Aspinall v. Philip Morris Companies, Inc.

32 Mass. L. Rptr. 75
CourtMassachusetts Superior Court
DecidedFebruary 7, 2014
DocketSUCV199806002BLS1
StatusPublished
Cited by1 cases

This text of 32 Mass. L. Rptr. 75 (Aspinall v. Philip Morris Companies, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aspinall v. Philip Morris Companies, Inc., 32 Mass. L. Rptr. 75 (Mass. Ct. App. 2014).

Opinion

Kaplan, Mitchell H., J.

The plaintiffs, Lori Aspinall5 and Thomas Geanacopoulos, individually and on behalf of a class of similarly situated plaintiffs, now certified, filed this action against the defendant6 Philip Morris USA, Inc. (Philip Morris), alleging unjust enrichment7 and violations of G.L.c. 93A arising from Philip Morris’s use of the term “Lights” and “Lowered Tar & Nicotine” on the packaging of Marlboro Lights cigarettes. The plaintiffs’ third amended class action complaint (complaint), which is the current operative complaint, contains two counts: deceptive and unfair trade practices in violation of G.L.c. 93A, §§2, 9 (Count I) and unjust enrichment (Count II).

The case is before the court on the plaintiffs’ motion for partial summary judgment regarding the remedies that may be available to them, if the violation of Chapter 93A is proven. The plaintiffs frame the two questions presented by their motion as follows:

(1) Can plaintiffs obtain disgorgement as an equitable remedy under G.L.c. 93A, §9 if they are unable to prove “benefit of the bargain” damages, given the severity of the deception and the need to provide incentive for complying with the consumer law?
(2) In the event plaintiffs cannot prove actual damages of more than $25 per class member, will the statutory damages under G.L.c. 93A, §9(3) for “the injury suffered” be calculated on a per class member or per transaction basis if plaintiffs prove that class members suffered an invasion of a legally protected interest each time they paid for Marlboro Lights during the class period?

For the following reasons, the plaintiffs’ motion for partial summary judgment regarding available remedies is DENIED. For the reasons that follow, the court holds that: (1) the plaintiffs cannot be awarded damages in an amount equal to the profits that the defendants earned on the sale of Marlboro Lights in Massachusetts during the class period as an “equitable remedy" under G.L.c. 93A, §9; and (2) if the plaintiffs cannot prove actual damages of more than $25 per class member, the statutory damages under G.L.c. 93A, §9(3) for “the injury suffered” will be $25 for each class member.

BACKGROUND

While, generally, when considering a motion for summary judgment the court will base its decision on the undisputed facts established by the summary judgment record and such other record evidence viewed in the light most favorable to the nonmoving party, for this motion, the court will assume that the plaintiffs can prove the violation of Chapter 93A and then address the questions of law concerning the remedies that would flow from that proven violation. The following facts are, therefore, generally those that the plaintiffs maintain they will prove at trial.

The certified class of plaintiffs consists of all Massachusetts residents and residents of surrounding states (Connecticut, Maine, New Hampshire, New York, Rhode Island, and Vermont) who regularly purchased Marlboro Lights in Massachusetts from November 25, 1994 to November 25, 1998, the date the plaintiffs filed this action.8 See Aspinall v. Philip Morris Cos., 20 Mass. L. Rptr. 300, 2005 WL 3629357 at *1 (Mass.Super.Ct. Dec. 7, 2005) (Lauriat, J.).9

According to the plaintiffs, Philip Morris engaged in practices prohibited by G.L.c. 93A by misleading the public into believing that Marlboro Lights would deliver lower levels of tar and nicotine, when it knew the truth to be otherwise. In fact, Philip Morris intentionally designed the product so that most smokers of Marlboro Lights would receive as much, or more, tar and nicotine than if they had smoked regular cigarettes. Aspinall v. Philip Morris Cos., 442 Mass. at 382. The plaintiffs seek economic damages under G.L.c. 93A on behalf of individuals who purchased Marlboro Lights “low-tar” filtered cigarettes manufactured, distributed, or sold by Philip Morris in Massachusetts.

In 1964, the U.S. Surgeon General issued the first Surgeon General’s Report on cigarette smoking and health and concluded on the basis of all available biomedical literature that: cigarette smoking was a cause of lung cancer and laryngeal cancer in men, a probable cause of lung cancer in women, and the most important cause of chronic bronchitis. In response, Philip Morris claimed to have developed cigarettes with “Lowered Tar & Nicotine.” Throughout the class period, Philip Morris represented to the plaintiffs that Marlboro Lights cigarettes were “light” by using the words “Lowered Tar & Nicotine” on the packaging of Marlboro Lights purchased by the plaintiffs.

Philip Morris based its claims that Marlboro Lights delivered “Lowered Tar & Nicotine” on measurements obtained through the use of smoking machines known as the “Cambridge” testing apparatus. The Cambridge smoking machines measured the amount of tar and nicotine delivered by a cigarette by “smoking” the cigarette in a manner by which the smoke exiting the filter end of the cigarette, where a smoker’s mouth would normally be, passed through a special pad. The tar and nicotine residue from the smoke was collected on the pad and analyzed for tar and nicotine levels. The plaintiffs contend that Philip Morris intentionally designed Marlboro Lights cigarettes to deliver higher levels of tar and nicotine to smokers than would be measured by the Cambridge testing apparatus and used the results of tests to support their false claims that Marlboro Lights were in fact “light” and contained and delivered “Lowered Tar & Nicotine.” The plaintiffs assert that Philip Morris knew that lower tar and nicotine deliveries measured by the Cambridge testing apparatuses were the result of deceptive changes in [77]*77cigarette design and composition, including the addition of microscopic vent holes on or around the cigarette filter to dilute the tar and nicotine content of smoke per puff when measured by the Cambridge testing apparatuses, and alteration of the tobacco in the cigarettes and the materials used in filters and cigarette paper.

In their complaint, the plaintiffs seek “actual or statutory damages and other relief (both in equity and at law) as may be available to them under M.G.L.c. 93A, including orders that Defendants refund all sums the Plaintiffs and the Class Members paid during the Class Period to purchase Marlboro Lights cigarettes, or that Defendants disgorge all profits which they made on account of any Marlboro Lights purchased by Plaintiffs or members of the Class in Massachusetts during the Class Period, together with any further relief which may be available to them under said statute or the common law.” More specifically, the plaintiffs pray for:

A judgment that Defendants’ acts, practices and conduct have violated M.G.L.c. 93A, §2 and the common law, awarding any actual damages proved or statutory damages in the amount of $25 per class member, whichever is greater, tripled, and directing that Defendants either (a) refund all sums paid by Plaintiffs and the Class Members for Marlboro Lights cigarettes in Massachusetts during the Class Period, or (b) disgorge all profits which Defendants made on account of any such cigarettes sold to Plaintiffs or members of the class in Massachusetts during the Class Period.

Complaint at 18 (emphasis added).

In Aspinall, the SJC discussed the nature of damages that plaintiffs intended to prove at trial and that might be awarded to the class under G.L.c. 93A:

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Related

Geanacopoulos v. Philip Morris Usa, Inc.
33 Mass. L. Rptr. 308 (Massachusetts Superior Court, 2016)

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Bluebook (online)
32 Mass. L. Rptr. 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aspinall-v-philip-morris-companies-inc-masssuperct-2014.