Elaine Hess, etc. v. Philip Morris USA, Inc.
175 So. 3d 687
| Fla. | 2015Background
- Hess sued PM USA for fraudulent concealment among other claims in Broward County.
- The Fourth District under Hess v. PM USA held the fraud statute of repose barred if no reliance within 1982–1994 period.
- Engle progeny created a framework where Phase I findings can have res judicata effect but require individual causation and reliance determinations.
- PM USA argued the repose period requires proof of reliance within the repose window.
- The Florida Supreme Court held the repose is triggered by the defendant’s last act or omission, not by post-1982 reliance, and precluded PM USA’s repose defense only if wrongful conduct occurred within the repose period.
- The Court reinstated the jury verdict and reversed the Fourth District, approving Frazier and Kush/Laschke findings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the fraud statute of repose bars Engle-progeny fraud claims | Hess argues reliance within the repose period is required | PM USA contends no reliance within 1982–1994 is essential | No; last act triggers repose, not solely reliance within period |
| Is reliance during the repose period required for Engle-progeny fraudulent concealment claims | Evidence of concealment within repose supports claims | Reliance during repose is necessary under Hess/4th DCA | Reliance during repose not required if defendant’s last act within repose shown |
Key Cases Cited
- Engle v. Liggett Group, Inc., 945 So. 2d 1246 (Fla. 2006) (Engle class litigation framework; Phase I findings and res judicata effects; causation later)
- Kush v. Lloyd, 616 So.2d 415 (Fla. 1992) (Statute of repose runs from discrete defendant act; no tolling for repose)
- Laschke v. Brown & Williamson Tobacco Corp., 766 So.2d 1076 (Fla. 2d DCA 2000) (Last act in furtherance of conspiracy triggers repose in Engle context)
- Diamond v. E.R. Squibb & Sons, Inc., 397 So.2d 671 (Fla. 1981) (Fraud/medical contexts; statutory interpretation groundwork)
- Frazier v. Philip Morris USA Inc., 89 So.3d 937 (Fla. 3d DCA 2012) (Held reliance after May 5, 1982 not necessary for repose in Engle progeny)
- Engle v. Liggett Group, Inc. (Engle class), 11 So.3d 424 (Fla. 3d DCA 2009) (Engle progeny decisions guiding res judicata effects and reliance issues)