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 The ruling by the 11th U.S. Circuit Court of Appeals reverses more
than $800,000 in damages from R.J. Reynolds and Altria Group Inc
unit Philip Morris USA Inc awarded in 2013 to Earl Graham, whose
wife Faye, a longtime smoker, died in 1993 of lung cancer.
More broadly, the court said smokers who, like Graham, were
originally part of a massive class action in Florida against the
tobacco companies could not rely on findings from the class action
trial to prove claims that cigarettes are defective and tobacco
companies were negligent.
That class action, Engle v. Liggett, resulted in a $145 billion
award, which was overturned. But the Florida Supreme Court in 2006
said smokers could use findings from the trial in their individual
lawsuits. Thousands of lawsuits, known as the Engle progeny, were
filed in Florida federal and state courts, resulting in multiple
multimillion-dollar verdicts against tobacco defendants.
In appealing the Graham verdict, R.J. Reynolds and Philip Morris
said it was unfair to allow Engle progeny plaintiffs to hold tobacco
companies liable based on the class action jury findings, which have
been applied across the board to many cigarette brands and makers.
The 11th Circuit agreed, saying Florida courts had interpreted those
findings with such “unprecedented breadth” that it created a legal
duty that was the “functional equivalent of a flat ban” on tobacco,
which the U.S. Congress had expressly declined to impose. Plaintiffs
bringing strict liability and negligence claims against the tobacco
companies must build cases based on their specific injury rather
than the inherent risks of smoking, the 11th Circuit held.
The decision will not affect claims alleging that companies
conspired to cover up the dangers of smoking, the ruling said.
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Philip Morris declined to comment. Lawyers for the plaintiff and
R.J. Reynolds could not immediately be reached for comment.
Tobacco companies said in February that they will pay $100 million
to settle most federal smoking lawsuits. Thousands of cases remain
pending in state court. While the 11th Circuit’s ruling will not
have an immediate effect there, Florida state appeals courts have
often looked to that court for guidance in ruling on similar issues.
The case is Graham v. R.J. Reynolds Tobacco Co, 11th U.S. Circuit
Court of Appeals, No. 13-14590.
(Reporting by Jessica Dye; Editing by Alexia Garamfalvi)
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