Philip Morris USA Will Seek Further Review of Verdict in Engle Case; Company Says Award is Grossly Excessive

Philip Morris USA said today it will seek further review of a jury verdict awarding approximately $56 million in compensatory damages and $244 million in punitive damages.

The verdict came in the trial of a so-called Engle case following a 2006 Supreme Court decision that decertified a class action but allowed former class members to file individual lawsuits.

"From the beginning, this case was marked by a fundamentally unfair and unconstitutional trial plan that allowed the jury to rely on findings by a prior jury that have no connection to the plaintiff," said Murray Garnick, Altria Client Services senior vice president and associate general counsel, speaking on behalf of Philip Morris USA.

"Today's verdict was the result of numerous erroneous rulings by the trial judge that allowed the jury to hear extensive evidence totally unrelated to the individual smoker, Lucinda Naugle, in violation of Florida law and established constitutional limits on punitive damage proceedings recognized by the United States Supreme Court," said Garnick. "We believe that the punitive damages award is grossly excessive and a clear violation of constitutional and state law," added Garnick.

Under Florida law, the maximum bond necessary to stay any judgment in this case will be $5 million.

Approximately 4,000 claims, or roughly half of those filed in the wake of the Florida Supreme Court's decision in Engle, are pending in federal court and have been put on hold pending a federal appeals court review of the constitutional issues that arise from allowing the plaintiff to rely on prior Engle jury findings.

The case is Naugle v. Philip Morris USA.

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Altria Client Services Media Relations Tel: 804-484-8897