Broward Jury Awards Former Mayor's Sister $300 Million in Fraud Case Against Tobacco Giant Philip Morris USA

November 19, 2009

A Broward Circuit Court Jury returned a $300 million verdict against Philip Morris USA within hours of closing arguments this afternoon in favor of Cindy Naugle, the sister of Jim Naugle, a former mayor of Fort Lauderdale, Florida. Naugle, 61, who stopped smoking in 1993, smoked her first cigarette in 1968 when she was twenty years old because she thought they "made her look older." She told the jury that had she known then what the tobacco companies already knew, but had concealed, namely that nicotine is a highly-additive drug and cigarettes were considered by Philip Morris to be a "drug delivery device," she never would have taken that first puff. The jury assessed $56.6 million against Philip Morris for Naugle's past and future medical expenses as well as for her pain and suffering. It also assessed punitive damages in the amount of $244 million to punish the company for its misconduct. The jury also found Ms. Naugle was 10% responsible because of her decision to start smoking.

Ms. Naugle, who tried unsuccessfully to quit smoking for many years, now needs 24-hour oxygen and must travel in a wheelchair because the simple act of walking leaves her exhausted. "Cindy admitted her fault to the jury," said her attorney, Robert W. Kelley of the Fort Lauderdale law firm Kelley/Uustal. "But Philip Morris refused to accept any responsibility for her emphysema, even though she was an addicted customer for 25 years," he added.

Naugle was finally able to stop smoking in 1993 when the nicotine patch became available, after 25 years of heavy smoking. "The jury saw her condition. We think that they felt it. She needed to rest for five minutes to catch her breath after making the 7 step walk to the witness stand." said Attorney Todd Falzone, who along with Kelley and attorney Todd McPharlin, represented Naugle in the three-week trial. "Cindy spends every minute of every day as if she were drowning," said Kelley.

Ms. Naugle's lawsuit, one of the cases that have come to be known as the Engle Progeny cases, stems from the 2000 verdict in the Engle v. R.J. Reynolds Tobacco Co class action lawsuit. In 2006 the Florida Supreme Court de-certified the class allowing the way for individual plaintiffs, damaged by "Big Tobacco's" conduct to file individual lawsuits. Today's verdict is by far the largest verdict to date in those cases.

Kelley went on to say: "The cigarette companies managed to hide the truth about their product for a long time, but the truth is out now. And when the jury finally hears the truth about what these companies knew and when they knew it, they almost always side with the addicted smokers, most of whom started smoking as teenagers before there were any warning labels on cigarette packs." Kelley predicts the industry is in for a long series of losses because "most Americans are fed-up with corporate fraud and misconduct."

The former Mayor was with his sister throughout the long trial, assisting with her oxygen needs and helping her get in and out of the courtroom.

Attorneys from Kelley/Uustal representing Ms. Naugle included: Robert W. Kelley, Todd R. Falzone, and Todd R. McPharlin.

SOURCE Kelley / Uustal