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Cipollone v. Liggett Group, Inc.

Citations: 893 F.2d 541; 1990 WL 184Docket: Nos. 88-5732, 88-5770, 88-5771, 88-5784

Court: Court of Appeals for the Third Circuit; January 4, 1990; Federal Appellate Court

Narrative Opinion Summary

This case involves an appeal in a products liability lawsuit concerning cigarette-related health claims brought by the plaintiff against several cigarette manufacturers. The central issue was the applicability of the Federal Cigarette Labeling and Advertising Act, which the court found preempted certain state law claims post-1965. The jury attributed 80% comparative fault to the decedent for knowingly smoking despite the risks, barring damage recovery under New Jersey law. The jury also found Liggett liable for breaching an express warranty, awarding $400,000 to the plaintiff. The court addressed various procedural matters, including errors in jury instructions and the dismissal of a risk-utility claim. The appellate court reversed the district court’s summary judgment on the statute of limitations and the denial of prejudgment interest, remanding for a new trial on the failure to warn claim. The court held that the preemption decision did not apply to the risk-utility claim, allowing it to proceed. The decision will require reviewing the scope of defendants' conduct and its impact on the plaintiff's claims under New Jersey law.

Legal Issues Addressed

Comparative Fault in Products Liability

Application: The jury attributed 80% fault to the decedent for knowingly smoking despite health risks, barring damage recovery under New Jersey law.

Reasoning: The jury assigned 80% responsibility to Mrs. Cipollone and 20% to Liggett for the injuries.

Express Warranty under U.C.C. Section 2-313

Application: The jury found that Liggett breached an express warranty regarding cigarette safety, leading to a $400,000 award to the plaintiff.

Reasoning: Liggett was found to have breached an express warranty, resulting in a $400,000 award to Mr. Cipollone for damages sustained.

Preemption under the Federal Cigarette Labeling and Advertising Act

Application: The Act preempts state law claims challenging cigarette advertising and warnings post-1965, limiting liability for defendants.

Reasoning: The appellate court determined that the Act preempted state law damage actions that challenge the adequacy of cigarette package warnings or advertising practices.

Prejudgment Interest in Tort Actions

Application: The district court’s denial of prejudgment interest was reversed, aligning with New Jersey’s policy to encourage settlements.

Reasoning: The refusal to award prejudgment interest violates New Jersey Court Rule 4:42-11(b).

Risk-Utility and Design Defect Claims

Application: The court reversed the district court’s ruling striking the risk-utility claim, allowing it to proceed pending further guidance from the New Jersey Supreme Court.

Reasoning: The district court ruled to strike the plaintiff's generic risk-utility claim based on the retroactive application of the New Jersey Products Liability Act.

Statute of Limitations and the Discovery Rule

Application: The district court’s summary judgment on the statute of limitations was reversed, as a material fact existed regarding when the decedent should have discovered her claims.

Reasoning: The district court’s partial summary judgment regarding the statute of limitations is reversed due to a genuine issue of material fact about whether Mrs. Cipollone should have discovered her claims earlier under New Jersey’s discovery rule.