How Much Liability Is Too Much Liablity For Big Tobacco?
Tuesday, October 31, 2006SUSIE GHARIB: Meanwhile, in another tobacco case, the Supreme Court is being asked to decide a key question today. Just how much is too much? The high court heard arguments on whether a $79.5 million punitive damage award in an Oregon tobacco case is excessive. As Stephanie Dhue reports, the case involves a smoker who died of lung cancer.
STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: Mayola Williams says she came to court today to fulfill her husband's dying wish. He wanted to bring public attention to the fraud he said Philip Morris engaged in with a 40-year campaign to undercut the dangers of smoking.
MAYOLA WILLIAMS, WIDOW: He believed so much in what they -- that they wouldn't sell a product that would harm him.
DHUE: In 1999, an Oregon jury found Philip Morris liable for Jesse Williams' death, and awarded his widow more than $800,000 in compensatory damages. In addition, the jury awarded $79.5 million in punitive damages, a 97-1 ratio Philip Morris argues is excessive.
In court today, an attorney for the tobacco company argued that the Oregon courts made a mistake by letting the jury consider harm to people other than Williams. Both before the justices and on the steps outside, Mayola Williams' attorney argued that was the right thing to do.
ROBERT PECK, PRESIDENT, CENTER FOR CONSTITUTIONAL LITIGATION: The court has specifically said that you can consider harm to others in deciding how reprehensible the conduct was. When counsel in closing arguments to the jury said, think about all of those that they have been affected, that is precisely what he was asking them to do.
DHUE: Justices questioned if juries should take into account the possible harm suffered by many people when awarding punitive damages for the harm suffered by one person. Justice Breyer said he is worried about giving juries the ability to award damages to people not involved in the case, saying, quote: "It is this 'anything goes' that I find disturbing," endquote.
Business groups are hoping the high court uses the case to set more limits on punitive damage awards.
THEODORE BOUTROUS, ATTORNEY, PRODUCT LIABILITY ADVISORY COUNCIL: It would be a very important step in the right direction for controlling these arbitrary punitive damage awards if the court squarely held that it is improper to punish for third-party harm and conduct not relating to the individual.
DHUE: Before the arguments today, there were some expectations that the court would use this case to establish clear limits on the amount of punitive damages. But the justices didn't question the amount of this award, only how it was reached.
Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.
