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New York Appellate Court Says State Settlement Bars Punitive Awards In Individual Lawsuits

Richmond, VA
July 22, 2008

A New York intermediate appellate court today ruled that an individual smoker is barred from attempting to recover punitive damages in New York state court cases.

The court held that "punitive damages claims are quintessentially and exclusively public in their ultimate orientation and purpose." The court concluded that the interest in punitive damages was therefore "previously and appropriately represented by the State Attorney General" in a 1998 settlement brought on behalf of all of the people of the State.

"Philip Morris USA believes the appellate court reached the legally correct decision in barring an individual plaintiff from seeking punitive damages. The ruling still permits the award of compensatory damages in individual cases," said Murray Garnick, Altria Client Services senior vice president and associate general counsel, speaking on behalf of PM USA.

The unanimous decision by a four-judge panel of the New York Supreme Court First Department Appellate Division came in the Fabiano case, which was brought by the family of a deceased New York smoker against PM USA and the nation's other leading cigarette manufacturers.

 

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