$13.8 Million Punitive Damages Not Unconstitutionally Excessive.

Betty Bullock smoked cigarettes for 45 years.  The jury awarded $850,000 in compensatory damages and later awarded $28 billion in punitive damages.  The trial court granted a new trial on the issue of excessive damages with the condition it would deny the motion if plaintiffs consented to reduce the punitive damages to $28 million.  Plaintiffs accepted the reduction.  On the first appeal, the appellate court affirmed the compensatory award, reversed the judgment as to the amount of punitive damages and remanded for a new trial limited to the amount of punitive damages only.  The second jury awarded $13.8 million in punitive damages.  On the second appeal, there was a two to one decision.  The Court of Appeal found $13.8 million in punitive damages, approximately 16 times the compensatory damages, is not unconstitutionally excessive, and concluded Philip Morris’s misconduct was extremely reprehensible.  Bullock v. Philip Morris USA  (Cal. App. Second Dist., Div. 3; August 17, 2011) 198 Cal.App.4th 543, [131 Cal.Rptr.3d 382].