Jump to full article: Associated Press (AP), 2005-12-15
Author: RYAN KEITH, Associated Press Writer
Intro: A similar case involving a $100 million punitive damage award against Philip Morris is pending before the Oregon Court of Appeals.
In March of 2002 an Oregon jury found in favor of the estate of Michelle Schwarz of Salem, who died of lung cancer in 1999 at age 53.
It was the first such award in the nation.
The court reversed the verdict and sent the case back to Madison County court with instruction to dismiss the class-action lawsuit.
The state Supreme Court ruled in a 4-2 decision that the Federal Trade Commission specifically allowed companies to characterize their cigarettes as "light" and "low tar," so Philip Morris did not improperly mislead customers about the health impacts of its cigarettes.
"If the FTC has specifically authorized the use of the terms .... PM USA (Philip Morris) may not be held liable under the Consumer Fraud Act, even if the terms might be deemed false, deceptive or misleading," Justice Rita Garman wrote for the majority.
Jump to full article » |