $79.5 million in the lung cancer wrongful death trial of Jesse
Williams. This opinion demonstrates that when conduct as reprehensible
as that engaged in by cigarette companies is at issue, high punitive
damage awards are available to punish and deter such extreme behavior
despite a 2003 US Supreme Court case known as State Farm, even when the
ratio of punitive to compensatory damages reaches 99 to 1.
IN
THE SUPREME COURT OF THE STATE OF OREGON
MAYOLA WILLIAMS,
Personal Representative of the Estate of
JESSE D. WILLIAMS, Deceased,
Respondent on Review,
v.
PHILIP MORRIS INCORPORATED,
nka PHILIP MORRIS USA INC.,
Petitioner on Review,
and
RJ REYNOLDS TOBACCO COMPANY,
FRED MEYER, INC.,
and PHILIP MORRIS COMPANIES, INC.,
Defendants.
(CC 9705-03957; CA A106791; SC S51805)
On review from the Court of Appeals.
Argued and submitted May 10, 2005.
BACKGROUND
The lawsuit was brought by the family of Jesse Williams, who smoked
Marlboro cigarettes for 47 years, and resulted in a jury finding that
Mr. Williams and Philip Morris were equally at fault for the fatal lung
cancer suffered by Mr. Williams. The jury awarded the
family $800,000
in compensatory damages. In addition, the jury found that Philip
Morris
was guilty of common law fraud for its 50 years of lies and awarded
$79.5 million in punitive damages, much of which, under Oregon law, is
directed to special state funds to benefit victims of crime. The
trial
judge reduced the punitive damages to $32 million and both Philip
Morris and The Estate of Jesse Williams appealed.
The Oregon Court of Appeals rejected Philip Morris's appeal but
reinstated the $79.5 million punitive damages award on June 5,
2002.
Philip Morris appealed to the Oregon Supreme Court but was again
rebuffed. Then the company appealed to the U.S. Supreme Court, which
had issued a decision in 2003 that can restrict awards of punitive
damages that greatly exceed the underlying compensatory damages award (State Farm Insurance Co. v. Campbell).
The nation's high court sent the case
back to the Oregon Court of Appeals so that it could reconsider its
decision to restore the full punitive damages award in light of the
State Farm decision and nullified the restoration of the $79.5 million
award stemming from 2002's decision.
But after applying the appropriate standards for reviewing punitive
damages, on June 9, 2004, the Oregon Court of Appeals found ample
reason to once again restore the jury's $79.5 million punitive damages
verdict against Philip Morris. The Court, at one
point in the decision,
states that, "it is difficult to conceive of more reprehensible
misconduct for a longer duration of time on the part of a supplier of
consumer products to the Oregon public than what occurred in this
case." Philip Morris then appealed to the Oregon Supreme Court
for the
second time. This time, the highest court in Oregon agreed to review
the verdict.
The court quotes State Farm on the appropriate size of punitive
damages: "Single-digit multipliers are more likely to comport
with due process, while still achieving the State's goals of deterrence
and retribution, than awards with ratios in [the] range of 500 to 1,
or, in this case [referring to Campbell v. State Farm], of 145 to 1."
Continuing to quote State Farm, the court noted that the U.S. Supreme
Court, "did acknowledge, however, that even those tentative ratios
might be adjusted up or down. A greater ratio might comport with due
process if 'a particularly egregious act has resulted in only a small
amount of economic damages . . .'."
The court
concludes by excoriating Philip Morris's behavior:
Philip
Morris's conduct here was extraordinarily reprehensible, by any
measure of which we are aware. It put a significant number of victims
at profound risk for an extended period of time. The State of Oregon
treats such conduct as grounds for a severe criminal sanction, but even
that did not dissuade Philip Morris from pursuing its scheme.
In summary, Philip
Morris, with others, engaged in a massive,
continuous, near-half-century scheme to defraud the plaintiff and many
others, even when Philip Morris always had reason to suspect -- and for
two or more decades absolutely knew -- that the scheme was damaging the
health of a very large group of Oregonians -- the smoking public -- and
was killing a number of that group. Under such extreme and outrageous
circumstances, we conclude that the jury's $79.5 million punitive
damage award against Philip Morris comported with due process, as we
understand that standard to relate to punitive damage awards.
Philip Morris will certainly seek to have the decision reviewed a
second time the the U.S. Supreme Court. However, based on the four
prior decisions made by Oregon's courts, all finding Philip Morris's
behavior to be outrageous and unacceptable, it is highly doubtful that
the U.S. Supreme Court will overturn this historic decision.
A recent Working Paper by Tobacco Control Resource Center attorney Sara
D. Guardino and Northeastern University School of Law Professor Richard
A. Daynard entitled "Punishing <http://law.bepress.com/expresso/eps/447>
Tobacco Industry Misconduct: The Case for Exceeding a Single Digit
Ratio Between Punitive and Compensatory Damages, [pdf]" offers
additional support for today's Oregon Supreme Court's decision.
COMMENTARY
Mark Gottlieb, Director of the Tobacco Products Liability Project,
noted:
"This
decision is important because it shows that despite the cigarette
companies' arguments that the ratio of punitive damages to compensatory
damages can never exceed 10 to 1, when the defendant's behavior is as
extreme and reprehensible as Philip Morris's has been, our civil
justice system is capable of sending a message that society will not
tolerate such blatant disregard for health and life."
Regarding the
Altria response to the situation, Edward L. Sweda, Jr., Senior
Attorney,
Tobacco Products Liability Project, on
February 2, 2006, noted the following:
Claiming
that the Oregon Supreme Court today "rejected the U.S. Supreme
Court's holdings regarding punitive damages" and that today's unanimous
ruling in Williams v. Philip Morris,
Inc. et al. "violates the rules set forth in State Farm," (the
United States Supreme Court's 2003 ruling in State Farm Mutual Automobile Ins. Co. v.
Campbell, 538 U.S. 408), Altria Group today issued a statement
that "grossly misrepresents the state of the law regarding punitive
damages," according to Edward L. Sweda, Jr., Senior Attorney for the
Tobacco Products Liability Project at Northeastern University School of
Law in Boston.
In today's ruling, the Oregon Supreme Court specifically noted that the
U.S. Supreme Court's ruling in State
Farm v. Campbell "specifically contemplated that some awards
exceeding single-digit ratios (comparing punitive damages to
compensatory damages) would satisfy due process." The Oregon
Supreme
Court also noted that "single-digit ratios may mark the boundary in
ordinary cases, but the absence of bright-line rules necessarily
suggests that the other two guideposts -- reprehensibility and
comparable sanctions -- can provide a basis for overriding the concern
that may arise from a double-digit ratio."
In its 2003 opinion in State Farm v.
Campbell, the U.S. Supreme Court did not rule that all
double-digit ratio awards in punitive damages violate due process. The
U.S. Supreme Court specifically ruled, in State Farm v. Campbell, 538 U.S. at
418: "We decline again to impose a bright-line ratio which a
punitive
damages award cannot exceed. Our jurisprudence and the principles it
has now established demonstrate, however, that, in practice, few awards
exceeding a single-digit ratio between punitive and compensatory
damages, to a significant degree, will satisfy due process."
Attorney Sweda commented: "The U.S. Supreme Court said 'few' awards - not
'no' awards - could exceed the single-digit ratio. The Oregon Supreme Court today
eloquently explained why Philip Morris' conduct was so 'extraordinarily
reprehensible' that it fit into the category of those 'few' cases where
double-digit punitive damage awards do satisfy due process."
Sweda concluded: "If Philip Morris wants to try to justify its
outrageous and reprehensible conduct, let it try. But its statement
that the Oregon Supreme Court somehow 'rejected the U.S. Supreme
Court's holdings regarding punitive damages' is demonstrably false."
Richard
Boeken case:
EXCERPTS from knbc.com,
July 9, 2007, headlined, "Judge Rules in Favor of Ex-Smoker's Son
Against Philip Morris"; writer not given.
A Los Angeles judge ruled in favor of a
15-year-old boy on an issue related to his lawsuit
against Philip Morris, which he claims is liable in the death of his
father, a
longtime smoker, court papers showed Monday.
Dylan
Boeken's father, Richard Boeken, made headlines in 2001 when he won a
$3
billion judgment against Philip Morris USA Inc. -- a sum subsequently
cut to
$55 million.
Richard
Boeken died in January 2002 at age 57, seven months after the verdict
in his
case. The disease had spread to his spine and brain.
Boeken's
widow, Judy, and son filed a wrongful death case against Philip Morris
in June
2006. Their attorney, Michael J. Piuze, maintained most of the issues
were
decided in the first trial. He said the jury should only have to
determine if
Boeken died of lung cancer and, if so, what his son's damages are.
Philip
Morris wanted a complete trial on all the issues.
Los
Angeles Superior Court Judge David L. Minning took the matter under
submission
April 24 and ruled Monday in favor of Dylan Boeken.
"This
court concludes that (Philip Morris) has not demonstrated that
relitigation of
issues, other than issues of causation and damages, is appropriate in
this
case," Minning stated in a two-page ruling.
Dylan
Boeken's case is set for trial Jan. 7 [2008].
Judy
Boeken is no longer part of the lawsuit because Minning issued a
nine-page
ruling in February granting a Philip Morris motion to throw out her
claims
entirely. Piuze is appealing that decision.
The
current lawsuit is the third filed by members of the Boeken family
against Philip
Morris. Richard Boeken sued the company for personal injury in March
2000, five
months after the two-pack-a-day Marlboro smoker was diagnosed with lung
cancer.
Richard
Boeken began smoking at age 13, Piuze said [buying cigarettes from a
vending machine].
After
a
trial of Richard Boeken's lawsuit, a jury in June 2001 directed Philip
Morris
to pay him $3 billion, that year's largest award according to a survey
by
Lawyers Weekly USA magazine.
Judge
Charles McCoy cut the award to $100 million that August.
Appeals
were then filed by both sides. In September 2004, a panel from the 2nd
District
Court of Appeal affirmed the judgment but further reduced the damages
to $50
million.
Both
sides filed petitions, asking the panel to rehear the matter. The case
was
reheard in February 2005, but the justices later affirmed the $50
million award
less than two months later.
Piuze
said the tobacco company ultimately paid $55 million, plus many
millions of
dollars more in interest.
EXCERPTS from The Los Angeles Times,
March 21,
2006, headlined,Widow's Legal Battle With Philip Morris
Ends, writer, Myron Levin
Five
years after a landmark defeat in a Los Angeles courtroom, tobacco
giant Philip Morris USA has exhausted its appeals
and will have to pay record damages
of more than $82 million to the widow of a longtime smoker of
its Marlboro cigarettes.
Without comment, the U.S. Supreme Court on Monday refused to review a
2001 verdict in the case filed by Richard Boeken
of Topanga. Boeken, who
began smoking in his teens, died of cancer at 57,
shortly after the verdict
in the first suit by an individual smoker ever
tried in Los Angeles.
Although cigarette makers have agreed to some major settlements,
including $246 billion to end lawsuits by the states,
in more than 50 years of litigation,
they have had to write checks to only a handful of
individual smokers.
The Boeken award - consisting of $5.54 million in compensatory damages,
$50 million in punitive damages and more than
$26 million in interest -
will be the largest recovery by an individual to
date.
It will eclipse the previous record payment of $16.7 million last year
to a former smoker from Glendale. Philip Morris,
a unit of Altria Group Inc.
and the top U.S. cigarette maker, lost that
case too.
Boeken's widow, Judy Boeken, could not be reached for comment. But her lawyer,
Michael Piuze of Los Angeles, said she "is happy that the litigation's
over."
Ed Sweda, senior attorney for the Boston-based Tobacco Products
Liability Project, which encourages lawsuits against
the tobacco industry, said
the Supreme Court's decision not to accept the
appeal "demonstrates that
tobacco litigation remains a viable - and still
emerging - strategy to promote
the public health."
Still, the award is a wisp of its original self. Outraged jurors in Los
Angeles County Superior Court had ordered
Philip Morris to pay Boeken $3 billion
in addition to compensatory damages in June 2001 after finding
the company guilty of fraud, negligence,
misrepresentation and selling a defective
product.
Weeks later, the trial judge sliced the punitive award to $100 million.
A California appeals court then trimmed it to
$50 million, despite its
finding that Philip Morris' conduct was "extremely
reprehensible."
"The very conduct that injured Boeken was directed at all smokers in
the United States, repeated over many years
with knowledge of the risk to
human life and health," and demonstrated
"intentional deceit," the state
appeals court ruled last year.
But the panel also cited a 2003 U.S. Supreme Court opinion that
punitive damages usually should not exceed nine
times the compensatory damages.
That ratio was reflected in the state appeals
court ruling.
Piuze had argued that the ratio was a guideline, not a rule, and should
not protect a company that he said was
responsible for millions of deaths.
Although the court's decision Monday was a victory for the plaintiff,
Piuze said he was not satisfied "with the end
result, which is a penalty of
one half week of earnings" for Philip Morris.
Legal analysts believe that the court may
be more likely to consider an appeal
of another verdict that went well beyond the 9-to-1 guideline.
It's an Oregon case in which the $80-million award against Philip
Morris includes $79.5 million in punitive damages
and $521,000 in compensatory damages
- a ratio of more than 152 to 1.
The Oregon Supreme Court affirmed the verdict last month, setting the
stage for a last-ditch appeal to the nation's
highest court.
The Boeken verdict was among a string of four straight big defeats for cigarette
makers in Los Angeles and San Francisco superior courts.
EXCERPTS from Bloomberg News, March 20, 2005,
headlined, Altria Rejected by U.S.
High Court on $55 Mln Award, writer, Greg Stohr, Chris Burritt
contributing, editor Asseo.
The
U.S. Supreme Court rejected Philip Morris USA's appeal of a $55.5 million
award to the family of a California lung cancer victim,
clearing the way for the largest court-ordered payment
in an individual smoking
lawsuit.
The justices, acting in the case of smoker Richard Boeken, made no
comment in turning away an appeal by Philip Morris,
an Altria Group Inc. unit
that is the world's largest cigarette maker. The
court in Washington also rejected
a separate appeal by Boeken's widow that said a California
state appeals court went too far in cutting the
$3 billion originally awarded
by a jury.
The payment will be more than five times the previous record, a $10.5 million
award paid by Philip Morris last year in another California
case. It will be the fifth verdict ever paid by the
industry in an individual
smoking case, according to Edward L. Sweda Jr., a
lawyer at the anti-smoking
Tobacco Products Liability Project in Boston.
"This helps to show that litigation remains a viable strategy to hold
the tobacco companies responsible for their
reprehensible misconduct," Sweda said.
Boeken
began smoking two packs of Marlboros a day in 1957 when he was
13. The former construction worker and
securities salesman was diagnosed
with lung cancer in 1999 and sued Philip Morris
in 2000, alleging negligence, false
representation and conspiracy. After he died in 2002 at age 57,
his wife continued to press the case as trustee
for his estate.
Judy Boeken argued in court papers that Philip Morris, which is based
in Richmond, Virginia, deserved to be punished
for years of public
deception about the health dangers of smoking and for
a marketing campaign
directed at children.
The $3 billion jury award "was imposed to punish a defendant which for decades
pursued an official corporate fraud policy against Californians while
knowing vast numbers of its targets would suffer and die as a
result," she argued.
Philip
Morris won a pair of major legal victories last year. The
Illinois Supreme Court overturned a $10.1 billion
award to smokers of "light" cigarettes,
and a federal appeals court in Washington said the Justice Department
can't seek $280 billion from cigarette makers in a
racketeering suit. The company is awaiting a Florida
Supreme Court ruling on a $145 billion
award in that state.
Altria Chief Executive Officer Louis Camilleri said last year that the company
needed a successful resolution of those three cases to proceed
with an effort to separate its tobacco and food
businesses.
EXCERPTS from The Richmond Times Dispatch
[Virginia], March 21, 2006, headlined, Tobacco judgment allowed to stand, Court won't review $50 million award
against Philip Morris, From Wire and Staff Reports, contribution
from John Reid Blackwell.
The [U.S.] Supreme Court
refused yesterday to consider tossing
out a $50 million damage award to the family of a
two-pack-a-day smoker who
died of cancer.
Henrico County, Va.-based Philip Morris USA, which controls about half
the U.S. cigarette market, had asked the
justices to declare the award unconstitutionally
excessive and to rule that the company should have
been shielded from some of the smoker's claims.
The justices declined, without comment.
Richard Boeken, who initially won $3 billion in punitive damages, was
57 when he died in 2002, a year after a
California jury found Philip Morris guilty
of negligence, misrepresentation, fraud and selling a defective product.
The damage award was reduced to $100 million, and then cut in half by
an appeals court.
Edward
Sweda, senior attorney for the Tobacco Products Liability
Project at Northeastern University, said the case
shows that smokers' lawsuits are still
a problem for cigarette makers, despite "rosy" predictions by Wall Street
analysts that the threat is lifting.
Lawyers
for Boeken's family had asked the justices to consider "Philip Morris's
immensely reprehensible, immensely profitable fraud scheme perpetuated
for decades."
Philip Morris lawyer Andrew Frey told the justices that the company did
not conceal information about low-tar
cigarettes. The company, which is
part of New York-based Altria Group Inc., wanted
the high court to use the case
to clarify the formula for deciding punitive
damages.
Boeken's
case reveals a highly addicted smoker who took up the habit at
13 and tried everything from hypnosis to
classes and nicotine gum in an
effort to quit. He switched to Marlboro Lights in
the belief they were safer.
EXCERPTS from The
Los Angeles Times, August 12, 2005,
headlined, Philip
Morris Vows to Appeal Judgment to U.S. High Court, writer, Myron
Levin.
Philip Morris USA said
Thursday that it would ask the U.S. Supreme
Court to
reverse a California ruling that has brought the company a step closer
to
paying record damages to the widow of a deceased smoker.
The California Supreme Court refused Wednesday to hear
an appeal of a
$55.4-million judgment against the top U.S. cigarette maker, a unit of
Altria Group Inc. In June 2001, Philip Morris was found guilty of
negligence
and fraud in a lawsuit filed by Topanga resident Richard Boeken, a
former
Marlboro smoker then afflicted with lung cancer who died a few months
later
at 57.
Unless the U.S. high court agrees to intervene, Philip
Morris will have
to
pay the judgment, plus at least $20 million in interest, to his widow,
Judy
Boeken.
Although tobacco companies have agreed to pay major
out-of-court
settlements
- including about $246 billion to resolve litigation with the states -
they
have paid barely a handful of judgments to individuals with
smoking-related
illnesses.
To date, $16.7 million is the most received by a
successful
plaintiff.
Philip Morris paid the sum to Patricia Henley, 58, of Glendale in
March,
when the U.S. Supreme Court's refusal to review the case ended a
seven-year
legal battle. The Henley award consisted of $10.5 million in
compensatory
and punitive damages and about $6.2 million in interest.
In the first suit by a smoker ever tried in Los
Angeles, a Superior
Court
jury stunned Philip Morris by awarding Boeken $3 billion in punitive
damages
on top of $5.54 million in compensatory damages. The trial judge,
Charles W.
McCoy Jr., shaved the punitive award to $100 million. Then in September
-- in
the ruling that the state Supreme Court has just declined to review - a
state appeals panel upheld the liability findings but cut punitive
damages
to $50 million.
In that ruling, the appeals court affirmed that Philip
Morris had been
guilty of "reprehensible conduct established by the evidence, repeated
over
four decades, and resulting in the death of Boeken."
In the motion filed with the appeals court, Philip
Morris said it would
raise several issues with the justices, including whether the company
was
protected from liability by federally required warning labels on
cigarette
packs and whether the $50 million in punitive damages was
"constitutionally
excessive."
But the cigarette maker's prospects are uncertain at
best because the
Henley
appeal raised similar issues and the justices declined to hear it.
The plaintiff and Philip Morris were both disappointed
by Wednesday's
refusal by the state Supreme Court to hear the Boeken appeal, said
Boeken
attorney Michael Piuze. Both sides had challenged the appellate court
ruling.
Piuze had argued that the appeals court erred in
cutting the award,
saying
it had misapplied a U.S. Supreme Court decision meant to limit punitive
damages. That 2003 decision held that punitive damages typically should
not
exceed nine times the compensatory damages - the exact ratio applied in
the
Boeken case.
But Piuze said this was a guideline, not a rule, that
should have no
bearing
on Philip Morris, a company that Piuze said was responsible for
hundreds of
thousands of deaths.
Patricia Henley defeats Philip Morris!
EXCERPTS
below from: The Los Angeles
Times, Reuters, L.A. Daily News, and Market Watch.
EXCERPTS from The Los Angeles Times, March 22, 2005, headlined:
"High Court Turns Away Philip Morris: A smoker in Glendale who
developed cancer is set to collect more than $16 million in
damages." Writer, Myron Levin.
The U.S. Supreme Court on Monday
rejected an appeal by Philip Morris,
setting
the stage for the tobacco giant to pay more than $16 million to a Glendale woman
who
contracted lung cancer. It would be the largest payment and the first
punitive
damages ever paid to an individual smoker.
The court's refusal to review the case was the last gasp for Altria
Group Inc.'s Philip
Morris,
which had been fighting for six years to overturn the damages award to
Patricia
Henley.
Henley
was diagnosed with lung cancer
in 1998
after more than 30 years as a Marlboro smoker. In February 1999, a jury
in San
Francisco Superior Court decreed that the company had lied about the
risks and
addictiveness of smoking and was responsible for Henley's
cancer, and awarded her $51.5 million.
Although the award eventually was reduced to $10.5 million, Philip
Morris will
have to write a check for $16.7 million because of interest accrued
during the
years of appeals. Henley, 58, said
she planned
to give most of the money to a foundation to teach children about the
ills of
smoking and treat kids with respiratory ailments and cancer.
"This is a good day for the children," said Henley, who had long
complained that her case would never end. "This is punishment money
from
the tobacco industry, but it needs to be turned into money that's going
to help
people."
Henley's
original jury award was three
times
what her lawyer, Madelyn Chaber, had asked for. But the victory was
just the
beginning of an endurance contest. The case pingponged through the
legal
system, three times going back and forth between the state Court of
Appeal and
the California Supreme Court to resolve various issues.
Along the way, the original award was reduced twice — first to $26.5
million, then to $10.5 million. But the state Supreme Court in
September
refused Philip Morris' request to overturn the liability finding,
prompting the
company to seek a reprieve from the U.S. Supreme Court.
Anti-smoking groups hailed Monday's decision, noting how few individual
plaintiffs have actually collected money from cigarette makers.
"At long last, Philip Morris will have to pay Patricia Henley because
of
its history of lies, fraud and other corporate wrongdoing," said Edward
L.
Sweda Jr., senior attorney for the Tobacco Products Liability Project,
a
Boston-based group that promotes litigation against cigarette makers.
Over the years, cigarette makers have lost in the trial court about 20
times,
but most of these defeats are in various stages of appeal or have been
reversed.
Henley is to become only the fourth individual smoker, and the first
from California,
to collect a
damages award. In the other three cases, tobacco companies paid
compensatory
damage of $196,000 to more than $3.4 million to three Florida smokers.
Cigarette maker Lorillard Inc., a subsidiary of Loews
Corp., has paid at
least half
a dozen settlements and judgments to people who contracted
mesothelioma, an
asbestos-related cancer, after smoking Kent cigarettes during a period
in the
early 1950s when its patented Micronite filter contained a particularly
dangerous form of asbestos. Legal observers consider these asbestos
lawsuits,
rather than smoking cases per se.
Chaber, Henley's lawyer, brought some
of the
Micronite cases too. "I feel like it's a victory for the little person
against Big Tobacco," Chaber said of Monday's decision.
Henley's
$10.5-million award consisted
of $1.5
million in compensatory and $9 million in punitive damages. After the
trial
judge had cut the jury's original punitive damages award to $25 million
from
$50 million, appellate judges reduced it further to conform with a 2003
ruling
by the U.S. Supreme Court that punitive damages generally should be no
more
than nine times the compensatory award.
Henley said Monday that after paying taxes and legal fees, she would
keep the
compensatory damages to live on and donate the rest to the Patricia
Henley
Foundation, based in Santa
Barbara.
Shares of Altria Group fell $1.44 on Monday to $63.28 on the New York
Stock
Exchange.
EXCERPTS
from Reuters, March 21, 2005,
headlined, "Court
Rejects Philip
Morris $9 Million Award Appeal"; no writer noted.
The
U.S Supreme
Court on Monday rejected an appeal by Altria Group Inc.'s Philip Morris
USA in a California case involving $9 million in punitive damages
awarded to a former longtime smoker who has lung cancer.
Without
comment, the justices declined to consider the tobacco company's appeal
arguing that the case should be reviewed by the Supreme Court or at
least sent back for further consideration.
The
case
involved Patricia Henley, who sued Philip Morris after developing lung
cancer. Her attorneys argued at trial that there were no warnings on
cigarette packages when she began smoking in 1961 and that the company
had hidden evidence about the health risks of smoking and its
addictiveness.
A
jury in 1999
initially awarded her $1.5 million in compensatory damages and $50
million in punitive damages, but the trial judge cut the punitive
damages award in half.
After
a U.S.
Supreme Court ruling in 2003 that put new limits on punitive damages, a
state appeals court cut the amount awarded to Henley to $9 million.
The
Chamber of
Commerce business group supported the appeal. But attorneys for Henley
said the issues actually decided by the California courts were not
worthy of Supreme Court review.
EXCERPTS from the
L.A. Daily News, Mrch 21, 2005, headlined, "Woman's tobacco judgment
upheld"; writer Naush Boghossian.
Diagnosed
in 1997
with lung cancer and given just four months to live,
Patricia Henley decided to spend her last days fighting the Philip
Morris tobacco company so that others would know the truth about the
dangers of smoking.
Now,
seven
years after filing suit -- and with her cancer in remission -- the
former singer can boast that she is one of the few people to go up
against Big Tobacco -- and win.
The
Supreme
Court declined Monday to consider reducing a $10.5 million judgment
awarded to the Glendale resident. Hers is a landmark case: the first
judgment against Philip Morris; the first anti-tobacco case in
California to result in an award; and the first case in the United
States in which punitive damages were upheld against a tobacco company.
"People
have
asked me, Why did you think you had the right to sue this company?" she
said in an interview. "I had no other choice.
"This
was the
only course I had to prove what I knew, what they were doing to injure
people, to get children addicted to this product so they have another
customer for 10, 15, 20 years," said Henley, who is 58 and smoked
Marlboros for 35 years.
"Believe
me,
fighting for this doesn't make you a hero. It makes you a human being."
Henley
plans to
use the $1.5 million in compensatory damages to pay medical bills. The
$9 million in punitive damages will go to the Patricia Henley
Foundation, which uses the arts to teach children about the hazards of
smoking and also helps youngsters suffering from cancer, asthma and
other diseases caused by smoking.
In
1999, a jury
in San Francisco ordered Philip Morris to pay Henley $51.5 million -- a
judgment that was cut by the trial judge to $26.5 million.
In
2003, a
state appeals court reduced the award to $10.5 million because of the
U.S. Supreme Court's ruling limiting punitive damages that greatly
exceeded a plaintiff's actual damages.
"Not
only did
she whack big corporation, but she is a living testament to will and
hope," said friend Linda Laurie, who's working with Henley on her
nonprofit foundation. "This is an amazing woman, a strong-willed woman
and a woman of great heart."
Bill
Ohlemeyer,
vice president and associate general counsel of Philip Morris USA, said
the company was disappointed that the nation's high court had declined
to review the judgment.
"It
won't
prevent us from vigorously and, we think, successfully defending
against other cases in the state," he said, noting that Philip Morris
has successfully defended itself against the past four cases tried in
California.
"It
does not
set any precedent or have any legal effect on any legal case in
California. Each of these cases rises or falls on its own facts. Juries
for the most part agree that people who smoke are aware of the risks."
But Henley's
attorney, Madelyn Chaber, argues that the reverberations of the
decision will be felt for years to come.
"I think it's
huge. They can downplay it all they want, but the reality is they took
this case as far as they could go and they lost," she said.
"I think that
this will encourage other people that they can pursue a case, that the
tobacco companies are not invulnerable. And I think it will take less
and less time over the years, because a lot of law has been written
because of this case, and there's a road map for other cases."
Henley
said she
was just 15 when she smoked her first cigarette. She was at a dance
with a boy who smoked Marlboros, and she wanted to impress him.
By
the time the
surgeon general released the first warning about the dangers of
cigarettes in 1964, she was already hooked, smoking two packs a day.
As she grew
older and concerns continued about the dangers of cigarettes, she
called Philip Morris and asked whether she had anything to worry about.
Henley
said she
was reassured that cigarettes were safe, but that she should switch to
"lights" if she was still worried. She did, and her habit grew to 3
packs daily until she quit cold turkey in 1997.
Two
weeks later
-- after going to the doctor with what she thought was pneumonia -- she
was diagnosed with inoperable lung cancer and told she had four months
to live.
About
that
time, after reading about a
comment made by the CEO of R.J. Reynolds,
she decided to hire an attorney and spend her last days fighting.
"It said their
focus is on the young, the poor, the black and the stupid," she said.
"Based on that, I fell in the category of stupid. And that's when I
hired an attorney."
With
the battle
behind her, Henley said, she plans to dedicate herself to her
foundation and write a book -- not about the tobacco industry, but
about strong women.
The
mother of
two said she doesn't know how or why she survived the disease, but that
now her mission is to get people to realize the truth about the dangers
of smoking.
"There was a
sweetener that killed one rat, and they took it off the market," she
said. "But they continue to sell this product that is proven to kill
people. Where does that make any sense?"
To
donate to or get
involved with the Patricia Henley Foundation, e-mail lindalaurie@cox.net <mailto:lindalaurie@cox.net> .
EXCERPTS from Market Watch, March 21, 2005,
headlined, "Altria lower on Supreme Court ruling"; writer, Russ Britt.
Shares of Altria Group
Inc. fell Monday as
the U.S. Supreme Court declined to review its appeal to overturn a
$10.5 million judgment brought against the tobacco giant by a
California smoker who contracted lung cancer.
A component of the Dow Jones Industrial Average, Altria
lost $1.44, or
2.2 percent, to $63.28 at the close.
Patricia Henley filed suit against the company,
alleging that
advertising geared toward youths by Altria's Philip Morris USA unit
encouraged her to take up smoking.
Henley originally won her case in 1999 in San Francisco
for $51.5
million. That award was reduced twice.
Justices declined to hear the case, and offered no
further comment.
Bill Ohlemeyer, the company's vice president and
associate general
counsel, said the court's move was not surprising since justices rarely
choose to hear a case. He added the case should have little effect on
other tobacco liability litigation the company faces.
The Tobacco Products
Liability Project said Altria is simply being held
accountable for its actions.
"At long last, Philip
Morris will have to pay Patricia Henley because
of its history of lies, fraud and other corporate wrongdoing," senior
attorney Edward Sweda said in a press release. "The payment to Ms.
Henley, though long overdue, is most welcome."
Leslie
Whiteley
October
15, 2009
How Much is a Life Worth, to the
tobacco companies, to society?
October 15, 2009, News Release, Tobacco Products Liability Project,
Edward L. Sweda, Jr.
Appeals Court
Upholds California Jury’s Multi-Million Dollar Verdict against R.J.
Reynolds and Philip Morris.
The family of Leslie Whiteley, a smoker who
smoked her first cigarette in 1972 at age 13, was diagnosed with lung
cancer in 1998 and who died in
July 2000 at the age of 40,
won a major victory on Wednesday when the Court of Appeal of the State
of California, First Appellate District, Division Two, upheld the
jury’s awards, rendered in 2007, for her estate: $225,000
(for past economic damages); $2,345,964 (on wrongful death claims); and
$250,000 (in punitive damages against R.J. Reynolds on the false
promise cause of action). The jury also awarded Leonard Whiteley,
Leslie’s widower, $30,000 for pre-death loss of consortium.
“I
am delighted for the Whiteley family that the Court of Appeal has
rejected each of the tobacco companies’ arguments to overturn the
verdict. The family is closer to the day when these companies
will be
held accountable for their reprehensible wrongdoing,” said Edward L.
Sweda, Jr., Senior Attorney for the Tobacco Products Liability
Project (TPLP), which is based at Northeastern University School of Law
in Boston.
The decision is at http://www.courtinfo.ca.gov/opinions/nonpub/A119345.PDF
EXCERPTS
from The
Recorder, May 3, 2007, headlined, "Calif. Smoker Gets Higher
Compensatory Damages in
Second Trial," writer Matthew Hirsch
For the
second time
in about seven years, a San Francisco jury has
found two major tobacco companies liable for damages related to Leslie
Whiteley's habit of smoking cigarettes.
In
court
Wednesday, a jury recommended
Whiteley's husband [Leonard Whiteley] get about $2.5 million in
compensatory damages, more than
the $1.7 million in compensatories attorney Madelyn Chaber helped the
Whiteleys
win the first time around, before a higher court ordered a retrial.
Back
in 2000,
the jury handed him and his wife
a total of $21.7 million -- including $20 million in punitives, $10
million
each against two tobacco companies.
But
that was
before an appeal court overturned
the entire verdict in 2004, and substantially limited the plaintiffs'
case
going forward. In Whiteley v. Philip Morris,
117 Cal.App.4th 635, the 1st District Court of Appeal concluded the
defendants
could not be held liable for certain conduct during a 10-year window
closed by
the legislature beginning in 1988.
As
San
Francisco Superior Court Judge Robert
Dondero read from five verdict forms Wednesday, it was immediately
clear Chaber
had convinced jurors that both tobacco companies had made "false
promises" and committed "intentional" and "negligent"
misrepresentations in statements about the dangers of smoking
cigarettes.
A
smoker since
age 13, Leslie Whiteley sued in
1999 claiming the tobacco companies misled her about the dangers of
their
products. She died soon after the first trial ended, at age 40.
But
in order
to get punitive damages, Chaber
needed nine of the 12 jurors to answer any of six questions regarding
the
companies' conduct in the affirmative.
The
plaintiffs got no more than
eight votes on
all but one of those questions. The vote on a single finding of malice
against
R.J. Reynolds came out 9 to 3. Philip Morris escaped exposure on the
same
question by a vote of 8 to 4.
Dondero gave
Chaber until today
to prepare
discovery arguments before presenting her case for punitive damages. On
Wednesday, Chaber told the judge she wants R.J. Reynolds to turn over
historical information about the company's market capitalization.
Updated
October 15, 2009