PHILIP MORRIS USA INC. and R.J. REYNOLDS TOBACCO COMPANY v. STANLEY MARTIN, AS PERSONAL REPRESENTATIVE OF THE ESTATE OF CAROLE MARTIN

CourtDistrict Court of Appeal of Florida
DecidedDecember 12, 2018
Docket17-0574
StatusPublished

This text of PHILIP MORRIS USA INC. and R.J. REYNOLDS TOBACCO COMPANY v. STANLEY MARTIN, AS PERSONAL REPRESENTATIVE OF THE ESTATE OF CAROLE MARTIN (PHILIP MORRIS USA INC. and R.J. REYNOLDS TOBACCO COMPANY v. STANLEY MARTIN, AS PERSONAL REPRESENTATIVE OF THE ESTATE OF CAROLE MARTIN) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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PHILIP MORRIS USA INC. and R.J. REYNOLDS TOBACCO COMPANY v. STANLEY MARTIN, AS PERSONAL REPRESENTATIVE OF THE ESTATE OF CAROLE MARTIN, (Fla. Ct. App. 2018).

Opinion

DISTRICT COURT OF APPEAL OF THE STATE OF FLORIDA FOURTH DISTRICT

PHILIP MORRIS USA INC. and R.J. REYNOLDS TOBACCO COMPANY, Appellants,

v.

STANLEY MARTIN, as Personal Representative of the ESTATE OF CAROLE MARTIN, Appellee.

No. 4D17-574

[ December 12, 2018 ]

CORRECTED OPINION

Appeal and cross-appeal from the Circuit Court for the Seventeenth Judicial Circuit, Broward County; John Joseph Murphy, Judge; L.T. Case No. 2007CV03644 (19).

William L. Durham II and Val Leppart of King & Spalding LLP, Atlanta, GA, for appellant R.J. Reynolds Tobacco Co.

Scott A. Shesin and Michael Rayfield of Mayer Brown LLP, New York, NY, and Joseph H. Lang, Jr. of Carlton Fields Jorden Burt, P.A., Tampa, for appellant Philip Morris USA Inc.

Richard B. Rosenthal of Richard B. Rosenthal, P.A., Miami, and Eric S. Rosen of Kelley Uustal, PLC, Fort Lauderdale, for appellee.

ARTAU, EDWARD L., Associate Judge.

In this Engle 1 wrongful death case, the defendants, Philip Morris and R.J. Reynolds, appeal a final judgment awarding the plaintiff just under $3.7 million in compensatory damages (the $5.4 million assessed by the jury, less a 32% comparative fault reduction), and $650,000 in punitive damages. The plaintiff cross-appeals the trial court’s reduction of the

1 Engle v. Liggett Grp., Inc., 945 So. 2d 1246, 1254 (Fla. 2006). compensatory damages award based on the decedent’s comparative fault.

On the main appeal, we hold that, because the specific tobacco-related disease that caused the Engle class member’s death and gave rise to this claim manifested after October 1, 1999, the trial court erred by declining to apply the post-1999 version of section 768.73, Florida Statutes, which bars successive awards of punitive damages under the circumstances here. We therefore reverse the trial court’s ruling on that issue, but affirm on all other issues raised in the main appeal.

On the cross-appeal, we reverse and remand for reinstatement of the entire amount of compensatory damages found by the jury.

Factual Background

The plaintiff and his late wife, Carole Martin, moved to Florida in 1992, but split their time between New York and Florida.

Mrs. Martin suffered a smoking-related heart attack in 1995. She later developed lung cancer in 2003, and ultimately died of the cancer in 2004.

In 2007, the plaintiff brought this Engle wrongful death lawsuit against the defendants, asserting claims of strict liability, negligence, fraud by concealment, and conspiracy to commit fraud by concealment. The trial court granted the plaintiff leave to amend his complaint to add claims for punitive damages.

Before trial, the defendants sought to invoke the current version of section 768.73(2)(a), Florida Statutes, which generally bars successive punitive damages awards against a defendant “in any action alleging harm from the same act or single course of conduct.” The defendants argued that section 768.73(2)(a) barred a punitive damages award because: (1) the plaintiff’s claim arose after the October 1, 1999 effective date of the statute; and (2) each defendant had already paid over $150 million in punitive damages in tobacco lawsuits based on the same conduct. The trial court deferred ruling on this issue until after trial.

At the conclusion of the trial, the jury found that Mrs. Martin was “a legal citizen and resident of Florida on or before November 21, 1996,” found in favor of the plaintiff on each claim, determined that Mrs. Martin was 32% at fault, found that the plaintiff had suffered approximately $5.4 million in compensatory damages, assessed $450,000 in punitive damages against Philip Morris, and assessed $200,000 in punitive damages against R.J. Reynolds.

2 In post-trial motions, the defendants argued that the plaintiff’s claim for punitive damages was barred by the current version of section 768.73(2)(a). The trial court denied the defendants’ post-trial motions.

The trial court entered final judgment in favor of the plaintiff, but reduced the compensatory damages award to just under $3.7 million to account for the jury’s comparative fault determination. This appeal and cross-appeal ensued.

Main Appeal

We first address the defendants’ argument that the trial court erred by refusing to apply the post-1999 version of section 768.73. The defendants contend that the post-1999 version of the statute applies because the plaintiff’s cause of action arose after 1999. Specifically, the defendants contend that the plaintiff’s wrongful death cause of action arose when Mrs. Martin died in 2004. Alternatively, the defendants contend that even if the plaintiff’s cause of action arose when Mrs. Martin developed lung cancer in 2003, the post-1999 statute would still apply.

The plaintiff argues in response that the post-1999 statute does not apply here, because (1) the wrongful death action relates back to the 1994 Engle class action complaint, and (2) the date of the applicable statutory law necessarily had to be before the November 1996 Engle class membership cut-off date. Additionally, the plaintiff argues that the post- 1999 statute’s limitation on successive punitive damages awards is unconstitutional.

A trial court’s ruling on an issue of statutory interpretation is subject to de novo review. Headley v. City of Miami, 215 So. 3d 1, 5 (Fla. 2017).

Section 768.73(2)(a), Florida Statutes, as amended in 1999, provides that “punitive damages may not be awarded against a defendant in a civil action if that defendant establishes, before trial, that punitive damages have previously been awarded against that defendant . . . in any action alleging harm from the same act or single course of conduct for which the claimant seeks compensatory damages.” § 768.73(2)(a), Fla. Stat. (1999).

The amended version of section 768.73 applies “to all causes of action arising after the effective date of [the] act,” which was October 1, 1999. § 768.73(5), Fla. Stat. (1999); Ch. 99-225, § 23, Laws of Fla. Before the 1999 amendment, section 768.73 had no such bar on successive awards of punitive damages.

3 The question for this court, therefore, is whether the plaintiff’s cause of action arose after October 1, 1999.

In civil cases, the applicable version of a statute is ordinarily the one “in effect when the cause of action arose.” D’Angelo v. Fitzmaurice, 863 So. 2d 311, 314 n.9 (Fla. 2003).

This court has previously concluded that “Florida law does not distinguish between when a cause of action accrues and when a cause of action arises.” See Lumbermens Mut. Cas. Co. v. August, 509 So. 2d 352, 353 (Fla. 4th DCA 1987), quashed, 530 So. 2d 293 (Fla. 1988). 2 Moreover, Black’s Law Dictionary defines the term “accrue” as meaning “[t]o come into existence as an enforceable claim or right; to arise.” Accrue, BLACK’S LAW DICTIONARY (10th ed. 2014). We quote these sources to emphasize that the terms “accrue” and “arise” are synonymous with respect to when a cause of action comes into existence, and we will be using those terms interchangeably in this opinion.

As a general proposition, “[a] cause of action for wrongful death accrues on the date of [the] decedent’s death.” Nationwide Mut. Fire Ins. Co. v. MacDonald, 645 So. 2d 1057, 1058 (Fla. 4th DCA 1994). However, in Engle wrongful death cases, this court has looked to the time when the injury causing the smoker’s death manifested in determining which version of section 768.73 applied. R.J. Reynolds Tobacco Co. v.

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PHILIP MORRIS USA INC. and R.J. REYNOLDS TOBACCO COMPANY v. STANLEY MARTIN, AS PERSONAL REPRESENTATIVE OF THE ESTATE OF CAROLE MARTIN, Counsel Stack Legal Research, https://law.counselstack.com/opinion/philip-morris-usa-inc-and-rj-reynolds-tobacco-company-v-stanley-martin-fladistctapp-2018.