Scott v. American Tobacco Company

This is a judgment from the Fourth Circuit Court of Appeal of Louisiana, in which the court upheld tobacco companies' liability for defrauding a class of smokers by misleading them as to the addictive and damaging properties of tobacco products and ordered the defendants to fund a 10-year, 241 million dollar smoking cessation program for the benefit of class members.  In this appeal, the tobacco companies challenged the procedure of the trial court and the size of the compensation fund.  While upholding the companies’ liability, the appellate court slightly lowered the funding requirement by 10 million dollars and changed the timing of interest accruing on the judgment.  This case was subsequently granted a stay of judgment, further delaying the execution and creation of the smoking cessation program, pending an appeal to the U.S. Supreme Court, which was denied on June 27, 2011. 

Scott v. American Tobacco Co. et. al., 36 So.3d 1046 (La. App., 2010)

  • United States
  • Apr 23, 2010
  • Court of Appeal of Louisiana, Fourth Circuit

Parties

Plaintiff

  • Deania M. Jackson
  • Gloria Scott

Defendant

  • American Tobacco Company, Inc.
  • BATUS, Inc.
  • Brown & Williamson Tobacco Corporation
  • Philip Morris, Inc.
  • RJ Reynolds Tobacco Company, Inc.

Legislation Cited

Related Documents

Type of Litigation

Tobacco Control Topics

Substantive Issues

Type of Tobacco Product

None

"In order to avoid a due process violation in the context of this class action proceeding, the tobacco companies cannot be condemned to pay more into the limited ten-year program than the amount necessary to fund such program if every beneficiary participated. “If all members of a class come forward and individually prove their damages, the defendant's liability would be the total of all its liabilities to individual members.” 3 Alba Conte & Herbert Newberg, Newberg on Class Actions § 10:2, (4th ed.2002), p. 477. “The ultimate aggregate liability of the defendant can be no larger than its liability if all class members individually asserted their claims.” Id. at § 10:24, p. 537. Conte and Newberg further explains that “aggregate proof of the defendant's monetary liability is no more unfair than class treatment of other elements of liability.” Id. at § 10:2, p. 478.16 Our constitutional and statutory authority allows us to make a de novo review of the entire record on both facts and law in order to render final judgment on the proper amount of the award to fund the ten-year program for components one through four for the remaining eligible beneficiaries. La. Const. art. V, § 10(B); La. C.C.P. art. 2164. See also Grefer v. Alpha Technical, 02-1237, p. 22 (La.App. 4 Cir. 8/8/07), 965 So.2d 511, 526."