In 1997, Mayola Williams’s husband Jesse Williams died from lung cancer as a result of smoking cigarettes manufactured and marketed by Philip Morris USA Inc. Mayola Williams sued Philip Morris alleging negligence, strict product liability, and fraud.
Williams sued Philip Morris alleging negligence, strict product liability, and fraud. See Brief for Petitioner at 3. At trial, Philip Morris requested and was denied a jury instruction on punitive damages, which would have prohibited the jury from punishing Philip Morris for harm to nonparties.
In Philip Morris USA v. Williams (“ Williams II ”), the U.S. Supreme Court vacated the decision of the Oregon Supreme Court upholding this award and instructed the lower court to apply its standard of prohibiting punishment of a defendant for damage to nonparties.
The jury awarded Williams $79.5 million dollars in punitive damages. In Philip Morris USA v.
Petitioner Philip Morris USA Inc. (“Philip Morris”) argues that the Oregon Supreme Court had no authority to refuse to apply the Supreme Court’s constitutional standard and to instead find its constitutional claim barred by state law. See Brief for Petitioner, Philip Morris USA Inc. at 10–11.
Supreme Court in this case will determine whether the Oregon Supreme Court acted legitimately on remand when it held that Philip Morris USA Inc. (“Philip Morris”) forfeited its federal claim by procedurally defaulting under Oregon state law. Philip Morris argues that the Oregon Supreme Court’s decision should be reversed, because it should not have taken state law into account. Alternatively, Philip Morris argues that the state law at issue was insufficient to defeat its federal claim. Mayola Williams, on the other hand, argues that the Oregon court legitimately considered state law in its decision, and that the state law was sufficient to bar Philip Morris’s federal claim. The Supreme Court’s decision will mark the third time that it confronts this case.
When Philip Morris later claimed that the court erred by not issuing that warning, the Oregon Supreme Court found that Philip Morris had forfeited the constitutional right to a warning under the “correct in all respects” law because other paragraphs in the instruction were incorrect. See Id. at 39–40.
On the other hand, Philip Morris counters that the Oregon court should not have considered state law to determine whether its request was proper, because the Supreme Court, in Williams II, implicitly held that Philip Morris made a proper request and so preserved its federal claim. See Brief for Petitioner at 19.
Jesse Williams ’ s widow, Mayola Williams (“Williams”), alleges that for approximately forty years Philip Morris knew that smoking cigarettes causes cancer, that millions were addicted to cigarettes, and that Philip Morris had either denied this knowledge or assured customers smoking would not harm their health.
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A jury found that Williams’ death was caused by smoking ; that Williams smoked in significant part because he thought it was safe to do so; and that Philip Morris knowingly and falsely led him to believe that this was so. The jury ultimately found that Philip Morris was negligent (as was Williams) and that Philip Morris had engaged in deceit.
The Oregon Supreme Court rejected these and other Philip Morris arguments. In particular, it rejected Philip Morris’ claim that the Constitution prohibits a state jury “from using punitive damages to punish a defendant for harm to nonparties.” 340 Ore. 35, 51–52, 127 P. 3d 1165, 1175 (2006).
And as the Oregon Supreme Court explicitly recognized, Philip Morris argued that the Constitution “prohibits the state, acting through a civil jury, from using punitive damages to punish a defendant for harm to nonparties.” 340 Ore., at 51–52, 127 P. 3d, at 1175. The court rejected that claim.
The jury ultimately found that Philip Morris was negligent (as was Williams) and that Philip Morris had engaged in deceit. In respect to deceit, the claim at issue here, it awarded compensatory damages of about $821,000 (about $21,000 economic and $800,000 noneconomic) along with $79.5 million in punitive damages.