Verdicts & Settlements

Appeals court didn't have power to reinstate $10.1B award in cigarette case, top state court says

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The Illinois Supreme Court has once again rejected a $10.1 billion verdict against Altria’s Philip Morris USA unit, but didn’t completely shut the door on plaintiffs.

The supreme court ruled Wednesday that an Illinois appeals court did not have the authority to reinstate the award, report the Wall Street Journal (sub. req.), Reuters and the Madison Record. The 4-2 decision (PDF) said the petition had to be filed with the state supreme court, rather than in the lower courts.

The Illinois Supreme Court first overturned the verdict for the cigarette maker’s misleading marketing of “light” and “low tar” cigarettes in 2005. At that time, the state supreme court said the Federal Trade Commission had specifically authorized the use of those descriptions, and the lawsuit was barred as a result.

The plaintiffs sought relief from judgment in 2008, citing a Supreme Court amicus brief by the FTC in another case indicating the agency had not authorized cigarette descriptions such as “light” or “lowered tar and nicotine.” The appeals court ruled for the plaintiffs in a decision that had the effect of reinstating the $10.1 billion judgment.

The Illinois Supreme Court overturned the appeals court, ruling that the petition had to be filed with the court that issued the judgment from which relief is sought. “Under the hierarchical judicial system created by our constitution, this court ‘alone can overrule and modify its previous opinion,’ ” the court said, citing a previous decision.

Murray Garnick, Altria Client Services senior vice president and associate general counsel, gave a statement to the Madison Record. “The court held that the plaintiffs filed the wrong motion in the wrong court,” he said. “Now to succeed, plaintiffs would have to file a new motion in the Illinois Supreme Court and convince at least four justices to recall their own order, which dismissed the case 10 years ago.”

The case is Price v. Philip Morris.

Hat tip to ISBA Daily Legal News.

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