Chamber Applauds Overturning of Record Punitive Damages Award

Washington, D.C.—U.S. Chamber President and CEO Tom Donohue released the following statement on the Florida Supreme Court's decision to throw out a record $145 billion punitive damages award against tobacco companies in Engle, et al, v. Liggett Group, et al:

"This decision is significant for two reasons: first, it helps affirm the landmark 2003 State Farm v. Campbell decision that punitive damages must have some reasonable relationship to compensatory damages. The Court called the $145 billion judgment 'excessive' and unreasonable and tossed it out.

"Second, by ruling that class action status is inappropriate in this case because the issues are too individualized, the Court sent a powerful message to a plaintiffs' bar that is eager to win certification of class action status in additional tobacco cases and a wide range of other lawsuits, from product liability cases in the pharmaceutical industry to securities lawsuits in the financial sector.

"The Court's ruling accepted arguments made in an amicus brief filed by the National Chamber Litigation Center in 2004 that lower courts had misapplied class certification in this case. The Chamber intends to build on this victory by aggressively pushing for limitations on excessive awards of punitive damages and challenging attempts by plaintiffs' attorneys to inappropriately certify class actions."

The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

www.uschamber.com

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