Jump to full article: Kansas City (MO) Star, 2009-08-25
Author: DAN MARGOLIES LEGAL AFFAIRS
Intro: A groundbreaking tobacco case flamed out last week when a jury awarded the children of a now-deceased smoker $1.5 million -- $20.5 million less than a previous verdict overturned on appeal.
"The jury apparently felt that R.J. Reynolds didn't need to be deterred," said a disappointed Greg Leyh, an attorney for the children.
In February 2005, a Jackson County jury awarded the family of Barbara Smith $2 million in compensatory damages (which was later reduced to $500,000 because Smith was determined to be 75 percent at fault) and $20 million in punitive damages -- the largest punitive award ever in a Missouri smoking case.
The verdict was against Brown & Williamson, which was later acquired by Reynolds. Brown & Williamson made Kool cigarettes, which Smith smoked for nearly 50 years. She died of a heart attack in May 2000 at the age of 73.
Brown & Williamson appealed the verdict, and the Missouri Court of Appeals in Kansas City two years ago ordered the case retried on the issue of punitive damages only. The court ruled that evidence of Brown & Williamson's wrongful conduct was sufficient to submit to a jury. . . .
The jury two weeks ago found that Brown & Williamson knowingly sold a dangerous and defective product. It then proceeded to a second phase to determine punitive damages.
McClain asked jurors to award $110 million "to send a message." That amount represented about a quarter of the $442 million in dividends Brown & Williamson received from its parent company last year and about the same amount Reynolds' top five executives made in the last five years.
The jury, however, came back with $1.5 million, a fraction of what McClain sought. Leyh said that he spoke to two of the jurors after the trial and got the sense "that since Brown & Williamson doesn't make cigarettes anymore, they didn't feel there was a need to deter them."
Both sides said they plan to appeal.
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