In: Economics
what is the jurisdiction and standing for the Boeken v. Philip Morris, Inc case?
Boeken v. Philip Morris (2005)
A lawsuit that showcased compensatory and punitive damages; where
Boeken sues Philip Morris cigarettes company for negligence and
product liability due to his lung cancer. A jury found that Philip
Morris products consumed by Boeken were defective, resulting in
injuries to Boeken. The jury also found liability based upon fraud
by intentional misrepresentation, fraudulent concealment, false
promise, and negligent misrepresentation, concluding that Boeken
had justifiably relied upon fraudulent utterances and concealment
by Philip Morris. The jury awarded $5,539,127 in compensatory
damages and $3 billion in punitive damages. A Philip Morris motion
for judgment notwithstanding the verdict was denied. The court
further reduced the amount of punitive damages to $50 million. The
Court affirmed the judgment and order reducing damages, if Boeken
accepts the remittitur. If he does not, the Court affirms the order
of the trial court granting a new trial to Philip Morris on the
issue of punitive damages.
Negligent misrepresentation occurs when someone makes a statement without regard to the true facts. Intentional Misrepresentation is a misrepresentation of material fact made by a defendant with scienter which is intended to induce reliance on the part of a plaintiff and which does induce justifiable reliance on the part of the plaintiff which then causes damage to the plaintiff. Court found that Philip Morris company was guilty of not disclosing the material facts and us liable to pay damages to Boeken for his lung cancer.