http://www.msnbc.msn.com/id/17239146/
Supreme Court throws out Philip Morris verdict
High court: Cigarette maker does not have to pay $79.5 million in damages
WASHINGTON - The Supreme Court threw out a $79.5 million award that a jury had ordered a cigarette maker to pay to a smoker’s widow, a ruling that could bode well for other businesses seeking stricter limits on big-dollar verdicts.
The 5-4 decision Tuesday was a victory for Altria Group Inc.’s Philip Morris USA, which contested an Oregon Supreme Court decision upholding the jury’s verdict.
Yet the decision did not address a key argument made by Philip Morris and its supporters across a wide range of businesses — that the size of the award was unconstitutionally large. They had hoped the court would limit the amount that can be awarded in punitive damage cases.
Instead, Justice Stephen Breyer wrote in his majority opinion that the award to Mayola Williams could not stand because a jury may punish a defendant only for the harm done to the person who is suing, not to others whose cases were not before it.
“To permit punishment for injuring a nonparty victim would add a near standardless dimension to the punitive damages question,” Breyer said.
The company had argued that the jury was encouraged to punish Philip Morris for health problems suffered by every Oregonian who smoked its cigarettes.
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