Late News: 7 June 2001 00:20
Tobacco verdict: $3 billion hammer blow for Philip Morris
A jury in Los Angeles, California has found that PhilipMorris is liable for the lung cancer that will kill plaintiff RichardBoeken. The jury awarded Mr. Boeken $5.54 million in compensatory and $3billion in punitive damages. It is the biggest verdict to date in an individualtobacco case.
Clive Bates, Director of Action on Smoking and Health said:"The award of $3 billion in punitive damages is an awesome judgement onthe conduct of Big Tobacco and a mighty hammer blow against PhilipMorris. I think this will inspire blind terror in the tobacco industryworld wide".
The award to an individual comes on top of over $200 billionto be paid to States for settlement of health care cost recovery claims and agiant $155 billion award in a Florida Class action (Engle).
"The idea of punitive damages is to come up with a sumthat penalises the company responsible for the damage - that's why the sums areso large. Philip Morris could easily afford a few million here and there tosettle claims, but they only feel it when the damages are measured inbillions." said Bates.
"In cases like this, people often comment that thesmokers should take more responsibility. In fact, the contributorynegligence of the smoker is usually recognised, but what is under scrutiny inthe court is the behaviour of the tobacco company. Given their history ofrecruiting and addicting teenagers and lying about the health effects for 40years, the US juries are starting to hold them accountable for the harm causedby their product."
"Every time there is a verdict like this, the prospectfor litigation in the UK and in other jurisdictions outside the US grows morepromising." said Bates "But our legal system is much less favourableto this type of litigation. Because we don't have the same concept ofpunitive damages, the incentives for lawyers to take on cases on no-win no-feeagreements are less attractive. At the same time, the risks tosmokers are greater , because they would be bankrupted by having to pay thetobacco company's costs if they lose."
In March 1999 a case involving 50 smokers with lung cancerwas ended in the UK when the judge ruled that they had not made their claimswithin the statutory three years allowed between diagnosis and commencing legalaction. The case ended on a technical legal point - the Statute of Limitations- without the substantive arguments and evidence being heard in court.
Background from US Tobacco Products Liability Project
Contact: Clive Bates, 020 7739 5902 (w) 077 6879 1237(mobile)
