April 7: Big Tobacco Braces For Big Hit

Name: Gary Balletto Age: 30 Hometown: Johnston, R.I. Pro Record: (29-2-2), 25 KOs Fast Fact: Balletto witnessed the death of his friend Bobby Tomasello, and it prompted him to help unionize the sport.
Big tobacco is now one step closer to the massive damage award it's long feared, reports CBS News Correspondent Jim Axelrod.

A Florida jury Friday awarded three smokers $12.7 million to compensate them for pain, suffering, medical expenses and lost wages due to smoking.

That figure will be multiplied to cover an estimated half-million Florida smokers in the next phase of the trial, the first smokers' class-action suit ever to come to trial.

The tobacco industry fears that the compensatory damages announced Friday could be dwarfed by a ruinous $300 billion award in the next phase, seeking punitive damages for an estimated 500,000 sick smokers.

Bulletin Board

Is Big Tobacco financially responsible for smoking related health care costs?
Click here to share your opinion.
The result of that phase could affect smokers all over the country and the future of the whole tobacco industry.

Friday, the jury awarded $2.85 million to nurse Mary Farnan, $4.02 million to the husband of the late Angie Della Vecchia and $5.83 million to woodworker Frank Amodeo.

In Amodeo's case, the jury also ruled that he should be barred from collecting the money because a four-year statute of limitations had expired on his claim.

Circuit Judge Robert Kaye said he would decide later how to handle that award, given the jury's conflicting ruling.

The jury deliberated for a little more than two days in the latest chapter of a trial that began in October 1998.

Testimony in the compensatory phase began last November.

Legal Analysis
CBSNews.com Legal Analyst Andrew Cohen explains how three Florida smokers frightened the five bggest tobacco companies.

Click here to read it.

Jurors heard microscopic details of cancer in Farnan, 44, Della Vecchia, who died at 53, and Amodeo, 60.

Both women started smoking at age 11. Della Vecchia smoked for 40 years and Farnan for 29. Amodeo started smoking at 14 and kept it up for 34 years.

The plaintiffs cited old television commercials, like one in which an adolescent bellhop asked viewers, "Have you tried Philip Morris lately? Believe me, it's a great cigarette."

Smokers' attorney Stanley Rosenblatt argued all three smokers became addicted in the 1950s -- long before they became aware of the health dangers of smoking.

Plaintiff Frank Amodeo, who hasn't eaten food in 13 years, said "The cancer killed my throat. It destroyed the tissues in the back of my throat. It destroyed all the mobility in my throat."

Last summer, the jury decided that the industry fraudulently conspired to produce a dangerous, addictive product that caused 29 illnesses, including cancer and heart disease.

Read previous CBS News stories about the tobacco trials:
  • Jury To Decide Damages
  • Arguments End In Damage Phase
  • Global Tobacco Inquiry Begins
  • Supreme Court Limits FDA Role
  • Truce In The Tobacco Wars?
  • Clinton Attacks Tobacco
  • Damage Phase Begins
  • California Smoker Awarded $20 Million
  • The industry disputed smoking as a cause of the smokers' cancers, fought their addiction claims and said they should not be rewarded for continuing to smoke years after health dangers became widely known.

    The defendants are Philip Morris Inc., R.J. Reynolds Tobacco Co., Brown & Williamson, Lorillard Tobacco Co., Liggett Group Inc. and the industry's Council for Tobacco Research and Tobacco Intitute.

    "We're looking forward to trying the next phase of this case," said Dan Webb, the lead tobacco attorney in the case. "We have never believed this jury would award a large amount of damages to thousands of unidentified smokers."

    The judge and attorneys scheduled a closed-door session Monday to determine the next step.

    The smokers' attorneys hope to begin the third phase of the trial as soon as possible, but the industry wants to delay until mid-May.

    The tobacco companies also could appeal the damage award before the punitive phase begins—with the same six jurors who ruled against them Friday.

    Under Florida law, a punitive verdict cannot put a company out of business.

    Around the United States, juries have awarded damages to individual smokers only six times. Three verdicts were overturned, two are on appeal, and one was returned last month with a record $1.72 million compensatory award to a single smoker.

    The industry has yet to pay anything in a smoker's case but has started paying on $246 billion in settlements with states.