Philip Morris Owes $20 Million in Punitives But Skirts Sanction

A $20.7 million punitive damages verdict against Philip Morris USA Inc., awarded to a smoker’s estate along with a $6.25 million compensatory award, meets the criteria for constitutionality, but the company won’t have to pay a court sanction for raising yet another legal challenge in the case, the Eleventh Circuit ruled Tuesday.

The appeals court declined to sanction Philip Morris for vexatious litigation “at this time,” but said further delay in the long-running Florida case is “unacceptable.”

A prior Eleventh Circuit decision in the case didn’t bar Philip Morris from contesting the amount of the award, the court said. ...