Products Liability and Injury Lawyer Blog

Bullock v. Philip Morris USA, Inc., (Second District, August 17, 2011) --- Cal.Rptr.3d ----, 2011 WL 3599605, 11 Cal. Daily Op. Serv. 10,492

A woman who contracted lung cancer after smoking for over 40 years filed suit against Philip Morris, alleging that the cigarettes were negligently and defectively designed and that the defendant failed to adequately warn her of the dangers of smoking. The plaintiff also alleged that the defendant intentionally and negligently misrepresented to the public and the medical and scientific community the adverse health effects of smoking, and concealed material facts relating to the dangers of cigarettes. A jury found that Philip Morris was guilty of malice, fraud or oppression with respect to each count, and awarded Bullock $850,000 in compensatory damages, as well as $13.8 million in punitive damages.

On appeal the Defendant contended that the punitive damages award was constitutionally excessive, and that a ratio of one-to-one would be appropriate in light of the substantial compensatory damages award. However, the Court of Appeal affirmed the judgment, holding that in light of the “extreme reprehensibility of Philip Morris's misconduct, including the vast scale and profitability of its course of misconduct, and its financial condition,” an award of approximately 16 times the compensatory damages was justified and not unconstitutionally excessive:

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Johnson & Johnson v. Superior Court, (Second District, January 20, 2011) --- Cal.Rptr.3d ----, 192 Cal.App.4th 757, 2011 WL 169407, 11 Cal.Daily Op. Serv. 1918, 2011 Daily Journal D.A.R. 2268

A boy who developed a serious skin condition as a result of a severe adverse reaction to an over-the-counter (OTC) pain reliever filed a products liability action against the manufacturer of the drug and its parent company, alleging that the defendants had failed to provide adequate warnings of the risks to consumers. The plaintiffs complaint asserted a claim for punitive damages, contending that the defendants had long known of the risk of the syndrome suffered by the plaintiff, but had misrepresented study results to the FDA in obtaining approval for the drug.

The Defendants moved for summary adjudication of the punitive damages claim, arguing that the product’s label had been approved by the FDA consistent with FDA regulations, and that regardless of whether they could or should have said something more explicit, their “FDA-approved labeling cannot conceivably evidence despicable conduct or a conscious disregard for safety.” The trial court denied the motion, and the Court of Appeal denied the defendants’ petition for a writ of mandate, holding that the evidence raised a triable issue of fact as to whether the manufacturer failed to warn, and whether there was a conscious disregard for safety:

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Stewart v. Union Carbide Corporation (Second District, November 16, 2010) 190 Cal.App.4th 23, 117 Cal.Rptr.3d 791, 10 Cal. Daily Op. Serv. 14,363, 2010 Daily Journal D.A.R. 17,352

A plumber and his wife filed a products liability action against Union Carbide, an asbestos manufacturer, alleging that he had contracted mesothelioma as a result of exposure to asbestos in products used on commercial and residential construction projects. The plaintiffs further alleged that Union Carbide had been aware of the dangers of asbestos but had failed to adequately warn customers who purchased asbestos for use in their products, and had responded to their questions by downplaying concerns.

Following a jury verdict in favor of the plaintiffs, which included an award for punitive damages, the Defendant appealed, contending that the evidence showed that it had an “honest conviction” that the use of its product was safe when appropriate precautions were taken. However, the court of appeal affirmed the verdict, stating:

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Roby v. McKesson Corporation, (Supreme Court of California, November 30, 2009) 47 Cal. 4th 686, 219 P.3d 749, 101 Cal.Rptr.3d 773, 22 A.D. Cases 1041, 09 Cal. Daily Op. Serv. 14,189, 2009 Daily Journal D.A.R. 16,712

A woman who alleged she was wrongfully discharged from her employment because of her medical condition and related disability, filed an action against her employer seeking damages for harassment and discrimination. Following a jury verdict in favor of the plaintiff which included over $3 million in compensatory damages and $15 million in punitive damages, the court of appeal reduced the award of compensatory damages to $1.4 million and the punitive award to $2 million.

The plaintiff petitioned for review in the California Supreme Court, asserting that the jury’s entire $15 million award fell within constitutional limits and should be reinstated. However, the Supreme Court reversed the judgment of the court of appeal and reduced the award of compensatory damages to $1.9 million, concluding that due the relatively low degree of reprehensibility on the part of the employer, a one-to-one ratio between compensatory and punitive damages was the constitutional limit:

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