Philip Morris USA v. Williams

(Slip Opinion) OCTOBER TERM, 2006 1

Syllabus

NOTE: Where it is feasible, a syllabus (headnote) will be released, as is

being done in connection with this case, at the time the opinion is issued.

The syllabus constitutes no part of the opinion of the Court but has been

prepared by the Reporter of Decisions for the convenience of the reader.

See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.

SUPREME COURT OF THE UNITED STATES

Syllabus

PHILIP MORRIS USA v. WILLIAMS, PERSONAL REPRE

SENTATIVE OF ESTATE OF WILLIAMS, DECEASED

CERTIORARI TO THE SUPREME COURT OF OREGON

No. 05–1256. Argued October 31, 2006—Decided February 20, 2007

In this state negligence and deceit lawsuit, a jury found that Jesse Wil

liams’ death was caused by smoking and that petitioner Philip Mor

ris, which manufactured the cigarettes he favored, knowingly and

falsely led him to believe that smoking was safe. In respect to deceit,

it awarded $821,000 in compensatory damages and $79.5 million in

punitive damages to respondent, the personal representative of Wil

liams’ estate. The trial court reduced the latter award, but it was re

stored by the Oregon Court of Appeals. The State Supreme Court re

jected Philip Morris’ arguments that the trial court should have

instructed the jury that it could not punish Philip Morris for injury to

persons not before the court, and that the roughly 100-to-1 ratio the

$79.5 million award bore to the compensatory damages amount indi

cated a “grossly excessive” punitive award.

Held:

1. A punitive damages award based in part on a jury’s desire to

punish a defendant for harming nonparties amounts to a taking of

property from the defendant without due process. Pp. 4–10.

(a) While “[p]unitive damages may properly be imposed to fur

ther a State’s legitimate interests in punishing unlawful conduct and

deterring its repetition,” BMW of North America, Inc. v. Gore, 517

U. S. 559, 568, unless a State insists upon proper standards to cabin

the jury’s discretionary authority, its punitive damages system may

deprive a defendant of “fair notice . . . of the severity of the penalty

that a State may impose,” id., at 574; may threaten “arbitrary pun

ishments,” State Farm Mut. Automobile Ins. Co. v. Campbell, 538

U. S. 408, 416; and, where the amounts are sufficiently large, may

impose one State’s (or one jury’s) “policy choice” upon “neighboring

States” with different public policies, BMW, supra, at 571–572. Thus,

2 PHILIP MORRIS USA v. WILLIAMS

Syllabus

the Constitution imposes limits on both the procedures for awarding

punitive damages and amounts forbidden as “grossly excessive.” See

Honda Motor Co. v. Oberg, 512 U. S. 415, 432. The Constitution’s

procedural limitations are considered here. Pp. 4–5.

(b) The Due Process Clause forbids a State to use a punitive

damages award to punish a defendant for injury inflicted on strang

ers to the litigation. For one thing, a defendant threatened with pun

ishment for such injury has no opportunity to defend against the

charge. See Lindsey v. Normet, 405 U. S. 56, 66. For another, per

mitting such punishment would add a near standardless dimension

to the punitive damages equation and magnify the fundamental due

process concerns of this Court’s pertinent cases—arbitrariness, un

certainty, and lack of notice. Finally, the Court finds no authority to

support using punitive damages awards to punish a defendant for

harming others. BMW, supra, at 568, n.11, distinguished. Respon

dent argues that showing harm to others is relevant to a different

part of the punitive damages constitutional equation, namely, repre

hensibility. While evidence of actual harm to nonparties can help to

show that the conduct that harmed the plaintiff also posed a substan

tial risk to the general public, and so was particularly reprehensible,

a jury may not go further and use a punitive damages verdict to pun

ish a defendant directly for harms to those nonparties. Given the

risks of unfairness, it is constitutionally important for a court to pro

vide assurance that a jury is asking the right question; and given the

risks of arbitrariness, inadequate notice, and imposing one State’s po

licies on other States, it is particularly important that States avoid

procedure that unnecessarily deprives juries of proper legal guidance.

Pp. 5–8.

(c) The Oregon Supreme Court’s opinion focused on more than

reprehensibility. In rejecting Philip Morris’ claim that the Constitu

tion prohibits using punitive damages to punish a defendant for

harm to nonparties, it made three statements. The first—that this

Court held in State Farm only that a jury could not base an award on

dissimilar acts of a defendant—was correct, but this Court now ex

plicitly holds that a jury may not punish for harm to others. This

Court disagrees with the second statement—that if a jury cannot

punish for the conduct, there is no reason to consider it—since the

Due Process Clause prohibits a State’s inflicting punishment for

harm to nonparties, but permits a jury to consider such harm in de

termining reprehensibility. The third statement—that it is unclear

how a jury could consider harm to nonparties and then withhold that

consideration from the punishment calculus—raises the practical

problem of how to know whether a jury punished the defendant for

causing injury to others rather than just took such injury into ac

Cite as: 549 U. S. ____ (2007) 3

Syllabus

count under the rubric of reprehensibility. The answer is that state

courts cannot authorize procedures that create an unreasonable and

unnecessary risk of any such confusion occurring. Although States

have some flexibility in determining what kind of procedures to im

plement to protect against that risk, federal constitutional law obli

gates them to provide some form of protection where the risk of mis

understanding is a significant one. Pp. 8–10.

2. Because the Oregon Supreme Court’s application of the correct

standard may lead to a new trial, or a change in the level of the puni

tive damages award, this Court will not consider the question

whether the award is constitutionally “grossly excessive.” P. 10.

340 Ore. 35, 127 P. 3d 1165, vacated and remanded.

BREYER, J., delivered the opinion of the Court, in which ROBERTS,

C. J., and KENNEDY, SOUTER, and ALITO, JJ., joined. STEVENS, J., and

THOMAS, J., filed dissenting opinions. GINSBURG, J., filed a dissenting

opinion, in which SCALIA and THOMAS, JJ., joined.

Cite as: 549 U. S. ____ (2007) 1

Opinion of the Court

NOTICE: This opinion is subject to formal revision before publication in the

preliminary print of the United States Reports. Readers are requested to

notify the Reporter of Decisions, Supreme Court of the United States, Wash

ington, D. C. 20543, of any typographical or other formal errors, in order

that corrections may be made before the preliminary print goes to press.

SUPREME COURT OF THE UNITED STATES

_________________

No. 05–1256

_________________

PHILIP MORRIS USA, PETITIONER v. MAYOLA

WILLIAMS, PERSONAL REPRESENTATIVE OF THE

ESTATE OF JESSE D. WILLIAMS,

DECEASED

ON WRIT OF CERTIORARI TO THE SUPREME COURT OF

OREGON

[February 20, 2007]

JUSTICE BREYER delivered the opinion of the Court.

The question we address today concerns a large state-

court punitive damages award. We are asked whether the

Constitution’s Due Process Clause permits a jury to base

that award in part upon its desire to punish the defendant

for harming persons who are not before the court (e.g.,

victims whom the parties do not represent). We hold that

such an award would amount to a taking of “property”

from the defendant without due process.

I

This lawsuit arises out of the death of Jesse Williams, a

heavy cigarette smoker. Respondent, Williams’ widow,

represents his estate in this state lawsuit for negligence

and deceit against Philip Morris, the manufacturer of

Marlboro, the brand that Williams favored. A jury found

that Williams’ death was caused by smoking; that Wil

liams smoked in significant part because he thought it was

safe to do so; and that Philip Morris knowingly and falsely

led him to believe that this was so. The jury ultimately

2 PHILIP MORRIS USA v. WILLIAMS

Opinion of the Court

found that Philip Morris was negligent (as was Williams)

and that Philip Morris had engaged in deceit. In respect

to deceit, the claim at issue here, it awarded compensatory

damages of about $821,000 (about $21,000 economic and

$800,000 noneconomic) along with $79.5 million in puni

tive damages.

The trial judge subsequently found the $79.5 million

punitive damages award “excessive,” see, e.g., BMW of

North America, Inc. v. Gore, 517 U. S. 559 (1996), and

reduced it to $32 million. Both sides appealed. The Ore

gon Court of Appeals rejected Philip Morris’ arguments

and restored the $79.5 million jury award. Subsequently,

Philip Morris sought review in the Oregon Supreme Court

(which denied review) and then here. We remanded the

case in light of State Farm Mut. Automobile Ins. Co. v.

Campbell, 538 U. S. 408 (2003). 540 U. S. 801 (2003). The

Oregon Court of Appeals adhered to its original views.

And Philip Morris sought, and this time obtained, review

in the Oregon Supreme Court.

Philip Morris then made two arguments relevant here.

First, it said that the trial court should have accepted, but

did not accept, a proposed “punitive damages” instruction

that specified the jury could not seek to punish Philip

Morris for injury to other persons not before the court. In

particular, Philip Morris pointed out that the plaintiff’s

attorney had told the jury to “think about how many other

Jesse Williams in the last 40 years in the State of Oregon

there have been. . . . In Oregon, how many people do we

see outside, driving home . . . smoking cigarettes? . . .

[C]igarettes . . . are going to kill ten [of every hundred].

[And] the market share of Marlboros [i.e., Philip Morris] is

one-third [i.e., one of every three killed].” App. 197a, 199a.

In light of this argument, Philip Morris asked the trial

court to tell the jury that “you may consider the extent of

harm suffered by others in determining what [the] reason

able relationship is” between any punitive award and “the

Cite as: 549 U. S. ____ (2007) 3

Opinion of the Court

harm caused to Jesse Williams” by Philip Morris’ miscon

duct, “[but] you are not to punish the defendant for the

impact of its alleged misconduct on other persons, who

may bring lawsuits of their own in which other juries can

resolve their claims . . . .” Id., at 280a. The judge rejected

this proposal and instead told the jury that “[p]unitive

damages are awarded against a defendant to punish mis

conduct and to deter misconduct,” and “are not intended to

compensate the plaintiff or anyone else for damages

caused by the defendant’s conduct.” Id., at 283a. In Philip

Morris’ view, the result was a significant likelihood that a

portion of the $79.5 million award represented punish

ment for its having harmed others, a punishment that the

Due Process Clause would here forbid.

Second, Philip Morris pointed to the roughly 100-to-1

ratio the $79.5 million punitive damages award bears to

$821,000 in compensatory damages. Philip Morris noted

that this Court in BMW emphasized the constitutional

need for punitive damages awards to reflect (1) the “rep

rehensibility” of the defendant’s conduct, (2) a “reasonable

relationship” to the harm the plaintiff (or related victim)

suffered, and (3) the presence (or absence) of “sanctions,”

e.g., criminal penalties, that state law provided for compa

rable conduct, 517 U. S., at 575–585. And in State Farm,

this Court said that the longstanding historical practice of

setting punitive damages at two, three, or four times the

size of compensatory damages, while “not binding,” is

“instructive,” and that “[s]ingle-digit multipliers are more

likely to comport with due process.” 538 U. S., at 425.

Philip Morris claimed that, in light of this case law, the

punitive award was “grossly excessive.” See TXO Produc

tion Corp. v. Alliance Resources Corp., 509 U. S. 443, 458

(1993) (plurality opinion); BMW, supra, at 574–575; State

Farm, supra, at 416–417.

The Oregon Supreme Court rejected these and other

Philip Morris arguments. In particular, it rejected Philip

4 PHILIP MORRIS USA v. WILLIAMS

Opinion of the Court

Morris’ claim that the Constitution prohibits a state jury

“from using punitive damages to punish a defendant for

harm to nonparties.” 340 Ore. 35, 51–52, 127 P. 3d 1165,

1175 (2006). And in light of Philip Morris’ reprehensible

conduct, it found that the $79.5 million award was not

“grossly excessive.” Id., at 63–64, 127 P. 3d, at 1181–1182.

Philip Morris then sought certiorari. It asked us to

consider, among other things, (1) its claim that Oregon

had unconstitutionally permitted it to be punished for

harming nonparty victims; and (2) whether Oregon had in

effect disregarded “the constitutional requirement that

punitive damages be reasonably related to the plaintiff’s

harm.” Pet. for Cert. (I). We granted certiorari limited to

these two questions.

For reasons we shall set forth, we consider only the first

of these questions. We vacate the Oregon Supreme

Court’s judgment, and we remand the case for further

proceedings.

II

This Court has long made clear that “[p]unitive dam

ages may properly be imposed to further a State’s legiti

mate interests in punishing unlawful conduct and deter

ring its repetition.” BMW, supra, at 568. See also Gertz v.

Robert Welch, Inc., 418 U. S. 323, 350 (1974); Newport v.

Fact Concerts, Inc., 453 U. S. 247, 266–267 (1981); Pacific

Mut. Life Ins. Co. v. Haslip, 499 U. S. 1, 22 (1991). At the

same time, we have emphasized the need to avoid an

arbitrary determination of an award’s amount. Unless a

State insists upon proper standards that will cabin the

jury’s discretionary authority, its punitive damages sys

tem may deprive a defendant of “fair notice . . . of the

severity of the penalty that a State may impose,” BMW,

supra, at 574; it may threaten “arbitrary punishments,”

i.e., punishments that reflect not an “application of law”

but “a decisionmaker’s caprice,” State Farm, supra, at 416,

Cite as: 549 U. S. ____ (2007) 5

Opinion of the Court

418 (internal quotation marks omitted); and, where the

amounts are sufficiently large, it may impose one State’s

(or one jury’s) “policy choice,” say as to the conditions

under which (or even whether) certain products can be

sold, upon “neighboring States” with different public

policies, BMW, supra, at 571–572.

For these and similar reasons, this Court has found that

the Constitution imposes certain limits, in respect both to

procedures for awarding punitive damages and to amounts

forbidden as “grossly excessive.” See Honda Motor Co. v.

Oberg, 512 U. S. 415, 432 (1994) (requiring judicial review

of the size of punitive awards); Cooper Industries, Inc. v.

Leatherman Tool Group, Inc., 532 U. S. 424, 443 (2001)

(review must be de novo); BMW, supra, at 574–585 (exces

siveness decision depends upon the reprehensibility of the

defendant’s conduct, whether the award bears a reason

able relationship to the actual and potential harm caused

by the defendant to the plaintiff, and the difference be

tween the award and sanctions “authorized or imposed in

comparable cases”); State Farm, supra, at 425 (excessive

ness more likely where ratio exceeds single digits). Be

cause we shall not decide whether the award here at issue

is “grossly excessive,” we need now only consider the

Constitution’s procedural limitations.

III

In our view, the Constitution’s Due Process Clause

forbids a State to use a punitive damages award to punish

a defendant for injury that it inflicts upon nonparties or

those whom they directly represent, i.e., injury that it

inflicts upon those who are, essentially, strangers to the

litigation. For one thing, the Due Process Clause prohibits

a State from punishing an individual without first provid

ing that individual with “an opportunity to present every

available defense.” Lindsey v. Normet, 405 U. S. 56, 66

(1972) (internal quotation marks omitted). Yet a defen

6 PHILIP MORRIS USA v. WILLIAMS

Opinion of the Court

dant threatened with punishment for injuring a nonparty

victim has no opportunity to defend against the charge, by

showing, for example in a case such as this, that the other

victim was not entitled to damages because he or she

knew that smoking was dangerous or did not rely upon the

defendant’s statements to the contrary.

For another, to permit punishment for injuring a non

party victim would add a near standardless dimension to

the punitive damages equation. How many such victims

are there? How seriously were they injured? Under what

circumstances did injury occur? The trial will not likely

answer such questions as to nonparty victims. The jury

will be left to speculate. And the fundamental due process

concerns to which our punitive damages cases refer—risks

of arbitrariness, uncertainty and lack of notice—will be

magnified. State Farm, 538 U. S., at 416, 418; BMW, 517

U. S., at 574.

Finally, we can find no authority supporting the use of

punitive damages awards for the purpose of punishing a

defendant for harming others. We have said that it may

be appropriate to consider the reasonableness of a punitive

damages award in light of the potential harm the defen

dant’s conduct could have caused. But we have made clear

that the potential harm at issue was harm potentially

caused the plaintiff. See State Farm, supra, at 424 (“[W]e

have been reluctant to identify concrete constitutional

limits on the ratio between harm, or potential harm, to the

plaintiff and the punitive damages award” (emphasis

added)). See also TXO, 509 U. S., at 460–462 (plurality

opinion) (using same kind of comparison as basis for find

ing a punitive award not unconstitutionally excessive).

We did use the term “error-free” (in BMW) to describe a

lower court punitive damages calculation that likely in

cluded harm to others in the equation. 517 U. S., at 568,

n. 11. But context makes clear that the term “error-free”

in the BMW footnote referred to errors relevant to the case

Cite as: 549 U. S. ____ (2007) 7

Opinion of the Court

at hand. Although elsewhere in BMW we noted that there

was no suggestion that the plaintiff “or any other BMW

purchaser was threatened with any additional potential

harm” by the defendant’s conduct, we did not purport to

decide the question of harm to others. Id., at 582. Rather,

the opinion appears to have left the question open.

Respondent argues that she is free to show harm to

other victims because it is relevant to a different part of

the punitive damages constitutional equation, namely,

reprehensibility. That is to say, harm to others shows

more reprehensible conduct. Philip Morris, in turn, does

not deny that a plaintiff may show harm to others in order

to demonstrate reprehensibility. Nor do we. Evidence of

actual harm to nonparties can help to show that the con

duct that harmed the plaintiff also posed a substantial

risk of harm to the general public, and so was particularly

reprehensible—although counsel may argue in a particu

lar case that conduct resulting in no harm to others none

theless posed a grave risk to the public, or the converse.

Yet for the reasons given above, a jury may not go further

than this and use a punitive damages verdict to punish a

defendant directly on account of harms it is alleged to

have visited on nonparties.

Given the risks of unfairness that we have mentioned, it

is constitutionally important for a court to provide assur

ance that the jury will ask the right question, not the

wrong one. And given the risks of arbitrariness, the con

cern for adequate notice, and the risk that punitive dam

ages awards can, in practice, impose one State’s (or one

jury’s) policies (e.g., banning cigarettes) upon other

States—all of which accompany awards that, today, may

be many times the size of such awards in the 18th and

19th centuries, see id., at 594–595 (BREYER, J., concur

ring)—it is particularly important that States avoid proce

dure that unnecessarily deprives juries of proper legal

guidance. We therefore conclude that the Due Process

8 PHILIP MORRIS USA v. WILLIAMS

Opinion of the Court

Clause requires States to provide assurance that juries are

not asking the wrong question, i.e., seeking, not simply to

determine reprehensibility, but also to punish for harm

caused strangers.

IV

Respondent suggests as well that the Oregon Supreme

Court, in essence, agreed with us, that it did not authorize

punitive damages awards based upon punishment for

harm caused to nonparties. We concede that one might

read some portions of the Oregon Supreme Court’s opinion

as focusing only upon reprehensibility. See, e.g., 340 Ore.,

at 51, 127 P. 3d, at 1175 (“[T]he jury could consider

whether Williams and his misfortune were merely exem

plars of the harm that Philip Morris was prepared to

inflict on the smoking public at large”). But the Oregon

court’s opinion elsewhere makes clear that that court held

more than these few phrases might suggest.

The instruction that Philip Morris said the trial court

should have given distinguishes between using harm to

others as part of the “reasonable relationship” equation

(which it would allow) and using it directly as a basis for

punishment. The instruction asked the trial court to tell

the jury that “you may consider the extent of harm suf

fered by others in determining what [the] reasonable rela

tionship is” between Philip Morris’ punishable misconduct

and harm caused to Jesse Williams, “[but] you are not to

punish the defendant for the impact of its alleged miscon

duct on other persons, who may bring lawsuits of their own

in which other juries can resolve their claims . . . .” App.

280a (emphasis added). And as the Oregon Supreme

Court explicitly recognized, Philip Morris argued that the

Constitution “prohibits the state, acting through a civil

jury, from using punitive damages to punish a defendant

for harm to nonparties.” 340 Ore., at 51–52, 127 P. 3d, at

1175.

Cite as: 549 U. S. ____ (2007) 9

Opinion of the Court

The court rejected that claim. In doing so, it pointed out

(1) that this Court in State Farm had held only that a jury

could not base its award upon “dissimilar” acts of a defen

dant. 340 Ore., at 52–53, 127 P. 3d, at 1175–1176. It

added (2) that “[i]f a jury cannot punish for the conduct,

then it is difficult to see why it may consider it at all.” Id.,

at 52, n. 3, 127 P. 3d, at 1175, n. 3. And it stated (3) that

“[i]t is unclear to us how a jury could ‘consider’ harm to

others, yet withhold that consideration from the punish

ment calculus.” Ibid.

The Oregon court’s first statement is correct. We did

not previously hold explicitly that a jury may not punish

for the harm caused others. But we do so hold now. We

do not agree with the Oregon court’s second statement.

We have explained why we believe the Due Process Clause

prohibits a State’s inflicting punishment for harm caused

strangers to the litigation. At the same time we recognize

that conduct that risks harm to many is likely more rep

rehensible than conduct that risks harm to only a few.

And a jury consequently may take this fact into account in

determining reprehensibility. Cf., e.g., Witte v. United

States, 515 U. S. 389, 400 (1995) (recidivism statutes

taking into account a criminal defendant’s other miscon

duct do not impose an “ ‘additional penalty for the earlier

crimes,’ but instead . . . ‘a stiffened penalty for the latest

crime, which is considered to be an aggravated offense

because a repetitive one’ ” (quoting Gryger v. Burke, 334

U. S. 728, 732 (1948))).

The Oregon court’s third statement raises a practical

problem. How can we know whether a jury, in taking

account of harm caused others under the rubric of repre

hensibility, also seeks to punish the defendant for having

caused injury to others? Our answer is that state courts

cannot authorize procedures that create an unreasonable

and unnecessary risk of any such confusion occurring. In

particular, we believe that where the risk of that misun

10 PHILIP MORRIS USA v. WILLIAMS

Opinion of the Court

derstanding is a significant one—because, for instance, of

the sort of evidence that was introduced at trial or the

kinds of argument the plaintiff made to the jury—a court,

upon request, must protect against that risk. Although

the States have some flexibility to determine what kind of

procedures they will implement, federal constitutional law

obligates them to provide some form of protection in ap

propriate cases.

V

As the preceding discussion makes clear, we believe that

the Oregon Supreme Court applied the wrong constitu

tional standard when considering Philip Morris’ appeal.

We remand this case so that the Oregon Supreme Court

can apply the standard we have set forth. Because the

application of this standard may lead to the need for a new

trial, or a change in the level of the punitive damages

award, we shall not consider whether the award is consti

tutionally “grossly excessive.” We vacate the Oregon

Supreme Court’s judgment and remand the case for fur

ther proceedings not inconsistent with this opinion.

It is so ordered.

Cite as: 549 U. S. ____ (2007) 1

STEVENS, J., dissenting

SUPREME COURT OF THE UNITED STATES

_________________

No. 05–1256

_________________

PHILIP MORRIS USA, PETITIONER v. MAYOLA

WILLIAMS, PERSONAL REPRESENTATIVE OF THE

ESTATE OF JESSE D. WILLIAMS,

DECEASED

ON WRIT OF CERTIORARI TO THE SUPREME COURT OF

OREGON

[February 20, 2007]

JUSTICE STEVENS, dissenting.

The Due Process Clause of the Fourteenth Amendment

imposes both substantive and procedural constraints on

the power of the States to impose punitive damages on

tortfeasors. See State Farm Mut. Automobile Ins. Co. v.

Campbell, 538 U. S. 408 (2003); Cooper Industries, Inc. v.

Leatherman Tool Group, Inc., 532 U. S. 424 (2001); BMW

of North America, Inc. v. Gore, 517 U. S. 559 (1996);

Honda Motor Co. v. Oberg, 512 U. S. 415 (1994); TXO

Production Corp. v. Alliance Resources Corp., 509 U. S.

443 (1993). I remain firmly convinced that the cases

announcing those constraints were correctly decided. In

my view the Oregon Supreme Court faithfully applied the

reasoning in those opinions to the egregious facts disclosed

by this record. I agree with JUSTICE GINSBURG’s explana

tion of why no procedural error even arguably justifying

reversal occurred at the trial in this case. See post, p. ___.

Of greater importance to me, however, is the Court’s

imposition of a novel limit on the State’s power to impose

punishment in civil litigation. Unlike the Court, I see no

reason why an interest in punishing a wrongdoer “for

harming persons who are not before the court,” ante, at 1,

should not be taken into consideration when assessing the

2 PHILIP MORRIS USA v. WILLIAMS

STEVENS, J., dissenting

appropriate sanction for reprehensible conduct.

Whereas compensatory damages are measured by the

harm the defendant has caused the plaintiff, punitive

damages are a sanction for the public harm the defen

dant’s conduct has caused or threatened. There is little

difference between the justification for a criminal sanc

tion, such as a fine or a term of imprisonment, and an

award of punitive damages. See Cooper Industries, 532

U. S., at 432. In our early history either type of sanction

might have been imposed in litigation prosecuted by a

private citizen. See Steel Co. v. Citizens for Better Envi

ronment, 523 U. S. 83, 127–128 (1998) (STEVENS, J., con

curring in judgment). And while in neither context would

the sanction typically include a pecuniary award meas

ured by the harm that the conduct had caused to any third

parties, in both contexts the harm to third parties would

surely be a relevant factor to consider in evaluating the

reprehensibility of the defendant’s wrongdoing. We have

never held otherwise.

In the case before us, evidence attesting to the possible

harm the defendant’s extensive deceitful conduct caused

other Oregonians was properly presented to the jury. No

evidence was offered to establish an appropriate measure

of damages to compensate such third parties for their

injuries, and no one argued that the punitive damages

award would serve any such purpose. To award compen

satory damages to remedy such third-party harm might

well constitute a taking of property from the defendant

without due process, see ante, at 1. But a punitive dam

ages award, instead of serving a compensatory purpose,

serves the entirely different purposes of retribution and

deterrence that underlie every criminal sanction. State

Farm, 538 U. S., at 416. This justification for punitive

damages has even greater salience when, as in this case,

see Ore. Rev. Stat. §31.735(1) (2003), the award is payable

in whole or in part to the State rather than to the private

Cite as: 549 U. S. ____ (2007) 3

STEVENS, J., dissenting

litigant.1

While apparently recognizing the novelty of its holding,

ante, at 9, the majority relies on a distinction between

taking third-party harm into account in order to assess the

reprehensibility of the defendant’s conduct—which is

permitted—from doing so in order to punish the defendant

“directly”—which is forbidden. Ante, at 7. This nuance

eludes me. When a jury increases a punitive damages

award because injuries to third parties enhanced the

reprehensibility of the defendant’s conduct, the jury is by

definition punishing the defendant—directly—for third-

party harm.2 A murderer who kills his victim by throwing

a bomb that injures dozens of bystanders should be pun

ished more severely than one who harms no one other

than his intended victim. Similarly, there is no reason

why the measure of the appropriate punishment for en

gaging in a campaign of deceit in distributing a poisonous

and addictive substance to thousands of cigarette smokers

——————

1 The Court’s holding in Browning-Ferris Industries of Vt., Inc. v.

Kelco Disposal, Inc., 492 U. S. 257 (1989), distinguished, for the pur

poses of appellate review under the Excessive Fines Clause of the

Eighth Amendment, between criminal sanctions and civil fines

awarded entirely to the plaintiff. The fact that part of the award in this

case is payable to the State lends further support to my conclusion that

it should be treated as the functional equivalent of a criminal sanction.

See id., at 263–264. I continue to agree with Justice O’Connor and

those scholars who have concluded that the Excessive Fines Clause is

applicable to punitive damages awards regardless of who receives the

ultimate payout. See id., at 286–299 (O’Connor, J., concurring in part

and dissenting in part).

2 It is no answer to refer, as the majority does, to recidivism statutes.

Ante, at 9. In that context, we have distinguished between taking prior

crimes into account as an aggravating factor in penalizing the conduct

before the court versus doing so to punish for the earlier crimes. Ibid.

But if enhancing a penalty for a present crime because of prior conduct

that has already been punished is permissible, it is certainly proper to

enhance a penalty because the conduct before the court, which has

never been punished, injured multiple victims.

4 PHILIP MORRIS USA v. WILLIAMS

STEVENS, J., dissenting

statewide should not include consideration of the harm to

those “bystanders” as well as the harm to the individual

plaintiff. The Court endorses a contrary conclusion with

out providing us with any reasoned justification.

It is far too late in the day to argue that the Due Process

Clause merely guarantees fair procedure and imposes no

substantive limits on a State’s lawmaking power. See,

e.g., Moore v. East Cleveland, 431 U. S. 494, 544 (1977)

(White, J., dissenting); Poe v. Ullman, 367 U. S. 497, 540–

541 (1961) (Harlan, J., dissenting); Whitney v. California,

274 U. S. 357, 373 (1927) (Brandeis, J., concurring). It

remains true, however, that the Court should be “reluc

tant to expand the concept of substantive due process

because guideposts for responsible decisionmaking in this

unchartered area are scarce and open-ended.” Collins v.

Harker Heights, 503 U. S. 115, 125 (1992). Judicial re

straint counsels us to “exercise the utmost care whenever

we are asked to break new ground in this field.” Ibid.

Today the majority ignores that sound advice when it

announces its new rule of substantive law.

Essentially for the reasons stated in the opinion of the

Supreme Court of Oregon, I would affirm its judgment.

Cite as: 549 U. S. ____ (2007) 1

THOMAS, J., dissenting

SUPREME COURT OF THE UNITED STATES

_________________

No. 05–1256

_________________

PHILIP MORRIS USA, PETITIONER v. MAYOLA

WILLIAMS, PERSONAL REPRESENTATIVE OF THE

ESTATE OF JESSE D. WILLIAMS,

DECEASED

ON WRIT OF CERTIORARI TO THE SUPREME COURT OF

OREGON

[February 20, 2007]

JUSTICE THOMAS, dissenting.

I join JUSTICE GINSBURG’s dissent in full. I write sepa

rately to reiterate my view that “ ‘the Constitution does

not constrain the size of punitive damages awards.’ ” State

Farm Mut. Automobile Ins. Co. v. Campbell, 538 U. S. 408,

429–430 (2003) (THOMAS, J., dissenting) (quoting Cooper

Industries, Inc. v. Leatherman Tool Group, Inc., 532 U. S.

424, 443 (2001) (THOMAS, J., concurring)). It matters not

that the Court styles today’s holding as “procedural” be

cause the “procedural” rule is simply a confusing imple

mentation of the substantive due process regime this

Court has created for punitive damages. See Pacific Mut.

Life Ins. Co. v. Haslip, 499 U. S. 1, 26–27 (1991) (SCALIA,

J., concurring in judgment) (“In 1868 . . . punitive dam

ages were undoubtedly an established part of the Ameri

can common law of torts. It is . . . clear that no particular

procedures were deemed necessary to circumscribe a jury’s

discretion regarding the award of such damages, or their

amount”). Today’s opinion proves once again that this

Court’s punitive damages jurisprudence is “insusceptible

of principled application.” BMW of North America, Inc. v.

Gore, 517 U. S. 559, 599 (1996) (SCALIA, J., joined by

THOMAS, J., dissenting).

Cite as: 549 U. S. ____ (2007) 1

GINSBURG, J., dissenting

SUPREME COURT OF THE UNITED STATES

_________________

No. 05–1256

_________________

PHILIP MORRIS USA, PETITIONER v. MAYOLA

WILLIAMS, PERSONAL REPRESENTATIVE OF THE

ESTATE OF JESSE D. WILLIAMS,

DECEASED

ON WRIT OF CERTIORARI TO THE SUPREME COURT OF

OREGON

[February 20, 2007]

JUSTICE GINSBURG, with whom JUSTICE SCALIA and

JUSTICE THOMAS join, dissenting.

The purpose of punitive damages, it can hardly be de

nied, is not to compensate, but to punish. Punish for

what? Not for harm actually caused “strangers to the

litigation,” ante, at 5, the Court states, but for the repre

hensibility of defendant’s conduct, ante, at 7–8. “[C]onduct

that risks harm to many,” the Court observes, “is likely

more reprehensible than conduct that risks harm to only a

few.” Ante, at 9. The Court thus conveys that, when

punitive damages are at issue, a jury is properly in

structed to consider the extent of harm suffered by others

as a measure of reprehensibility, but not to mete out

punishment for injuries in fact sustained by nonparties.

Ante, at 7–9. The Oregon courts did not rule otherwise.

They have endeavored to follow our decisions, most re

cently in BMW of North America, Inc. v. Gore, 517 U. S.

559 (1996), and State Farm Mut. Automobile Ins. Co. v.

Campbell, 538 U. S. 408 (2003), and have “deprive[d] [no

jury] of proper legal guidance,” ante, at 7. Vacation of the

Oregon Supreme Court’s judgment, I am convinced, is

unwarranted.

2 PHILIP MORRIS USA v. WILLIAMS

GINSBURG, J., dissenting

The right question regarding reprehensibility, the Court

acknowledges, ante, at 8, would train on “the harm that

Philip Morris was prepared to inflict on the smoking pub

lic at large.” Ibid. (quoting 340 Ore. 35, 51, 127 P. 3d

1165, 1175 (2006)). See also 340 Ore., at 55, 127 P. 3d, at

1177 (“[T]he jury, in assessing the reprehensibility of

Philip Morris’s actions, could consider evidence of similar

harm to other Oregonians caused (or threatened) by the

same conduct.” (emphasis added)). The Court identifies no

evidence introduced and no charge delivered inconsistent

with that inquiry.

The Court’s order vacating the Oregon Supreme Court’s

judgment is all the more inexplicable considering that

Philip Morris did not preserve any objection to the charges

in fact delivered to the jury, to the evidence introduced at

trial, or to opposing counsel’s argument. The sole objec

tion Philip Morris preserved was to the trial court’s re

fusal to give defendant’s requested charge number 34. See

id., at 54, 127 P. 3d, at 1176. The proposed instruction

read in pertinent part:

“If you determine that some amount of punitive

damages should be imposed on the defendant, it will

then be your task to set an amount that is appropri

ate. This should be such amount as you believe is

necessary to achieve the objectives of deterrence and

punishment. While there is no set formula to be ap

plied in reaching an appropriate amount, I will now

advise you of some of the factors that you may wish to

consider in this connection.

“(1) The size of any punishment should bear a reason

able relationship to the harm caused to Jesse Wil

liams by the defendant’s punishable misconduct. Al

though you may consider the extent of harm suffered

by others in determining what that reasonable rela

tionship is, you are not to punish the defendant for

Cite as: 549 U. S. ____ (2007) 3

GINSBURG, J., dissenting

the impact of its alleged misconduct on other persons,

who may bring lawsuits of their own in which other

juries can resolve their claims and award punitive

damages for those harms, as such other juries see fit.

. . . . .

“(2) The size of the punishment may appropriately re

flect the degree of reprehensibility of the defendant’s

conduct—that is, how far the defendant has departed

from accepted societal norms of conduct.” App. 280a.

Under that charge, just what use could the jury properly

make of “the extent of harm suffered by others”? The

answer slips from my grasp. A judge seeking to enlighten

rather than confuse surely would resist delivering the

requested charge.

The Court ventures no opinion on the propriety of the

charge proposed by Philip Morris, though Philip Morris

preserved no other objection to the trial proceedings.

Rather than addressing the one objection Philip Morris

properly preserved, the Court reaches outside the bounds

of the case as postured when the trial court entered its

judgment. I would accord more respectful treatment to

the proceedings and dispositions of state courts that

sought diligently to adhere to our changing, less than

crystalline precedent.

* * *

For the reasons stated, and in light of the abundant

evidence of “the potential harm [Philip Morris’] conduct

could have caused,” ante, at 6 (emphasis deleted), I would

affirm the decision of the Oregon Supreme Court.