New Punitive Damages Decision from U.S. Supreme Court
The United States Supreme Court issued its latest decision on the constitutionality of punitive damages awards in Phillip Morris USA v. Williams, No. 05-1256 slip op. (2007). The Court threw out a $79.5 million punitive damages award from an Oregon state court in a tobacco death case. This new decision clarifies that punitive damages cannot be used to punish a defendant for injury inflicted on nonparties to the litigation. Thus, the Court deemed it improper for the jury to have punished the tobacco company for the injuries it caused to all Oregon smokers.
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