Engle v. R.J. Reynolds (2000),$145 billion class action award, later overturned

The Rise and Fall of a Landmark Case: Engle v. R.J. Reynolds and its Impact on Tobacco Litigation

In 1994, a class action lawsuit was filed in Florida against major tobacco companies, marking the beginning of a legal battle that would significantly impact tobacco litigation for decades to come. Engle v. R.J. Reynolds Tobacco Co. initially sought $200 million in damages on behalf of a nationwide class of smokers, alleging that cigarette manufacturers manipulated nicotine levels and concealed information about the addictiveness of their products. While the original case aimed for a nationwide class, it was later limited to Florida citizens and residents. This case would eventually lead to a staggering $145 billion class action award in 2000, only to be overturned later, creating a complex legal landscape known as the “Engle Progeny” litigation.

The Initial Victory: A $145 Billion Verdict

The Engle case proceeded to trial in phases. The first phase, concluding in 1999, found that smoking caused 19 diseases, nicotine is addictive, cigarettes were defective and unreasonably dangerous, and the defendant tobacco companies concealed these dangers and were negligent. This initial victory for the plaintiffs set the stage for the second phase, which focused on damages.

In July 2000, the jury awarded the Engle class a monumental $145 billion in punitive damages. This unprecedented verdict sent shockwaves through the tobacco industry, raising the specter of bankruptcy for the defendants. To put this number in perspective, the Engle award was seven times larger than the previous record holder of $22 billion against the estate of Ferdinand Marcos.

The Overturn and the “Engle Progeny”

Despite the initial victory, the Florida Supreme Court decertified the class action in 2006. This decision meant that the original class action could not proceed as a collective. However, the court allowed individual members of the decertified class to file their own lawsuits against the tobacco companies. These individual lawsuits, known as “Engle Progeny” cases, could leverage the findings from the original Engle case, specifically that smoking causes certain diseases and that tobacco companies were negligent in their actions.

This ruling gave former class members a significant advantage. In these individual actions, certain generalized findings from the 1999 class action trial in the Engle case were to be given “res judicata effect” as to members of the class. This meant that plaintiffs in Engle progeny cases did not have to re-prove certain key elements of their claims, such as the link between smoking and specific diseases.

The Impact on Tobacco Litigation

The Engle case and its progeny have had a profound impact on tobacco litigation, particularly in Florida. The decertification of the class action led to a surge of individual lawsuits against tobacco companies. These cases have created a constant stream of trials in Florida’s state and federal courts, resulting in jury verdicts for the plaintiffs in many cases.

The Engle case also brought to light incriminating internal documents from the tobacco industry. These documents, which revealed the industry’s knowledge of the dangers of smoking and their efforts to conceal this information from the public, played a significant role in swaying juries in favor of the plaintiffs.

Challenges and Controversies

Despite the successes of some Engle Progeny cases, the litigation has faced numerous challenges and controversies. Many verdicts have been overturned, reduced, or remanded for further proceedings. One of the main issues in these cases is proving that the plaintiff’s specific illness was caused by smoking and that the individual was addicted to nicotine.

The Current Status

While a settlement of the federal cases was announced, the state court trials are expected to continue for decades. As of December 2014, R.J. Reynolds had been served in 3,885 Engle Progeny cases. The company’s SEC filings indicated outstanding jury verdicts against them totaling $299,365,200, all in various stages of the appellate process.

Seeking Legal Assistance

If you or a loved one has suffered health issues due to smoking and believe you may have a claim against tobacco companies, it is crucial to seek legal advice. Navigating the complexities of tobacco litigation, especially in the context of Engle Progeny cases, requires experienced legal counsel. Contact our firm today for a consultation to discuss your case and explore your legal options.