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No. 2020-P-0077 COMMONWEALTH of MASSACHUSETTS APPEALS

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No. 2020-P-0077 COMMONWEALTH of MASSACHUSETTS APPEALS Massachusetts Appeals Court Case: 2020-P-0077 Filed: 8/3/2020 3:42 PM No. 2020-P-0077 COMMONWEALTH OF MASSACHUSETTS APPEALS COURT PAMELA LARAMIE, individually as personal representative of the Estate of Fred R. Laramie Plaintiff-Appellee, v. PHILIP MORRIS USA INC., Defendant-Appellant. Appeal from the Commonwealth of Massachusetts Superior Court Department of the Trial Court, Suffolk County Case No. 1784-CV-02240-BLS1 AMENDED BRIEF FOR APPELLANT Kenneth J. Parsigian (BBO # 550770) Scott A. Chesin (BBO # 653907) U. Gwyn Williams (BBO # 565181) MAYER BROWN LLP William J. Trach (BBO #661401) 1221 Avenue of the Americas Allison L. Turner (BBO # 682906) New York, N.Y. 10020 LATHAM & WATKINS LLP (212) 506-2274 John Hancock Tower, 27th Floor [email protected] 200 Clarendon Street Boston, Mass. 02116 Laura K. Whitmore (BBO # 569550) (617) 948-6000 SHOOK, HARDY & BACON LLP [email protected] 100 North Tampa Street, Suite 2900 [email protected] Tampa, Fla. 33602 [email protected] (813) 202-7100 [email protected] [email protected] 1 Massachusetts Appeals Court Case: 2020-P-0077 Filed: 8/3/2020 3:42 PM CORPORATE DISCLOSURE STATEMENT Pursuant to Supreme Judicial Court Rule 1.21, Defendant Philip Morris USA Inc., by its undersigned counsel, hereby discloses the following: 1. The parent company of Philip Morris USA Inc. is Altria Group, Inc. 2. Altria Group, Inc. is the only publicly held corporation that owns 10% or more of Philip Morris USA Inc.’s stock. 3. Philip Morris USA Inc. has no publicly traded subsidiaries or affiliates (except as described in paragraph 2, supra). 4. Philip Morris USA Inc. will promptly supplement this disclosure upon any change to the information above. 2 Massachusetts Appeals Court Case: 2020-P-0077 Filed: 8/3/2020 3:42 PM TABLE OF CONTENTS CORPORATE DISCLOSURE STATEMENT ....................................................................... 2 TABLE OF CONTENTS ........................................................................................................... 3 TABLE OF AUTHORITIES ..................................................................................................... 6 STATEMENT OF CASE ....................................................................................... 11 STATEMENT OF ISSUES .................................................................................... 12 STATEMENT OF FACTS ..................................................................................... 13 A. The Decedent ...................................................................................... 13 B. Plaintiff’s Complaint .......................................................................... 13 C. Pretrial Proceedings Relating To Punitive Damages ......................... 14 D. Trial .................................................................................................... 15 1. Evidentiary Disputes ................................................................ 15 a. The Warning Labels ............................................................. 16 b. Consumer Expectations ....................................................... 19 2. Closing Arguments .................................................................. 20 E. Verdict And Post-Trial Motions ......................................................... 22 SUMMARY OF ARGUMENT .............................................................................. 22 ARGUMENT .......................................................................................................... 24 I. EVIDENTIARY AND INSTRUCTIONAL ERRORS REQUIRE A NEW TRIAL. ............................................................................................... 24 A. It Was Error To Admit Evidence Suggesting The Warnings Labels Were Inadequate. .................................................................... 25 1. The Evidence Was Irrelevant. .................................................. 26 2. The FTC Reports Were Hearsay. ............................................. 27 a. The Reports Contained Hearsay Within Hearsay ............... 28 b. The Ancient Documents Exception Does not Render Hearsay Within Hearsay Admissible ................................. 29 B. It Was Error To Admit Evidence Of PM USA’s Private Knowledge And Motivations. ............................................................ 33 3 Massachusetts Appeals Court Case: 2020-P-0077 Filed: 8/3/2020 3:42 PM 1. The Evidence Was Not Relevant To Consumer Expectations. ............................................................................ 34 2. The Evidence Was Not Relevant to Causation. ....................... 35 C. It Was Error To Instruct The Jury About “Misrepresentations.” ....... 37 D. The Errors Were Not Harmless. ......................................................... 39 II. COUNSEL’S MISCONDUCT DURING CLOSING ARGUMENT WARRANTS A NEW TRIAL ..................................................................... 40 III. THE TRIAL COURT ERRED BY PERMITTING PLAINTIFF TO PURSUE PUNITIVE DAMAGES. .............................................................. 43 A. Massachusetts Settled All Claims for Punitive Damages Against PM USA On Behalf Of Its Citizens. ..................................... 44 B. Res Judicata Bars Private Citizens From Pursuing Punitive Damages Again, In Subsequent Litigation......................................... 46 1. Plaintiff Is In Privity With The Attorney General. .................. 46 a. Plaintiff’s Interest in Punitive Damages Is The Same Public Interest Pursued By The Attorney General .............. 47 b. The Attorney General Adequately Represented Plaintiff’s Interest In The Prior Suit .................................... 48 c. Binding Plaintiff To The Judgment Is Consistent With Due Process And Common-Law Fairness ........................... 49 2. Both Lawsuits Sought To Punish The Same Conduct. ............ 50 a. Both Actions Alleged The Same Wrongful Conduct .......... 51 b. Both Complaints Sought To Punish PM USA Through Punitive Damages ................................................................ 52 3. The Consent Decree Was A Final Judgment On The Merits. ...................................................................................... 53 C. Punitive Damages Are Barred By The Terms Of The MSA. ............ 54 D. Persuasive Authority Favors Preclusion. ........................................... 54 CONCLUSION ....................................................................................................... 57 ADDENDUM ......................................................................................................... 59 CERTIFICATE OF COMPLIANCE ...................................................................... 90 4 Massachusetts Appeals Court Case: 2020-P-0077 Filed: 8/3/2020 3:42 PM CERTIFICATE OF SERVICE ............................................................................... 91 5 Massachusetts Appeals Court Case: 2020-P-0077 Filed: 8/3/2020 3:42 PM TABLE OF AUTHORITIES Cases Ajemian v. Yahoo!, Inc., 83 Mass. App. Ct. 565 (2013) ............................................................................. 54 Aleo v. SLB Toys USA, Inc., 466 Mass. 398 (2013) ......................................................................................... 47 Altria Grp., Inc. v. Good, 555 U.S. 70 (2008) ........................................................................................ 23, 26 Ammons v. Dade City, 594 F. Supp. 1274 (M.D. Fla. 1984) ................................................................... 32 Anderson v. Nat’l Union Fire Ins. Co. of Pittsburgh, 476 Mass. 377 (2017) ......................................................................................... 53 Aspinall v. Philip Morris Cos., 2006 WL 4968277 (Mass. Super. Ct. Aug. 10, 2006) ........................................ 38 Boyd v. Jamaica Plain Coop. Bank, 7 Mass. App. Ct. 153 (1979) ............................................................................... 50 Brown & Williamson Tobacco Corp. v. Gault, 627 S.E.2d 549 (Ga. 2006) ................................................................................. 48 Brown v. Brown & Williamson Tobacco Corp., 479 F.3d 383 (5th Cir. 2007) .............................................................................. 38 Bullock v. Philip Morris USA, Inc., 198 Cal. App. 4th 543 (2d Dist. 2011) ............................................................... 56 Carta v. B.R.E. Corp., 62 Mass. App. Ct. 1104 (2004) ........................................................................... 40 Cipollone v. Liggett Group, Inc., 505 U.S. 504 (1992) .......................................................................... 16, 23, 26, 38 Clegg v. Butler, 424 Mass. 413 (1997) ......................................................................................... 53 6 Massachusetts Appeals Court Case: 2020-P-0077 Filed: 8/3/2020 3:42 PM Columbia First Bank, FSB v. United States, 58 Fed. Cl. 333 (Fed. Cl. 2003) .......................................................................... 32 Commonwealth v. DePina, 476 Mass. 614 (2017) ................................................................................... 23, 30 Commonwealth v. Middleton, 80 Mass. App. Ct. 1110 (2011) ........................................................................... 25 Commonwealth v. Santiago, 437 Mass. 620 (2002) ......................................................................................... 29 Commonwealth v. Vick, 454 Mass. 418 (2009) ........................................................................................
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