Shielding the Powerful
The Supreme Court’s decision yesterday overturning a nearly $80 million punitive damage award against Philip Morris is a win for corporate wrongdoers. It stretches the Constitution’s guarantee of due process in a way that will make it easier for companies that act reprehensibly to sidestep serious punishments.
It also provides unsettling new evidence that the court is more concerned about — and more willing to protect — the powerful than the powerless.
An Oregon jury awarded Mayola Williams, the widow of a cigarette smoker, about $821,000 in compensatory damages and $79.5 million in punitive damages. Ms. Williams argued that Philip Morris had spent 40 years denying the connection between smoking and cancer, even though it knew cigarettes were deadly. The Oregon Supreme Court upheld the punitive damages award, saying that Philip Morris’s actions had been “extraordinarily reprehensible.” By keeping Oregonians smoking longer than they otherwise would have, the court said, the company’s actions would, “naturally and inevitably, lead to significant injury or death.”
By a 5-to-4 vote that did not follow the usual ideological lines, the court ruled that the award was improper because it punished Philip Morris for harm done to people who were not part of the lawsuit. There is nothing unusual, or wrong, about courts considering the broader impact of a wrongdoer’s misdeeds. As Justice John Paul Stevens noted in dissent, “A murderer who kills his victim by throwing a bomb that injures dozens of bystanders should be punished more severely than one who harms no one other than his intended victim.” The fact that Philip Morris hurt so many other smokers along with Jesse Williams is surely relevant to its punishment.
The court in recent years has become increasingly activist when it comes to defending the rights of corporations by striking down punitive damage awards. And yesterday’s ruling continues that trend. It expands the notion of due process. And it overturns the decisions of a jury and a state supreme court.
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