This section contains the nature of the case and procedural background.

Williams (P) was a heavy cigarette smoker. P's estate sued Philip (D) for negligence and deceit because D was the manufacturer of Marlboro, the brand that P favored. A jury found that P's death was caused by smoking; that P smoked in significant part because he thought it was safe to do so; and that D knowingly and falsely led him to believe that this was so. In respect to deceit, P was awarded compensatory damages of about $821,000 (about $21,000 economic and $800,000 noneconomic) along with $79.5 million in punitive damages. The trial judge subsequently found the $79.5 million punitive damages award “excessive,” and reduced it to $32 million. The Oregon Court of Appeals restored the $79.5 million jury award. D sought review in the Oregon Supreme Court (which denied review) and then to the Supreme Court. The Court remanded the case in light of State Farm Mut. Automobile Ins. Co. v. Campbell. The Oregon Court of Appeals adhered to its original views. The Oregon Supreme Court granted review. D claimed that the punitive damages should not be levied for injury to other persons, not before the court. The judge rejected this and told the jury that “punitive damages are awarded against a defendant to punish misconduct and to deter misconduct,” and “are not intended to compensate the plaintiff or anyone else for damages caused by the defendant’s conduct.” D also pointed to the roughly 100-to-1 ratio the $79.5 million punitive damages award bears to $821,000 in compensatory damages. The Oregon Supreme Court rejected D's claim that the Constitution prohibits a state jury “from using punitive damages to punish a defendant for harm to nonparties.” The Supreme Court granted certiorari.

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