Court Throws Out Award Against Philip Morris
The Supreme Court threw out a $79.5 million verdict that ordered Philip Morris to pay a smoker's widow $79.5 million. The ruling is promising news for other businesses looking to set stricter limits on big-dollar verdicts. However, the ruling did not address Philip Morris's argument that the settlement was unconstitutionally large. Philip Morris and its supporters had hoped that the court would limit the amount that could be awarded in future punitive damage cases.
Court Nixes Award Against Philip Morris
Justice Stephen Breyer said that the award given to Mayola Williams could not stand because a jury only can punish a defendant for the harm done to the person filing the lawsuit, not to others whose cases were not before it. "To permit punishment for injuring a nonparty victim would add a near standardless dimension to the punitive damages question," said Breyer. Philip Morris had said that the Oregon jury who had made the original ruling had been encouraged to punish Philip Morris for health problems suffered by all the Oregonians who had suffered health problems as a result of smoking. Mayola Williams had argued that the award was appropriate because it punished Philip Morris because it punished the company for "massive market-directed fraud" that led people into thinking that cigaretters were not dangerous.
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