Court rejects $15 mln award in Kansas smoker case

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A federal appeals court on Wednesday threw out a $15 million punitive damages award to a lifelong smoker who sued R.J. Reynolds Tobacco Co. after losing his legs from a cigarette-related illness.

But the Tenth U.S. Circuit Court of Appeals, in a split decision, left intact a Kansas jury’s compensatory damages of $196,416, finding the cigarette maker failed to warn David Burton of the dangers of smoking.

The jury also awarded $1,984 in compensatory damages, but no punitive damages, against Brown & Williamson Tobacco Corp. The two companies merged last summer, forming a new company, Reynolds American Inc.

In their majority opinion, the justices found that the facts of the case did not support a finding of fraud under Kansas law against the nation’s number two tobacco manufacturer.

The appellate court’s ruling effectively nullified Burton’s ability to collect punitive damages, which were based on the fraud claim, the court wrote in its opinion.

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