Cleary v. Philip Morris

A class of Illinois residents sued several tobacco companies seeking a forced return of profits based on a claim of “unjust enrichment.” The plaintiffs asserted that the tobacco companies intentionally concealed the truth about the addictiveness of cigarettes and about the tar and nicotine levels in Marlboro Lights. In the fourth complaint of this lengthy lawsuit, two different class groups remained: (1) Illinois residents who purchased tobacco products during the time when tobacco companies engaged in deceptive marketing and (2) Illinois residents who bought or smoked Marlboro Lights. The court agreed with an earlier decision to dismiss the plaintiffs' claim for unjust enrichment because the plaintiffs did not show that they had suffered any harm, that they had relied on the tobacco companies’ marketing, or that they would have acted differently if the tobacco companies had been truthful.

Cleary v. Philip Morris, Inc., 656 F.3d 511 (7th Cir. 2011).

  • United States
  • Aug 25, 2011
  • U.S. Court of Appeals for the Seventh Circuit

Parties

Plaintiff

  • Brian Cleary
  • Ines Taylor
  • Others similarly situated

Defendant

  • British American Tobacco Company, LTD
  • Brown & Williamson Tobacco Corp.
  • Council for Tobacco Research-U.S.A, Inc.
  • Liggett & Myers, Inc.
  • Lorillard Tobacco Company
  • Philip Morris, Incorporated
  • R.J. Reynolds Tobacco Company
  • Tobacco Institute, Inc.
  • United States Tobacco Company

Legislation Cited

Related Documents

Type of Litigation

Tobacco Control Topics

Substantive Issues

Type of Tobacco Product

None

"This would be a different case if there was a greater connection between the defendants' retention of the cigarette revenue and a detriment to the plaintiffs. For example, if the revenue was obtained in a manner that caused injury to the plaintiffs, or if the revenue was obtained by deceiving the plaintiffs, or even if the revenue was obtained by an inadvertent misrepresentation relied upon by the plaintiffs, the defendants' retention of the revenue might conceivably be to the plaintiffs' detriment. But these allegations have been explicitly disclaimed by the plaintiffs. Under these circumstances, it would not be unjust for a manufacturer to retain the money paid by a consumer for a product when this consumer was not deceived, would not have acted any differently had he known the truth about the product, was not hurt by the product, and was satisfied with the product and planned to continue purchasing the same product in the future. In short, the retention of this consumer's money is not detrimental to him...The behavior alleged by the plaintiffs, namely, their claim that the defendants had a concerted plan to intentionally mislead consumers and conceal the truth about their cigarettes, is insufficient to support a cause of action for unjust enrichment. Unjust enrichment is not a mode of imposing punitive damages; it is a means of recovering something that the defendant is not entitled to but is unfairly possessing to the plaintiff's detriment.4 And we hold that the mere violation of a consumer's legal right to know about a product's risks, without anything more, cannot support a claim that the manufacturer unjustly retained the revenue from the product's sale to the consumer's detriment."
"The plaintiffs' unjust enrichment theory rests on the allegation that they had a legal right to know about the true nature and hazards of cigarettes. The plaintiffs assert that the defendants violated this right by failing to disclose the full truth about cigarettes and that this failure to disclose was to the plaintiffs' detriment; and that defendants' retention of the benefit—the cigarette revenue—violates the fundamental principles of justice, equity, and good conscience. It is crucial to note that the plaintiffs do not allege that they suffered any harm, that they relied on the defendants' marketing, or that they would have acted differently had the defendants been truthful about the cigarettes they were selling. In fact, not only do the plaintiffs not make these allegations, but the plaintiffs also explicitly disavow any such allegations, claiming that they are entirely unnecessary to support their theory of unjust enrichment. In other words, the plaintiffs assert that their unjust enrichment claim does not require proof of deception, causation, or actual harm with regard to individual members of the plaintiff class."