Individual lawsuits, which had been unsuccessful for more than four decades, have scored impressive recent wins. In 1999, there were two jury verdicts against Philip Morris, totaling $130 million in punitive damages (subsequently reduced by a judge to $57 million). These amounts were added to the compensatory damages to punish past wrongdoing and deter other tobacco companies. In 2005, a jury found Philip Morris liable for $17.1 billion in punitive damages. Other juries in cases on behalf of individuals have awarded $3 billion (2001 Boeken trial, Los Angeles, reduced by trial judge to $105 million), $150 million (2002 Schwartz trial, Portland, Oregon, reduced by the trial judge to $100 million), and $28 billion (2002 Bullock trial, Los Angeles, reduced by the trial judge to $28 million).
Class actions have also been important in the American tobacco litigation scene. Although some courts have dismissed these actions on the basis that the smokers’ claims are too diverse, some cases have been allowed to proceed.
A Florida case, Broin, on behalf of non-smoking flight attendants exposed to environmental tobacco smoke, was settled in October 1997 in exchange for a $300 million fund to research the diagnosis and treatment of diseases caused by environmental tobacco smoke, as well as an agreement on the procedures to simplify and facilitate future trials.
A second Florida case, Engle, on behalf of all Florida smokers who had diseases caused by tobacco (or their survivors), ended in July 1999 with a jury verdict finding 20 diseases to be caused by cigarette smoking. In July 2000 the Florida jury awarded $145 billion in punitive damages. Philip Morris, which sells roughly half of the 20 billion packs of cigarettes sold annually in the United States, was ordered to pay $73.98 billion alone. Until this case, the largest class action punitive damage award ever handed down was $5 billion against Exxon Corp. in 1994 for the Exxon Valdez oil spill. In May 2003, a Florida appeals court overturned the judgment and the case is currently awaiting a decision from the Florida Supreme Court.
In a Louisiana case, on behalf of smokers in that state, the plaintiffs were awarded $590 million over 10 years for a smoking cessation program, though they were denied billions of dollars over 25 years for a medical monitoring program.Those claiming to be members of the Broin class of flight attendants injured by environmental tobacco smoke have filed more than 3,000 lawsuits. In one such case, a jury awarded $5.5 million to a flight attendant in 2002. The trial court reduced the award to $500,000. In addition to the flight attendants’ class action, there have been other successful environmental tobacco cases in the United States. In October 1997, an asthmatic corrections officer who became seriously ill from breathing environmental tobacco smoke at work was awarded $300,000.
Third party reimbursement cases, modeled on the successful state Medicaid reimbursement cases, also continue to be filed. Health insurers, including Blue Cross Blue Shield plans and health and welfare funds managed by unions, have cases pending for reimbursement of benefits paid to smoking victims. In one such case, Empire Blue Cross Blue Shield, New York State’s largest health insurer, was awarded a $17.8 million verdict in 2001. In addition, many Native American tribes have recently sued the industry of the cost of treating the high incidence of diseases among their members caused by tobacco.
The federal government filed a lawsuit to recover the tobacco related expenses of its Medicare, veterans, and military health programs, as well as to require the industry to change its behavior and to disgorge profits received as a result of its violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act. The lawsuit proceeded under the government’s RICO claims, and it went to trial in 2004. The suit originally sought $280 billion in penalties under RICO, but that amount has been reduced to $14 billion. To date, courts have differed in their responses to third party cases, with some opining that the injury is too indirect to be compensable and others approving the cases as a direct and efficient way to make cigarette companies pay for the harm they cause. Click on Tobacco Litigation History to learn more about this issue.If you or a loved one is a victim of a tobacco related injury, call The Law Offices of Chuck Ervin now at 916-447-4357 or CLICK HERE TO SUBMIT A SIMPLE CASE FORM. The initial consultation is free of charge, and if we agree to accept your case, we will work on a contingent fee basis, which means we get paid for our services only if there is a monetary award or recovery of funds. Don’t delay! You may have a valid claim and be entitled to compensation for your injuries, but a lawsuit must be filed before the statute of limitations expires.
|
The above is not legal advice. That can only come from a qualified attorney who is familiar with all the facts and circumstances of a particular, specific case and the relevant law. See Terms of Use. |