tobacco litigation

Philip Morris USA Inc. v. Williams

Issues

  1. Among the three guideposts that courts should consider when reviewing punitive damages, can the high degree of reprehensibility of the defendant’s conduct and the similarity between the punitive damages award and authorized civil penalties in comparable cases supersede the consideration that punitive damages should be proportionate to the harm suffered by the plaintiff?
  2. Can a jury punish a defendant for harms suffered by non-parties without violating due process?
Court below

 

Mayola Williams brought suit against Philip Morris U.S.A. alleging that Philip Morris fraudulently and negligently caused the death of her husband, who smoked Philip Morris cigarettes for over forty years. The Oregon Supreme Court affirmed a trial jury’s punitive damages award of $79.5 million. Philip Morris contends that the punitive damages award was unconstitutionally excessive because it was not reasonably related to Mr. Williams’ injuries. Williams argues that the Oregon Supreme Court was within its discretion to affirm the trial jury’s punitive damages award because the award conformed with many of the guidelines for determining reasonable damages, and those guidelines are the most important factor. This decision will impact punitive damages calculation in product liability and other tort cases.

Questions as Framed for the Court by the Parties

  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.
  2. Whether due process permits a jury to punish a defendant for the effects of its conduct on non-parties.

Jesse Williams died from cancer as a result of smoking Philip Morris brand cigarettes for over forty years. Williams v. Philip Morris, 340 Or. 35, 38 (2006).

Additional Resources

  • Charles Lane, Justices To Rule on Punitive Damages, Wash. Post, May. 31, 2006, at D01
  • Brief of the American Tort Reform Association as Amicus Curiae in Support of Petitioner, Philip Morris USA v. Williams, 126 S.Ct. 2329 (2006) (No. 05-1256).
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Watson v. Philip Morris Companies, Inc.

Issues

Where no other reason exists for a federal court to have jurisdiction in a case, is a defendant corporation entitled to have the case heard in federal court because that corporation should be considered a “person acting under a federal officer” where the conduct in question occurred in a field which is heavily regulated by the federal government?

 

Philip Morris removed a class action tobacco lawsuit from an Arkansas state court to the Federal District Court for the Eastern District of Arkansas. Plaintiffs Watson and Lawson sought to remand the case to state court, but their motion was denied. The Eighth Circuit held that Philip Morris was a corporation qualifying as a “person acting under a federal officer” and thus entitled to removal under 28 U.S.C. § 1442(a)(1). The Supreme Court takes up the question of whether parties operating in an arena of heavy federal regulation qualify under this federal officer removal statute or, to the contrary, if the statute’s origins and history preclude such interpretation.

Questions as Framed for the Court by the Parties

Whether a private actor doing no more than complying with federal regulation is a “person acting under a federal officer” for the purpose of 28 U.S.C. § 1442(a)(1), entitling the actor to remove to federal court a civil action brought in state court under state law.

Lisa Watson and Loretta Lawson are smokers who purchased “light” cigarettes from tobacco company Philip Morris. Watson v. Philip Morris Companies, Inc., 2003 WL 23272484 *1 (E.D. Ark 2003) (not reported in F. Supp.2d). Watson and Lawson, and the class of individuals they represent, have sued the Philip Morris company for false advertising with regard to these purchased cigarettes, specifically, the Marlboro Lights and Cambridge Lights brands. Id.

Additional Resources

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