Philip Morris News

Philip Morris Punitive Damages Appeal Goes to Supreme Court

At a glance:

The US Supreme Court will hear an appeal by Philip Morris, which claims a punitive damages judgement against the company was excessive. 
 
A jury awarded the estate of an Oregon man $800,000 compensatory damages and $79.5 million in punitive damages, and the amount was upheld in the Oregon Supreme Court. 
 
Advocacy groups say that large punitive damages may act as a deterrent to other companies, while defendants in such cases claim the awards are unconstitutional according to the "due process" clause.


Supreme Court to hear Philip Morris appeal

CNNMoney.com - 5/30/2006 2:13 PM

WASHINGTON (CNN) - Tobacco giant Philip Morris will get a chance this fall to convince the Supreme Court that an $80 million judgment against the company was excessive in an important product liability case testing the power of juries to impose large punitive awards against well-heeled corporations.
 
The justices accepted the appeal Tuesday, and will decide whether to follow recent precedent that punitive damages should in most cases match "actual" damages. Oral arguments will probably be held in November or early December

 
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