Oregon Court of Appeals Restored Punitive Damage Verdict Against Philip Morris

Posted June 10, 2004

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On Wednesday, June 9, the Oregon Court of Appeals restored a $78.5 million punitive damage verdict against Philip Morris on behalf of a smoker’s family. AAJ’s law firm, the Center for Constitutional Litigation, served as co-counsel with a number of AAJ members from Oregon on behalf of the plaintiffs.

Parties following the U.S. Supreme Court’s recent pronouncements on punitive damages had closely watched the case for its application of the principles enunciated in State Farm v. Campbell last year. The new case, Williams v. Philip Morris, had been pending before the U.S. Supreme Court on a petition for certiorari by the defendant when Campbell was decided. The U.S. Supreme Court had vacated a prior decision upholding the jury’s punitive damage verdict and sent the case back to the Oregon Court of Appeals for reconsideration in light of Campbell.

Before the Court of Appeals, Philip Morris argued that Campbell established a strict nine-to-one ratio of punitive to compensatory damages and a smaller ratio of one-to-one when the compensatory award was substantial. The jury had awarded the family of Jesse Williams $821,000 in compensatory damages in connection with their wrongful death/misrepresentation claim. The plaintiffs, represented by CCL and the Oregon lawyers, argued that the prior Court of Appeals decision properly anticipated the U.S. Supreme Court’s concerns in Campbell and fully complied. Quoting the Campbell decision, the brief pointed out that the nine-to-one ratio is “not binding” and that many factors suggest the need for larger award, including many of the factors present in this case.

The plaintiffs were represented before the U.S. Supreme Court by CCL lawyers: Robert S. Peck, Jeffrey R. White, Julie A. Schroeder, Ned Miltenberg and John Vail, as well as Oregon lawyers James S. Coon, Raymond F. Thomas, William Gaylord, Charles Tauman, Maureen Leonard and Kathryn H. Clarke. Before the Oregon Court of Appeals, CCL lawyers Robert S. Peck and Julie A. Schroeder joined the same Oregon team.