Aspinall v. Philip Morris USA, Inc.

33 Mass. L. Rptr. 198
CourtMassachusetts Superior Court
DecidedAugust 11, 2015
DocketSUCV199806002BLS1
StatusPublished
Cited by1 cases

This text of 33 Mass. L. Rptr. 198 (Aspinall v. Philip Morris USA, 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 USA, Inc., 33 Mass. L. Rptr. 198 (Mass. Ct. App. 2015).

Opinion

Leibensperger, Edward P., J.

In this certified class action, pending since 1998 and scheduled for trial on October 19, 2015, defendant, Philip Morris USA, Inc. (“PM”), moves for summary judgment on the theory that plaintiffs cannot prove injury or damages. The motion is based, in part, on the anticipated allowance of PM’s separate motion to exclude the testimony of plaintiffs’ damages experts. For the reasons stated below, both motions are DENIED.

BACKGROUND

The background of this case is recited in numerous rulings of the court and in the decision of the Supreme Judicial Court (“SJC”) in Aspinall v. Philip Morris Companies, Inc., 442 Mass 381 (2004) (“Aspinall"). Suffice to say that plaintiffs allege that PM violated the Massachusetts Consumer Protection Act, G.L.c. 93A, by using the terms “Lights” and “lowered tar and nicotine” on the packaging of Marlboro Lights. Plaintiffs claim that such representations, and the implicit representation that Lights were less harmful to the health of a smoker than a “full flavored” cigarette, including a regular Marlboro cigarette (Marlboro Reds), were knowingly and intentionally false and deceptive when made. Plaintiffs say they will offer evidence to show that Lights were no safer than regulars or Reds and were likely even more dangerous. PM denies any deception but concedes that it is an issue for trial.

In Aspinall, the SJC affirmed a certification of a class of plaintiffs who were consumers of Lights.2 Essential to such certification was a finding that plaintiffs’ claims satisfied the requirements of G.L.c. 93A, §9(2) for proceeding as a class action; namely, that “the unfair or deceptive act or practice has caused a similar injuiy to numerous other persons similarly situated.” The class was expressly limited to injuries that were common to the class and did not rely upon proof by individual consumers. Aspinall at 392. The SJC discussed two theories upon which plaintiffs might recover for a similar or common injuiy: (1) the “difference between the price paid by the consumers and the true market value of the ‘misrepresented’ cigarettes they actually received,” As-pinall at 399 (the “benefit of the bargain” damages), and (2) statutory damages of $25. With respect to the latter, the SJC stated “[i]n the event that the plaintiffs are unsuccessful in their attempt to prove actual damages, however, they will be entitled to recover statutoiy damages under G.L.c. 93A, §9(3) (’if the court finds for the petitioner, recoveiy shall be in the amount of actual damages or twenty-five dollars, whichever is greater’).” Aspinall at 400.

PM now moves for summary judgment arguing that based on subsequent decisions of the SJC concerning what constitutes proof of compensable “injuiy” under c. 93A, plaintiffs are not entitled to recover even the nominal statutoiy damages. In addition, because plaintiffs’ experts’ testimony regarding the calculation of benefit of the bargain damages should be excluded pursuant to the court’s “gate keeper” function under §702 of the Mass. Guide to Evidence, PM says that plaintiffs are unable to prove actual damages. As a result, plaintiffs’ case should be dismissed.

ANALYSIS

I. Recoveiy of Statutoiy Damages

Analysis of PM’s arguments against the potential recoveiy of statutoiy damages must start with what the SJC said in this veiy case. While PM contends that cases decided after Aspinall have refined, if not changed completely, the inteipretation of what constitutes a com-pensable injuiy under c. 93A, the fact remains that Aspinall has not been overruled or expressly modified.

Relying on Leardi v. Brown, 394 Mass. 151, 160 (1985), the SJC held in Aspinall that if deceptive advertising is proved “a per se injuiy on consumers [199]*199who purchased the cigarettes represented to be lower in tar and nicotine” has occurred. Aspinall at 402. As a result, “all will be entitled to statutory damages, without regard to whether the plaintiffs are successful in establishing that consumers were overcharged for the deceptively advertised cigarettes.” Id. Moreover, the SJC recognized that there was more than a per se injury alleged in this case. Assuming proof that there was a representation that Lights were safer than Reds or regulars, and that a reasonable consumer was deceived by that representation, the consumer received, in fact, a less safe product than advertised. “[CJonsumers of Marlboro Lights were injured when they purchased a product that when used as directed, exposed them to substantial and inherent health risks that were not (as a reasonable consumer likely could have been misled into believing) minimized by their choice of the defendant’s ‘light’ cigarettes.” Aspinall at 397. A less safe product is, logically, worth less than a safer one. “Logic . . . suggests that, all other things being equal, a truly low tar and nicotine cigarette would have economic worth greater than a comparable regular cigarette, due to the added value of an inherently ‘safer’ cigarette.” Aspinall at 400. That injury occurs without individual inquiry to determine each class member’s smoking behavior. Aspinall at 397.

The thrust of PM’s argument is that in 2013, the SJC distanced itself from the Leardi decision relied upon by the SJC in Aspinall In Leardi, the SJ C stated that “under circumstances where there has been an invasion of a legally protected interest, but no harm for which actual damages can be awarded, we conclude that the statute provides for the recovery of minimum damages in the amount of $25.” Leardi, 394 Mass, at 160. In Tyler v. Michaels Stores, Inc., 464 Mass. 492, 503 (2013), the Court held that “[t]o the extent that the quoted passage from Leardi can be read to signify that ‘invasion’ of a consumer plaintiffs established legal right in a manner that qualifies as an unfair or deceptive act under G.L.c. 93A, §2, automatically entitles the plaintiff to at least nominal damages (and attorney’s fees), we do not follow the Leardi decision.” PM contends that this clarification of the law means that what the SJ C said in Aspinall about these plaintiffs’ ability to recover statutory damages must not be followed and applied.

PM misconstrues the developments in the line of cases after Aspinall. It relies, principally, on Hershenow v. Enterprise Rent-A-Car Co. of Boston, 445 Mass. 790, 801-02 (2006), and Tyler, cited supra, decided in 2013 for its arguments. Neither case changes the result forecast by the SJC when it decided Aspinall

As stated by the SJC in Rhodes v. AIG Domestic Claims, Inc., 461 Mass. 486, 496-97 (2012), it is erroneous to contend that Hershenow was a change to c. 93A jurisprudence. Instead, “Hershenow reaffirms the established principle that to recover under c. 93A, §9, a plaintiff must prove causation—that is, the plaintiff is required to prove that the defendant’s unfair or deceptive act caused an adverse consequence or loss.” Id. at 496. Indeed, in Hershenow, 445 Mass, at 798, the court cited Aspinall as “recently reafBrm[ing]” that causation is a required element of a successful c. 93A claim. The Court went further to describe how Hershenow (where plaintiffs completed a transaction suffering no injury from the alleged deception) was different from Aspinall

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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)
33 Mass. L. Rptr. 198, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aspinall-v-philip-morris-usa-inc-masssuperct-2015.