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195 So. 3d 1139
Fla. Dist. Ct. App.
2015
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Background

  • This is an Engle-progeny wrongful-death/smoking case: Cindy Evers sued as personal representative of Jacqueline Loyd’s estate against R.J. Reynolds (successor to Lorillard) for claims including strict liability, negligence, fraudulent concealment, and conspiracy to conceal health risks of smoking.
  • The trial jury returned verdicts on multiple claims and assessed punitive damages; the trial court afterward granted the tobacco companies’ motion for directed verdict on the fraudulent-concealment and conspiracy-to-conceal claims, removing those claims and their attendant punitive damages from the judgment.
  • The trial court concluded Evers presented no evidence that Loyd saw, heard, or read any statements that omitted material information or that Loyd relied on such statements; the court relied on precedent it viewed as limiting inference of reliance from circumstantial evidence.
  • On appeal the Second District reversed the directed verdict, holding a jury could infer reliance from circumstantial evidence like pervasive, misleading advertising and industry-created controversy about health risks; the court reinstated the fraud and conspiracy verdicts and the related punitive damages.
  • The appellate court declined to address specific challenges to the punitive damage amount, remanding so the trial court can consider those issues in the first instance; other trial-court rulings (including denial of a new trial) were affirmed without extended comment.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether a directed verdict on fraud by concealment and conspiracy was appropriate because plaintiff failed to prove reliance Reliance may be inferred from circumstantial evidence (pervasive, misleading tobacco advertising and manufactured controversy) so jury could find Loyd relied on industry conduct No direct evidence Loyd saw or relied on misleading statements; Loyd knew smoking risk so reliance cannot be inferred Reversed. A directed verdict was improper; jury could infer reliance from circumstantial evidence and the fraud/conspiracy verdicts were reinstated
Whether precedent permits inference of reliance from circumstantial, industry-wide conduct Relied on Martin and Hallgren: pervasive misleading campaigns allow inference of reliance Relied on Humana to argue reliance cannot be inferred from circumstantial evidence; alternatively argued Loyd was aware of risks so she could not have relied Court followed Hallgren/Martin approach, rejecting Humana as controlling; reliance inference allowed
Whether punitive damages tied to the vacated fraud claims must be reinstated Punitive damages attendant to the fraud/conspiracy verdicts should stand if those claims are reinstated Argued punitive award should be disturbed and raised other challenges (not fully resolved below) Because fraud/conspiracy verdicts reinstated, punitive damages reinstated; appellate court declined to decide subsidiary punitive-damage issues and remanded

Key Cases Cited

  • Engle v. Liggett Group, Inc., 945 So. 2d 1246 (Fla. 2006) (class‑action Phase I findings have preclusive effect in Engle‑progeny cases)
  • R.J. Reynolds Tobacco Co. v. Martin, 53 So. 3d 1060 (Fla. 1st DCA 2010) (reliance may be inferred from pervasive cigarette advertising and industry‑created controversy)
  • Humana, Inc. v. Castillo, 728 So. 2d 261 (Fla. 2d DCA 1999) (discussed as authority limiting inference of reliance from circumstantial evidence)
  • Philip Morris USA, Inc. v. Hallgren, 124 So. 3d 350 (Fla. 2d DCA 2013) (approves Martin and allows inference of reliance from pervasive misleading advertising)
  • Sims v. Cristinzio, 898 So. 2d 1004 (Fla. 2d DCA 2005) (directed‑verdict standard; view evidence in light most favorable to nonmoving party)
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Case Details

Case Name: Evers v. R.J. Reynolds Tobacco Company
Court Name: District Court of Appeal of Florida
Date Published: Nov 6, 2015
Citations: 195 So. 3d 1139; 2015 Fla. App. LEXIS 16718; 2015 WL 6777150; 2D13-2553
Docket Number: 2D13-2553
Court Abbreviation: Fla. Dist. Ct. App.
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