Posted on 10/06/2003 9:57:33 AM PDT by CounterCounterCulture
By GINA HOLLAND, Associated Press Writer
WASHINGTON - The Supreme Court on Monday threw out an $80 million verdict against cigarette-maker Philip Morris.
The verdict, for the family of an Oregon janitor who died in 1997 of lung cancer, should be reviewed by lower courts to ensure it is not unconstitutionally excessive, justices said.
The court's action was encouraging for businesses, which hope a Supreme Court ruling earlier this year will lead to reductions in large punitive damage verdicts.
It was the second victory for Philip Morris in its legal battles with the family of Jesse D. Williams, who accused the company of concealing information about the dangers of smoking. Williams started smoking in the 1950s when serving in the Army in Korea, and later he smoked three packs of Marlboros a day.
After a jury in 1999 ordered the company to pay the Williams family $79.5 million in punitive damages, the judge reduced the award to $32 million. A state appeals court reinstated the punitive damages award last year.
The Supreme Court ordered Oregon courts to review the judgment, in light of their ruling earlier this year that a jury went too far in ordering an insurance company to pay $145 million over the way it handled claims from a car accident.
Andrew Frey of Washington, an attorney for Philip Morris, had told the court that like the State Farm judgment, the verdict against Philip Morris was out-of-line.
Robert Peck of Washington, one of the Williams' lawyers, said that by setting aside the judgment, the Supreme Court would be "inviting every unhappy punitive damage defendant" to file appeals.
Jesse Williams' family said he kept smoking because he did not believe a company would sell something that was truly harmful. The case is Philip Morris v. Williams, 02-1553.
Also Monday, the court overturned a $3 million award to the widow of a man killed in a car acccident in Kentucky. The award was about 13 times the compensatory damage award. Charles Clark had pulled his Dodge pickup truck into the path of a police cruiser in Gray, Ky., in 1993. The case is Chrysler Corp. v. Clark, 02-1748.
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