Florida smoking trial verdict could set a record in punitive damages

By CATHERINE WILSON, Associated Press

MIAMI (July 9, 2000 3:48 p.m. EDT http://www.nandotimes.com) -
Following their decision that cigarette makers are to blame for
smokers' illnesses, a jury now is on the verge of punishing Big
Tobacco like no jury ever has punished anyone before.

In closing arguments set to start Monday, smokers' attorney
Stanley Rosenblatt is expected to specify an amount for punitive
damages to be sought from the nation's five biggest cigarette
makers.

Witnesses in the landmark class-action case, filed on behalf of
some 300,000 to 700,000 sick Florida smokers, contended that the
companies could afford to pay $150 billion.

The lawsuit listed $200 billion but the smokers' attorney can
adjust that figure, and he hasn't yet told jurors exactly what he
wants.

Lead tobacco attorney Dan Webb has mentioned a possible $300
billion award, saying it could wreck the industry. "These
companies have their survival at stake," he warned.

Although the industry wants a punitive verdict of zero, it sought
an upper limit of $15.3 billion, an amount it said represented
the net worth of the companies. Circuit Judge Robert Kaye said he
would not impose that cap on the jury.

Any award will be appealed, and the impact on an industry already
paying out $10 billion a year in settlements is difficult to
assess. The case is expected to go to the jury late this week but
take at least two years to move through Florida appellate courts.

Given the numbers the jury has heard, the verdict could easily
set a new U.S. record in punitive damages in a product liability
case, surpassing the $4.8 billion judgment against General Motors
last year in a California car fire. A judge slashed the award to
$1.09 billion.

Florida law says a punitive verdict cannot put a company out of
business, and judges are required to reduce any award that would.
Tobacco companies have never paid a penny in punitive damages.

The jury already has decided the industry makes a deadly,
defective product and awarded $12.7 million in compensatory
damages to three smokers with cancer. The smokers argue the
industry should be required to pay for 45 years of lies, fraud
and conspiracy.

The jury's decisions so far may reflect a greater willingness to
accept addiction as a legitimate defense for smokers and to blame
tobacco companies for their longtime unwillingness to accept any
responsibility for consumers' illnesses.

"The tobacco industry has been carrying on a public relations
campaign for 50 years, and the centerpiece of that campaign has
been to blame the people who buy the product for being stupid
enough to buy the product,"  said Woody Wilner, a Jacksonville
attorney pursuing individual smoker lawsuits.

Soon after testimony began, the industry settled lawsuits with
all 50 states.  In the next 25 years, payments are expected to
total $254 billion.

The tobacco companies have argued that's enough to pay and no
punitive damages should be awarded. But Robert Hirschhorn, a
Texas-based jury consultant who has been recruited by both sides
in tobacco cases but took none, believes jurors will hold the
settlements against the defendants.

"Agreeing to pay large settlements affects people's perceptions
on the question of whether or not the tobacco companies are right
or wrong on these issues," he said. "You don't pay out $100
billion if you haven't done something wrong, even if you don't
admit it."

The key tobacco defense against punitive damages is that the
industry has changed its ways since attorneys general began suing
in 1994, the same year the smokers' suit was filed.

Liggett Group Inc. has been at the forefront, saying for three
years that smoking causes cancer and is addictive. The company
turned over thousands of secret industry documents that pushed
other companies into the settlements in 1998, sold its premium
cigarette brands and no longer advertises.

Lorillard Tobacco Co. admitted the health risks of smoking for
the first time on the witness stand last month. Brown &
Williamson Tobacco Corp. took that position earlier.

Industry-leading Philip Morris Inc. and No. 2 R.J. Reynolds
Tobacco Co.  cite public-health warnings about the risks of
smoking but do not say as a matter of company policy that smoking
causes disease.

While the industry position evolved through the '90s, nicotine
research blossomed. Although tobacco executives once likened the
smoking habit to cravings for chocolate and coffee, they
dismissed the idea that cigarettes could be pharmacologically
addicting like heroin and cocaine.

But University of Michigan neuroscientist and nicotine researcher
Jon-Kar Zubieta said, "There is increasing evidence that nicotine
is similar to other drugs of abuse." The concept of an oral
fixation among smokers is "a commonly held view. That is
incorrect. It goes far beyond that."


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