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PointOfLaw Forum: Is the Bell Tolling For Philip Morris? $300M Verdict for One Former Smoker 

There are 8000 more suits pending, and now that it seems clear that PM will be hemorrhaging money, I anticipate a rush to the courthouse to collect before bankruptcy ensues. At $300 million per pop, that's over $2 Trillion dollars. How did the jury come up with this punitive award, given PM's incredible existing exposure?

Many states have never seen $56 million compensatory verdicts for one plaintiff.

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Ex-smoker hopes verdict will buy a lung transplant 

When Cindy Naugle took the witness stand in her lawsuit against tobacco company Philip Morris USA, she toted an oxygen bottle and had to pause a few minutes to catch her breath.

Lawyers for the 61-year-old Naugle say her emphysema is so bad that she needs a lung transplant and can barely walk a few feet without being winded. The cause of her health problems, lawyers argued, was a 25-year smoking habit. Naugle's lawyers said the cigarette maker committed fraud. They said the tobacco company knew — but concealed — that smoking cigarettes is addictive and harmful to a person's health.

Jurors agreed. On Thursday, it took the Broward County panel less than three hours to order Philip Morris to pay Naugle $300 million. It is believed to be the largest award to date among the 7,000-plus lawsuits filed in Florida against tobacco companies.

"If the tobacco industry realizes what their ultimate potential exposure will be, maybe they will decide to do the right thing by these people," said Robert Kelley, the Fort Lauderdale attorney who represented Naugle.

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Former Smoker Sues Philip Morris, Wins $300 Million  

Florida's never-ending tobacco litigation continued not to end this week. A woman in South Florida who smoked Benson & Hedges for 25 years sued Philip Morris and was awarded $300 million.

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Florida Smoker Wins $300M Judgment Against Philip Morris - The Two-Way  

A key issue in the case was Naugle's contention that Philip Morris concealed the fact that smoking is addictive and harmful.

Here's a question:

Does this judgment sound fair?(online surveys)

(The question closes at 9 a.m. ET on Saturday.)

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TOBACCO PRODUCTS LIABILITY PROJECT HAILS $244 MILLION PUNITIVE DAMAGES AWARD AGAINST PHILIP MORRIS AS “ENTIRELY PROPORTIONATE TO THE LEVEL OF REPREHENSIBLE MISCONDUCT BY THE COMPANY” 

Edward L. Sweda, Jr., Senior Attorney for the Tobacco Products Liability Project (TPLP) at Northeastern University School of Law in Boston, was delighted with the jury’s verdict. “Clearly, this jury recognized the outrageous and reprehensible misconduct by Philip Morris and appropriately expressed its outrage by awarding $244,000,000 in punitive damages. This jury went far beyond a slap on the wrists and, instead, hit Philip Morris hard in order to punish the company for its extraordinary wrongdoing and to deter Philip Morris and other tobacco companies from committing similar wrongdoing in the future,” Sweda said.

Mark Gottlieb, TPLP’s Director, noted that “trial lawyers should be encouraged by the success that plaintiffs in Florida have been able to achieve when juries have had the chance to review the evidence of cigarette makers’ astonishing misconduct.”

Thursday’s verdict was the tenth verdict this year in Engle progeny cases in Florida. 8 out of those 10 verdicts have been for the plaintiffs

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• Philip Morris USA Will Seek Further Review of Verdict in Engle Case; Company Says Award is Grossly Excessive 

Philip Morris USA said today it will seek further review of a jury verdict awarding approximately $56 million in compensatory damages and $244 million in punitive damages.

The verdict came in the trial of a so-called Engle case following a 2006 Supreme Court decision that decertified a class action but allowed former class members to file individual lawsuits.

"From the beginning, this case was marked by a fundamentally unfair and unconstitutional trial plan that allowed the jury to rely on findings by a prior jury that have no connection to the plaintiff," said Murray Garnick, Altria Client Services senior vice president and associate general counsel, speaking on behalf of Philip Morris USA.

"Today's verdict was the result of numerous erroneous rulings by the trial judge that allowed the jury to hear extensive evidence totally unrelated to the individual smoker

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Ex-smoker wins $300 million tobacco verdict 

The sister of former Fort Lauderdale Mayor Jim Naugle on Thursday won a $300 million jury verdict, the largest individual win in the Big Tobacco lawsuits in Florida.

Cindy Naugle, an office manager and bookkeeper at Layton's Garage in Fort Lauderdale, sued Philip Morris, owner of her cigarette brand of choice, Benson & Hedges.

Naugle was found only 10 percent at fault for taking up smoking when she was 20 years old. She quit 25 years later.

Her lawyers, Bob Kelley, Todd Falzone and Todd McPharlin of the Kelley Uustal law firm in Fort Lauderdale, argued that the cigarette maker committed fraud. They contended the tobacco company knew but concealed that smoking cigarettes is addictive and harmful to a smoker's health.

They said Naugle took up smoking in 1968, thinking it would make her look older and sophisticated. She chose the slim, long Benson & Hedges, marketed as sophisticated and feminine, they said.

Naugle, who is 60 now, has emphysema and labors to do the simplest tasks.

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Philip Morris Must Pay Smoker Almost $300 Million, Jury Says  

Altria Group Inc.’s Philip Morris USA, the largest U.S. tobacco company, lost a $300 million jury verdict in a lawsuit brought by a former smoker in Florida who suffers from emphysema.

The Broward Circuit Court jury yesterday awarded Cindy Naugle $56.6 million in compensatory damages and $244 million in punitive damages, said her lawyer, Robert W. Kelley, in a phone interview . . .

Altria, based in Richmond, Virginia, said it will seek “further review” of the verdict.

“From the beginning, this case was marked by a fundamentally unfair and unconstitutional trial plan that allowed the jury to rely on findings by a prior jury,” Murray Garnick, associate general counsel for Altria, said in a statement. The “verdict was the result of numerous erroneous rulings by the trial judge,” he said.

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• Arguments begin in 'light' cigarette appeal 

If an attempt at certifying a class-action lawsuit over light tobacco products goes up in smoke at the Supreme Court of Appeal, it will not only hurt smokers and ex-smokers, but could affect all consumers.

An appeal court panel of justices - Margaret Cameron, Gail Welsh and Charles White - began hearing the case Wednesday and it continues today.

Lawyer Ches Crosbie is challenging a decision by the Supreme Court of Newfoundland and Labrador which said the class action couldn't be certified because consumers didn't buy their "light" and "mild" tobacco products directly from Imperial Tobacco Canada Ltd.

Crosbie is accusing the company - which has the largest tobacco sales in this province - of violating provincial trade practices legislation.

Rob Cunningham, an Ottawa lawyer for the Canadian Cancer Society who is observing the case, said if the certification doesn't go ahead, it will set a precedent for many consumer products, which are not commonly bought from their manufacturer.

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• Broward Jury Awards Former Mayor's Sister $300 Million in Fraud Case Against Tobacco Giant Philip Morris USA  

A Broward Circuit Court Jury returned a $300 million verdict against Philip Morris USA within hours of closing arguments this afternoon in favor of Cindy Naugle, the sister of Jim Naugle, a former mayor of Fort Lauderdale, Florida. Naugle, 61, who stopped smoking in 1993, smoked her first cigarette in 1968 when she was twenty years old because she thought they "made her look older." She told the jury that had she known then what the tobacco companies already knew, but had concealed, namely that nicotine is a highly-additive drug and cigarettes were considered by Philip Morris to be a "drug delivery device," she never would have taken that first puff. The jury assessed $56.6 million against Philip Morris for Naugle's past and future medical expenses as well as for her pain and suffering. It also assessed punitive damages in the amount of $244 million to punish the company for its misconduct. The jury also found Ms. Naugle was 10% responsible because of her decision to start smoking.

Ms. Naugle, who tried unsuccessfully to quit smoking for many years, now needs 24-hour oxygen and must travel in a wheelchair because the simple act of walking leaves her exhausted. "Cindy admitted her fault to the jury," said her attorney, Robert W. Kelley of the Fort Lauderdale law firm Kelley/Uustal. "But Philip Morris refused to accept any responsibility for her emphysema, even though she was an addicted customer for 25 years," he added. . . .

Kelley went on to say: "The cigarette companies managed to hide the truth about their product for a long time, but the truth is out now. And when the jury finally hears the truth about what these companies knew and when they knew it, they almost always side with the addicted smokers, most of whom started smoking as teenagers before there were any warning labels on cigarette packs." Kelley predicts the industry is in for a long series of losses because "most Americans are fed-up with corporate fraud and misconduct."

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Bill 48 gets ringing endorsement from health groups  

A coalition of prominent health organizations is applauding the passage of Bill 48.

The Crown's Right of Recovery Act allows the Alberta government to sue tobacco companies to recover a portion of healthcare costs related to tobacco use.

Ontario, Quebec, British Columbia and New Brunswick have already initiated lawsuits against the tobacco industry to recover Medicare costs.

Ontario and Quebec are suing for $50 billion and $30 billion respectively.

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Health groups applaud passage of bill to sue tobacco companies 

A coalition of prominent health organizations is applauding the Alberta government for passing a bill that will hold tobacco companies accountable for their tremendous impact on the healthcare system.

Bill 48, the Crown's Right of Recovery Act, allows the Alberta government to sue tobacco companies to recover the portion of healthcare costs resulting from the tobacco industry's deceptive marketing practices.

"We are delighted that the Alberta government has joined with other provinces to hold the tobacco industry accountable for the healthcare impact of its deceptive marketing practices," said Tony Hudson of The Lung Association. "The tobacco industry has an unparalleled track record of deceit, denial, and public harm resulting from decades of marketing the leading avoidable cause of premature death. This bill is a significant achievement for public health, justice and tobacco industry accountability."

Alberta is the ninth province to pass legislation to enable Medicare cost recovery lawsuits against tobacco companies.

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Newark grocers, others named in Philip Morris USA litigation 

Reyes Grocery Store and Sunny’s Supermarket , in Newark, were among the defendants named in litigation brought by tobacco company Philip Morris USA.

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International Trade Commission Blocks Illegal Internet Cigarette Sales  

The International Trade Commission (ITC) took action this week to stop illegally imported Marlboro®, Virginia Slims® and Parliament® cigarettes from entering the United States. The ITC issued a General Exclusion Order requiring U.S. Customs and Border Protection (CBP) to deny entry of these illegal goods, which infringe on Philip Morris USA's (PM USA) trademarks.

"We're pleased that the ITC has granted the General Exclusion Order, which should be a helpful tool for law enforcement in addressing illicit Internet cigarette sales and reinforces that preventing these imports is a priority," said Joe Murillo, vice president and associate general counsel, Altria Client Services, speaking on behalf of Philip Morris USA.

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• Philip Morris USA Sues Retailers to Stop Counterfeit Cigarette Sales  

Philip Morris USA (PM USA) filed lawsuits against ten retailers selling counterfeit versions of the company's Marlboro� brand cigarettes in New York and New Jersey.

"The New York metropolitan area continues to be a lucrative market for counterfeit and contraband cigarette smugglers," said Joe Murillo, vice president and associate general counsel, Altria Client Services, speaking on behalf of PM USA. "High excise taxes, coupled with New York state's lack of effective tax enforcement, only makes the problem worse," added Murillo.

"These lawsuits are the latest in a series of filings by Philip Morris USA aimed at combating the sale of counterfeit cigarettes in New York and New Jersey," said Murillo. Since May 2009, Philip Morris has filed lawsuits against 27 retail locations in New York and New Jersey for selling counterfeit Marlboro� brand cigarettes

In addition to violating many trademark laws, counterfeit cigarettes are almost always sold without the appropriate federal and state excise tax. The counterfeit cigarettes purchased from the retailers named in today's suits bore no tax stamp or a counterfeit tax stamp. As a result, the applicable excise taxes were not paid. . . .

Eastern District of New York

Maria’s Deli Grocery 143-20 101 Avenue, Richmond Hills, NY 11419

Loveras Grocery 996 Nostrand Avenue, Brooklyn, NY 11225

Southern District of New York

Aloshe Mini Market 1889 Guerlain Street, Bronx, NY 10461

El Barrio Grocery Deli 39 West 183rd Street, Bronx, NY 10453

Fernandez Grocery Corp. 1665 Madison Avenue, New York, NY 10029

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