CONTACTS: Linda Rozett/Rebecca Wilder
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Thursday, December 15, 2005

 

 

WASHINGTON, D.C. – The United States Chamber of Commerce today applauded the Illinois Supreme Court for dismissing the class action case, Price, et al. v. Philip Morris Incorporated, overturning a multi-billion dollar award against the tobacco company and striking a blow to trial lawyers who seek to use Madison County as a haven for their abuse of class action cases. 

 

“Madison County has been the epicenter of class action filings in America for too long,” said Thomas J. Donohue, President and CEO of the U.S. Chamber.  “This decision dispels the theory that trial lawyers can drag any company with perceived deep pockets into a plaintiff-friendly district like Madison County and come out instant billionaires.”

 

At issue is a case before the Illinois Third Circuit Court in which five named plaintiffs, representing an estimated 1.14 million smokers, allege they were misled into thinking low-tar cigarettes were more healthful than regular cigarettes.  Those plaintiffs should not have received class certification, according to the Chamber. 

 

Over a century of legal precedent makes clear that the U.S. Constitution prohibits the courts of a single state from applying their own law to regulate conduct and transactions that take place in other states. 

 

Since Illinois law does not require a jury in consumer fraud proceedings, Judge Nicholas Byron granted the class $7.1 billion in compensatory damages and $3 billion in punitive damages.  Trial lawyers representing the class sought 25 percent of the compensatory award – or almost $2 billion for their services.

 

The U.S. Chamber of Commerce is the world’s largest business federation representing more than three million businesses and organizations of every size, sector and region.

 

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