Engle Plaintiffs Could Wage Long Fight Against Big Tobacco July 10, 2006
News Summary
Individual smokers involved in the $145-billion Engle class-action lawsuit against the tobacco industry -- recently thrown out by the Florida Supreme Court -- could keep the industry in court for years as they pursue individual claims, MarketWatch reported July 7.
The sliver lining in the court's decision was the fact that compensatory awards to several plaintiffs were reinstated, which could guide the legal efforts of other smokers who want to recover damages from the industry. Edward Sweda, senior attorney for the Tobacco Products Liability Project, described the decision as "inviting the Florida plaintiff's bar to get onto the playing field."
Despite the dismissal of the class-action suit, the court found that cigarette makers were negligent and produced products that were defective, unreasonably dangerous, and addictive, said Sweda. "At trial, these class members will need only prove individual medical causation and reliance on any acts of fraud that may be alleged," he said. "We expect tens of thousands of streamlined cases to be filed in Florida by this time next year."
Tobacco-industry lawyers viewed the verdict differently. "In decertifying the class, the court made it clear that former class members can now proceed only in individual trials, in which each individual plaintiff will have to prove liability on the part of the defendants including, among other things, that their use of a company's cigarettes caused their illness and that the company's conduct prevented them from making an informed choice to smoke," said William Ohlemeyer, associate general counsel for Philip Morris USA.
Industry analyst Bonnie Herzog of CitiGroup also downplayed the threat. "We do not believe [the] decision changed the landscape for the tobacco industry regarding a major threat from individual lawsuits in Florida," she wrote. "We believe a very small percentage [of Engle plaintiffs] ... will actually pursue a claim against the industry or a particular company." Marc Greenberg of Deutsche Bank added that, "the permission of individual cases, while not our 'perfect world' decision, is easier said than done."
Sandra Ezell of Bowman and Brooke, who specialized in defending product-liability lawsuits, said, "These cases are not going to go away but plaintiffs are going to have to work a lot harder. It is a lot easier to try one case than 700,000."
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