Blunt - $20 million jury award is reason for tort reform

JEFFERSON CITY, Mo. -- Gov. Matt Blunt on Thursday criticized a $20 million judgment against a tobacco company as an "egregious" example of a court system in need of reform.

Blunt's comments came a day after a Jackson County jury awarded the punitive damages to the family of deceased smoker Barbara Smith, of Lee's Summit.

Jurors also awarded $2 million in actual damages, but Smith's family will get just $500,000 of that because the jury found Smith 75 percent at fault and Brown & Williamson Tobacco Corp. -- the makers of Kool cigarettes -- 25 percent at fault.

Blunt, a Republican, has called for caps on punitive damages as part of his legislative package. He contends large jury awards and litigation costs are hurting Missouri's business climate.

Republicans in Congress and other states also are pushing for new limits on lawsuits, although some proposals are more narrowly tailored to focus on medical malpractice cases.

Smith's case "does appear to be an example of a runaway court system," Blunt said at a Capitol news conference.

"Clearly, the punitive award that was out there is egregious," Blunt said. "It really is just a drain on our economy when we have those sorts of awards in our state. That's harmful to Missouri's reputation."

Prime example

Rep. Richard Byrd, R-Kirkwood, and the chief sponsor of the "tort reform" legislation, called Smith's case a prime example of what he is trying to stop.

Byrd's bill, which contains many of Blunt's proposals, would cap punitive damages in wrongful death and personal injury cases at $250,000 or three times the net actual damages awarded to the plaintiff, whichever is greater. Because Smith's family was awarded $500,000 in actual damages, Byrd's bill would have limited the punitive damages to $1.5 million.

"This is a perfect example of when you can have jurors who can get emotional," said Byrd, who shares Blunt's concerns about the economic impact.

Brown & Williamson officials called the damages "grossly excessive" and asked the judge to set aside the judgment.

Corporate accountability

The family's attorney, Ken McClain, argued during the trial that cigarette makers must be held accountable for producing a product that he said kills people.

Smith had smoked Kool cigarettes for nearly 50 years before quitting in 1990. She died 10 years later of a heart attack at age 73. She had heart and lung disease.

McClain said politicians were picking the wrong case to highlight as a reason for curtailing jury awards.

"I would be surprised if, on reflection, Republican lawmakers want to side with tobacco companies that kill people for a living," said McClain, adding: "One of the problems you have is that people are driving the debate for political gain as opposed to merit."

The proposed punitive damages cap was not included in legislation passed each of the last two years in Missouri. Democratic Gov. Bob Holden vetoed those bills as too far-reaching. But some Republicans are reaching even further this year because of Blunt's support for the legislation.

Sen. Delbert Scott, R-Lowry City and the chief Senate sponsor of the bill, said he included the punitive damages cap in this year's version primarily at Byrd's initiative. But Scott said he might support an exception to the cap in some types of cases -- perhaps in tobacco lawsuits.

"We've got to be careful and specific in how we deal with punitive damages," Scott said. "I think we need to refine the limits and what areas of business they apply to."