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Vincent Insolia, Billy Mays, Maureen Lovejoy, Karen Insolia, Phyllis Mays, and Lee Lovejoy v. Philip Morris Incorporated, R.J. Reynolds Tobacco Company, Brown & Williamson Tobacco Corporation, B.A.T. Industries P.L.C., Lorillard Tobacco Company, Liggett Group, Inc., Hill and Knowlton, Inc., the Council for Tobacco research-u.s.a., Inc., and the Tobacco Institute, Inc., Physicians Plus Insurance Corporation v. Philip Morris Incorporated, R.J. Reynolds Tobacco Company, Brown & Williamson Tobacco Corporation, B.A.T. Industries P.L.C., Lorillard Tobacco Company, Liggett Group, Inc., Hill and Knowlton, Inc., the Council for Tobacco research-u.s.a., Inc., and the Tobacco Institute, Inc.

Citation: 216 F.3d 596Docket: 99-2654

Court: Court of Appeals for the Seventh Circuit; June 16, 2000; Federal Appellate Court

Narrative Opinion Summary

This case involves former smokers diagnosed with lung cancer who sued major tobacco companies, alleging strict liability, negligence, misrepresentation, and intentional exposure to hazardous substances. The plaintiffs, all from Wisconsin, began smoking before health warnings were required on cigarette packs in 1965. The initial state court case was moved to federal court under diversity jurisdiction. The District Court granted summary judgment for the defendants on all claims except one, which was later dropped. On appeal, the plaintiffs challenged the summary judgment, focusing on Wisconsin's strict liability law and the concept of consumer expectations. The court highlighted that the plaintiffs needed substantial evidence to show that the average consumer at the time they began smoking was unaware of the health risks. The negligence claim was remanded for further proceedings, while the strict liability, fraud, and intentional exposure claims were dismissed. The court found that the plaintiffs failed to provide adequate evidence that the public was unaware of nicotine's addictive properties. Furthermore, the court refused to create a new tort claim or certify questions to the Wisconsin Supreme Court. The appellate court ultimately upheld the lower court's decision on most claims, with a partial dissent emphasizing the challenges of establishing strict liability based on historical perceptions of smoking risks.

Legal Issues Addressed

Certification of State Law Questions

Application: The court declined to certify novel state law questions to the Wisconsin Supreme Court, emphasizing the preference for dismissing new claims rather than altering state law.

Reasoning: Federal courts generally avoid altering state law and prefer to dismiss novel state law claims, opting for narrower interpretations that limit liability.

Consumer Expectation Test in Product Liability

Application: The court considered whether the average consumer's expectations should reflect the understanding of a teenager beginning to smoke, particularly in light of the historical context of smoking hazards.

Reasoning: The plaintiffs argue that, at the relevant time, the average consumer—specifically a beginner smoker, perhaps even a teenage smoker—did not fully grasp the health risks associated with smoking, especially its addictive nature.

Fraudulent Misrepresentation in Tort Claims

Application: The plaintiffs' fraud claim was dismissed due to lack of specific reliance on the tobacco companies' misrepresentations, which is a requirement for such claims.

Reasoning: Unlike strict liability claims, fraud claims require proof of specific reliance on misrepresentations, which none of the plaintiffs could provide.

Negligence and Negligence Per Se in Product Liability

Application: The court distinguished between ordinary negligence and negligence per se, focusing on the defendants' conduct in the production of cigarettes and whether that conduct constituted a breach of ordinary care.

Reasoning: Ordinary negligence focuses on the defendant's conduct in creating a product and requires the plaintiff to prove that the defendant failed to exercise ordinary care, resulting in harm.

Strict Liability under Wisconsin Law

Application: The court evaluated the plaintiffs' strict liability claim against tobacco companies under Wisconsin law, which incorporates the Restatement (Second) of Torts, Section 402A. The focus was on whether cigarettes were unreasonably dangerous at the time the plaintiffs began smoking.

Reasoning: The strict liability claim in this case is governed by Wisconsin law, which incorporates the Restatement (Second) of Torts. According to Section 402A, a seller is liable for physical harm caused by an unreasonably dangerous product.