"We believe the Oregon Supreme Court's ruling properly recognized the constitutional limits in assessing punitive damages," said Murray Garnick, Altria Group Inc. Client Services senior vice president and associate general counsel, [image-nocss] speaking on behalf of PM USA.
"The Oregon Supreme Court correctly held that the trial court violated the U.S. Constitution by allowing the jury to impose punitive damages to punish for harm to non-parties," added Garnick.
The U.S. Supreme Court has ruled that constitutional restrictions forbid imposing punitive damages on such a basis.
In this case, which was originally brought 10 years ago in 2000, a Multnomah County jury awarded approximately $168,000 in compensatory damages and $150 million in punitive damages against PM USA, and the trial court later reduced the punitive award to $100 million. In 2006, an intermediate appellate court affirmed the compensatory award, but reversed the punitive damages award and ordered a retrial on punitive damages.
The case is Schwarz v. PM USA.
Richmond, Va.-based Altria directly or indirectly owns 100% of each of PM USA, U.S. Smokeless Tobacco Co., John Middleton, Ste. Michelle Wine Estates and Philip Morris Capital Corp. PM USA cigarette brands include Marlboro, Alpine, Basic, Benson & Hedges, Bristol, Cambridge, Chesterfield, Commander, Dave's, English Ovals, Lark, L&M, Merit, Parliament, Players, Saratoga and Virginia Slims.. Moist smokeless tobacco brands include Copenhagen, Cope, Copenhagen Pouches, Skoal, Skoal Bandits, Skoal Pouches, Red Seal and Husky. Cigar brands include Black & Mild, Middleton's, Gold & Mild and Prince Alberts.
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