NEWS STORY

The Smoking Gun
Last week's staggering verdict in the local tobacco case shows the power of confidential industry documents.


BY CHRIS LYDGATE
clydgate@wweek.com

photo by
Basil Childers

 

Under Oregon law, 60 percent of the $79.5 million in punitive damages in the Williams trial would go to a
victims assistance fund. The remainder would be split between the Williams family and its legal team.

 

Philip Morris Companies Inc.'s stock tumbled 14 percent to a two-year low after news of the Williams verdict.

 

 

WEB XTRA: View some of the key documents in the Williams trial , including confidential internal memos from Philip Morris.

Other useful sites are www.tobacco.org, www.smokescreen.org and www.philipmorris.com.


Last week's record $80.3 million judgment against Philip Morris represents a major setback for the tobacco industry--not just because of the size of the damages awarded, but also because it demonstrates the persuasive power of a new legal weapon for plaintiffs: confidential company memos.

"The documents were the case," says lawyer Chuck Tauman, part of the legal team that represented the Williams family. The family sued Philip Morris for its role in the death of Portland janitor Jesse Williams, a lifelong Marlboro smoker who died of lung cancer in 1997.

In the past, tobacco company lawyers have been able to defeat legal challenges by casting doubt on the links between smoking, addiction and lung cancer. That changed last year during the titanic legal battle between cigarette makers and state attorneys general trying to recoup health-care expenditures. A Minnesota judge ordered Philip Morris and other cigarette makers to release thousands of previously undisclosed internal documents, some dating back to the 1950s.

The documents revealed that executives knew about the addictive and carcinogenic properties of cigarettes but engaged in a decades-long effort to suppress that information. They also showed the industry supported "front" organizations that echoed its message that the scientific evidence on smoking was inconclusive.

By combining these memos with Jesse Williams' health records, the Williams family's legal team--which, in addition to Tauman, included local lawyers Bill Gaylord, Ray Thomas and Jim Coon--was able to convince a Multnomah County jury to hit Philip Morris with the highest punitive damages ever in an individual smoking case.

After the trial, jurors cited the documents as a key factor in their decision. "I'd have to say it was the documents," juror Debra Barton told The Oregonian.

Despite the lure of big fees and bold headlines, plaintiffs' attorneys--hardly a diffident breed--have traditionally shied away from suing cigarette manufacturers. Taking on Philip Morris was "a huge, huge risk," says Coon. "As an investment it's insane." The main reason for this reluctance is the tobacco companies' intimidating track record. Over the past four decades they have managed to beat back virtually every smoker's lawsuit filed against them. The few cases that have been decided against the cigarette makers have been overturned on appeal.

In addition, tobacco litigation is enormously complex. The Williams team spent thousands of hours and hundreds of thousands of dollars to assemble its case. The kind of effort needed to defeat a corporate titan like Philip Morris can easily exhaust the resources of plaintiffs' attorneys, who typically work in small firms or in solo practice.

In the wake of the Minnesota settlement, however, suing cigarette makers has gotten simpler, in part because a network of plaintiffs' attorneys and anti-tobacco activists is busily trading unflattering confidential company memos released in Minnesota.

The Williams case was only the second smoker's trial against Philip Morris in which plaintiffs' attorneys were able to take advantage of those documents. (The first trial came in February, when a San Francisco jury slapped Philip Morris with $51.5 million in damages.)

Industry analysts are nervous about the implications. "The juries apparently have been very angered by the allegation of differences between what the companies knew privately and what they said publicly," Salomon Smith Barney tobacco analyst Martin Feldman told Reuters. "The plaintiff lawyers have been very effective at using the documents on an emotional basis."

The Williams trial is just the beginning. There are now hundreds of other cases pending against Philip Morris around the country--many of which will revolve around the very same documents that proved successful in Portland.

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Willamette Week | originally published April 7, 1999

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