Appeals
On appeal, the Oregon Court of Appeals reversed and reinstated the $79.5 million judgment. Following the "guideposts" established in BMW of North America, Inc. v. Gore, the Court of Appeals examined whether the punitive damages were appropriate based on (1) the degree of reprehensibility of the conduct, (2) the disparity between the actual harm and the punitive damages, and (3) the difference between the punitive damages and civil penalties allowed in similar cases. While determining the reprehensibility of Philip Morris's actions, the court considered the length of the misinformation campaign and the number of people it had reached, concluding that its actions were so reprehensible that they justified punitive damages 97 times greater than the actual damages. The Oregon Supreme Court denied review.
The Supreme Court of the United States then granted certiorari, and in the 2007 decision vacated the Court of Appeals' judgment, and remanded the case to the Oregon Court of Appeals for that court to reconsider the amount of the punitive damages award in light of State Farm v. Campbell.
Read more about this topic: Philip Morris USA V. Williams
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