338 So.3d 831
Fla.2022Background
- John C. Price smoked heavily, developed COPD, and died; Linda Prentice (personal representative) pursued wrongful-death claims against R.J. Reynolds (RJR) for strict liability, negligence, fraudulent concealment, and conspiracy to conceal.
- The litigation is an Engle-progeny case: certain Phase I findings from Engle v. Liggett Group, Inc. (regarding tobacco defendants’ concealment/omissions about health/addictiveness) are given res judicata effect for individual suits.
- A jury found Price was an Engle class member and returned verdicts for Prentice on strict liability, negligence, and concealment conspiracy (but not fraudulent concealment), awarding $6.4 million and allocating fault 60% to Price / 40% to RJR; the concealment conspiracy verdict barred reduction for comparative fault.
- RJR appealed, challenging the trial court’s reliance instruction for the concealment conspiracy claim; the First DCA vacated the judgment based on Whitmire (holding Engle-progeny plaintiffs must prove detrimental reliance on fraudulent statements).
- Other district courts (Second, Third, Fourth) had held Engle plaintiffs may prove reliance by inference from pervasive industry advertising and need not identify a specific statement, creating a conflict.
- The Florida Supreme Court resolved the conflict: it held an Engle-progeny plaintiff must prove reliance on a statement (which may be a category of statements) made by an Engle defendant or co-conspirator that concealed or omitted material information about smoking’s health effects or addictiveness; the trial court’s instruction that permitted "reliance on omission/conspiracy" was erroneous.
Issues
| Issue | Plaintiff's Argument (Prentice) | Defendant's Argument (RJR) | Held |
|---|---|---|---|
| Whether an Engle-progeny plaintiff must prove reliance on a statement (vs. reliance on silence/omission) | Reliance may be inferred from pervasive industry conduct and silence; plaintiff need not point to a statement. | Plaintiff must prove reliance on a statement that induced the plaintiff’s false belief. | Held: Plaintiff must prove reliance on a statement by an Engle defendant/co-conspirator that concealed or omitted material information about health/addictiveness. |
| Whether "a statement" requires a specific utterance or may be proven by category/campaign and inference | Reliance can be shown by inference from industry-wide advertising/campaigns and plaintiff’s smoking history. | Reliance need not be tied to a single ad; a category of statements or campaign can suffice if they caused the plaintiff’s beliefs. | Held: Reliance need not be a single specific statement; a plaintiff may rely on a category or campaign of statements so long as there is proof connecting those statements to the plaintiff’s beliefs and injury. |
| Whether the trial court instruction ("reliance on conspiracy/omission") was proper | Instruction allowed jury to find causation from concealment and pervasive conduct; inference was appropriate. | Instruction was legally deficient because it did not require reliance on a statement. | Held: Instruction was erroneous and prejudicial; instruction must require proof of reliance on statements, not mere nondisclosure or reliance on a conspiracy. |
Key Cases Cited
- Engle v. Liggett Group, Inc., 945 So. 2d 1246 (Fla. 2006) (Phase I findings on defendants’ concealment given res judicata effect in progeny suits)
- Philip Morris USA, Inc. v. Douglas, 110 So. 3d 419 (Fla. 2013) (clarifying use of approved Phase I findings in Engle-progeny cases)
- Hess v. Philip Morris USA, Inc., 175 So. 3d 687 (Fla. 2015) (stating Engle-progeny plaintiffs must prove detrimental reliance for concealment claims)
- R.J. Reynolds Tobacco Co. v. Whitmire, 260 So. 3d 536 (Fla. 1st DCA 2018) (held Engle-progeny plaintiffs must prove reliance on fraudulent statements)
- R.J. Reynolds Tobacco Co. v. Prentice, 290 So. 3d 963 (Fla. 1st DCA 2019) (first-DCA decision under review addressing the disputed jury instruction)
- Philip Morris USA, Inc. v. Duignan, 243 So. 3d 426 (Fla. 2d DCA 2017) (held plaintiff need not identify a specific statement; reliance may be inferred)
- R.J. Reynolds Tobacco Co. v. Burgess, 294 So. 3d 910 (Fla. 4th DCA 2020) (affirmed inference of reliance from pervasive advertising)
- Philip Morris USA, Inc. v. Chadwell, 306 So. 3d 174 (Fla. 3d DCA 2020) (rejected Whitmire to the extent it required proof of reliance on a specific statement)
- R.J. Reynolds Tobacco Co. v. Martin, 53 So. 3d 1060 (Fla. 1st DCA 2010) (earlier First DCA decision recognizing reliance can be inferred from pervasive misleading advertising)
- Schoeff v. R.J. Reynolds Tobacco Co., 232 So. 3d 294 (Fla. 2017) (discussing effect of intentional torts on comparative fault reductions)
