U.S. Supreme Court Grants PM USA's Petition For Review In Oregon Case

The U.S. Supreme Court today granted Philip Morris USA’s petition for review in an Oregon individual smoker’s case, known as Williams-Branch.

In its petition, PM USA argued that the punitive damages award is grossly excessive and inconsistent with State Farm v. Campbell, the U.S. Supreme Court’s landmark 2003 decision which set forth a series of limitations relating to punitive damages. At $79.5 million, the punitive damages award in this case is approximately 152 times the compensatory damages award.

“Philip Morris USA looks forward to an opportunity to explain to the Court why the punitive damages award in this case should be vacated or drastically reduced,” said William S. Ohlemeyer, Philip Morris USA vice president and associate general counsel.

The lawsuit, known as the Williams-Branch case, was filed in 1997. In 1999, the jury awarded $821,000 in compensatory or actual damages, an amount that was reduced under state law to $521,000. The trial court reduced the punitive damages award to $32 million, but in a June 2002 ruling the Oregon Court of Appeals reinstated the original $79.5 million punitive damage award.

In October 2003, the U.S. Supreme Court granted review of the case and directed the Oregon Court of Appeals to vacate its June 2002 opinion and reconsider the case in view of State Farm.

On reconsideration, the Oregon Court of Appeals reaffirmed its previous decision and upheld the $79.5 million punitive damages award.  In December 2004, the Oregon Supreme Court granted PM USA’s request for review of the Oregon Court of Appeal’s decision. In February 2006, the Oregon Supreme Court upheld the $79.5 million punitive damage award against PM USA. 

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