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discussed. Limits could be established on the amount paid to each claimant or could be
imposed only on future claims, or only on past ones. Within the context of the settlement
as a whole, we should explore whether liability caps can be part of a creative scheme that
also furthers the goals discussed earlier.
One critical issue, of course, is whether annual caps or other mechanisms would
afford sufficient funds to meet the needs of victims or whether they should be raised. It
may be valuable for Congress to ask that the tobacco manufacturers share their calculations
and research concerning the likely dollar requirements of those injured by tobacco products.
C.
Limits on Punitive Damages
Under the settlement, all punitive damages claims would be extinguished with
respect to conduct taking place prior to the effective date of the bill enacting the settlement.
Punitive damages could be awarded with respect to conduct taking place after passage of
the legislation.
The purpose of punitive damages is to deter and punish. Congress is being asked to
remove this tool with respect to the tobacco manufacturers' past conduct. At the same
time, however, Congress is considering legislative provisions that will serve similar
purposes. In considering punitive damages provisions, Congress should consider the
overall legislative package and the framework it establishes for deterring future wrongdoing
and serving the public interest. Congress could consider whether separate punitive damages
limitations are needed if annual caps govern manufacturers' total liability. Moreover,
Congress could consider alternatives such as capping punitive damages or perhaps most
interestingly -- retaining punitive damages with respect to claims based on facts not
20
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"ocrText": "R 02/03/98 MON 09:40 FAX\n5\n021\ndiscussed. Limits could be established on the amount paid to each claimant or could be\nimposed only on future claims, or only on past ones. Within the context of the settlement\nas a whole, we should explore whether liability caps can be part of a creative scheme that\nalso furthers the goals discussed earlier.\nOne critical issue, of course, is whether annual caps or other mechanisms would\nafford sufficient funds to meet the needs of victims or whether they should be raised. It\nmay be valuable for Congress to ask that the tobacco manufacturers share their calculations\nand research concerning the likely dollar requirements of those injured by tobacco products.\nC.\nLimits on Punitive Damages\nUnder the settlement, all punitive damages claims would be extinguished with\nrespect to conduct taking place prior to the effective date of the bill enacting the settlement.\nPunitive damages could be awarded with respect to conduct taking place after passage of\nthe legislation.\nThe purpose of punitive damages is to deter and punish. Congress is being asked to\nremove this tool with respect to the tobacco manufacturers' past conduct. At the same\ntime, however, Congress is considering legislative provisions that will serve similar\npurposes. In considering punitive damages provisions, Congress should consider the\noverall legislative package and the framework it establishes for deterring future wrongdoing\nand serving the public interest. Congress could consider whether separate punitive damages\nlimitations are needed if annual caps govern manufacturers' total liability. Moreover,\nCongress could consider alternatives such as capping punitive damages or perhaps most\ninterestingly -- retaining punitive damages with respect to claims based on facts not\n20"
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