Court Sets Aside Award in Philip Morris Case

Created by : Francis Goodwin View profile

A divided Supreme Court set aside a $79.5 million punitive damages award won by a longtime smoker's widow against Altria Group Inc.'s Philip Morris unit.

Feb. 20, 2007 -- (Reuters) -- A divided Supreme Court set aside Tuesday a $79.5 million punitive damages award won by a longtime smoker's widow against Altria Group Inc.'s Philip Morris unit.

By a 5-4 vote, the high court ruled the giant tobacco company could not be punished for harm to other smokers in a case involving Mayola Williams, an Oregon woman whose husband died of lung cancer in 1997 after smoking for more than 40 years.

The case had been closely watched by business groups who wanted the high court to impose new constitutional limits on punitive damages designed to punish and deter misconduct. The court last placed limits on such awards in 2003.