Supreme Court Rules on Punitive Damages

In Philip Morris USA v. Mayola Williams, etc., decided February 20, the Supreme Court held that punitive damages may not be awarded to punish a defendant for injuries caused to persons not involved in the lawsuit in which such damages are awarded. In that case, where the decedent died from smoking Philip Morris products, the jury found Philip Morris knowingly and falsely led him to believe it was safe to smoke such products. The Oregon jury awarded $821,000 in compensatory damages and $79.5 million in punitive damages, and the Oregon Supreme Court affirmed both awards. In reversing, the United States Supreme Court held that the Due Process Clause of the Constitution requires state courts to provide assurance that jury awards of punitive damages punish only the harm done to those whose interests are actually represented in the lawsuit. It should be noted that this decision will not affect punitive damages awarded in a class action to punish a defendant for harm done to all those who