FORT LAUDERDALE, Fla. -- Altria Group Inc.'s Philip Morris USA and other cigarette makers will have to defend against thousands of new lawsuits by injured smokers taking advantage of a Florida court ruling that makes their cases easier to prove, reported Bloomberg.
Florida lawyers rushed to beat this week's deadline for individual claims after the Florida Supreme Court overturned a $145 billion punitive-damage verdict, the biggest in history, in July 2006. At the same time, the court upheld jury findings that the companies were negligent and sold defective products, which will apply in [image-nocss] all the new cases.
"The industry is in a bad position in Florida,'' Robert Kelley, whose Fort Lauderdale firm represents about 100 clients in the suits, told the news agency. "There are a lot of really good trial lawyers filing these cases.''
PM USA, the biggest U.S. cigarette maker, said it faces new Florida suits filed on behalf of about 1,700 dead and injured smokers so far. Plaintiffs' lawyers said the total number of claims filed against the industry may reach 10,000.
PM USA vice president and associate general counsel William S. Ohlemeyer told Bloomberg that he is confident the company will be successful in defending the suits.
Reynolds American Inc.'s R.J. Reynolds unit has received claims from about 1,650 plaintiffs, spokesperson David Howard told the news agency. There is some overlap in the companies' tallies because plaintiffs who smoked more than one brand may name several manufacturers as defendants.
"We are prepared to effectively manage and defend ourselves in these matters,'' said Howard.
Jacksonville, Fla., lawyer Norwood "Woody'' Wilner said his firm has filed 600 claims on behalf of smokers and is filing about 3,500 more this week. Wilner has represented many sick smokers including Grady Carter, a retired air traffic controller who became the first to collect a verdict from a tobacco company for a smoking-related illness when he received a $1.1 million check from Brown & Williamson Tobacco Corp. in 2001.
Willie Gary, a Stuart, Fla., lawyer who travels in a custom 32-seat Boeing plane he calls "Wings of Justice II'' is also representing individual Florida smokers. Gary's successes include a $240 million verdict against Walt Disney Co. in 2000.
The Florida Supreme Court ruling came in the Engle case, named after lead plaintiff Howard Engle, which was filed in 1994 as a class action on behalf of an estimated 700,000 smokers statewide. Six years later, a Miami jury awarded $145 billion in punitive damages to the class.
In July 2006, the Florida Supreme Court invalidated the punitive damage award, removing the biggest litigation threat against the industry, and said that the claims couldn't all be tried together in a class action. At the same time, the court said members of the class, which was defined as addicted smokers who became ill by 1996, had a year to file suits on their own, starting on Jan. 11, 2007.
The court also upheld jury findings that smoking causes lung cancer, coronary heart disease and other diseases, that nicotine is addictive and that the companies sold unreasonably dangerous products and concealed information about the dangers of smoking. All the findings apply to the new suits.
Plaintiffs' lawyers are hoping that Florida trial courts interpret the ruling to mean they must do little more than prove the amount of their clients' damages.
"That would be the perfect outcome for us,'' Scott Schlesinger, a Fort Lauderdale lawyer, told Bloomberg. "That would be the perfect storm for the industry.'' He said his firm has filed 100 suits, and estimates lawyers statewide are filing on behalf of 5,000 to 10,000 smokers.
"The plaintiffs' lawyers, I think, are engaging in a little wishful thinking,'' said Ohlemeyer. "It's going to be a much more complicated situation than many of these lawyers have suggested to their clients.''
Ohlemeyer said the companies may still try to prove that smokers were to blame for taking up the habit and that their diseases were caused by something other than smoking. The cigarette makers also will attempt to ensure that lawyers are forced to try the cases one at a time and not in bunches, he said.
In an Oct. 31, 2007, filing with the U.S. Securities & Exchange Commission (SEC), Loews Corp. reported that its Lorillard Tobacco unit had been named in suits filed by 275 people. Vector Group Ltd. reported 120 suits against its Liggett Group unit in a Nov. 8, 2007, SEC filing.
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