Personal Injury & Torts
Aug. 4, 2006
$28 Million In Punitives Await Ruling
A $28 million award against Philip Morris in a sick-smoker case remains in limbo while the U.S. Supreme Court re-examines limits on punitive-damages awards.
Daily Journal Staff Writer
On Wednesday, the California Supreme Court voted 6-0 to hold off its review of the Los Angeles case until the nation's high court issues new guidelines in the case of a sick smoker from Oregon who won a large award against Philip Morris.
California's appellate courts have slashed several punitive-damages awards in light of a landmark 2003 ruling from the U.S. Supreme Court that significantly limited punitive-damages awards.
In State Farm Mutual Automobile Insurance Co. v. Campbell, 123 S.Ct. 1513, the high court held that, in most cases, awards exceeding a 9-1 ratio of punitive to compensatory damages would violate the Constitution's Due Process Clause.
But the U.S. Supreme Court indicated in May that it intends to revisit the issue. The justices agreed to hear an appeal by Philip Morris challenging a $79.6 million punitive-damages award to the widow of an Oregon smoker. Philip Morris v. Williams, 05-1256.
In the California case, smoker Betty Bullock accused the cigarette giant of misleading the public about the harms of cigarettes and stating that smoking was not linked to lung cancer. Bullock v. Philip Morris, S143850.
In 2002, a Los Angeles jury awarded smoker Bullock $850,000 in compensatory damages and $28 billion in punitive damages. The trial court later reduced the punitive-damages award to $28 million.
The 2nd District's ruling upheld that award in a divided April decision, concluding that Philip Morris' conduct was "highly reprehensible."
Dissenting Justice Patti S. Kitching argued that the award is "a grossly excessive punishment" and violates the 14th Amendment.
On appeal to the California Supreme Court, Philip Morris has argued that $28 million is excessive and asked the justices to reduce it in light of the Campbell ruling.
Bullock's attorney has countered that the jury's initial $28 billion award should be reinstated. Bullock died in February 2003, and her family is pursuing the case.
Chief Justice Ronald M. George was absent from Wednesday's weekly closed-door conference and did not participate in the vote.
Itir Yakarn
For reprint rights or to order a copy of your photo:
Email
Jeremy_Ellis@dailyjournal.com
for prices.
Direct dial: 213-229-5424
Send a letter to the editor:
Email: letters@dailyjournal.com