Smoked!

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The tobacco industry insisted, however, that last week's action would have "no practical impact." Tobacco-company lawyers quickly ticked off grounds for reversing the results of the trial, which Philip Morris lawyer Dan Webb called "an unfair procedure, unheard of in American history." The Florida courts should never have permitted the case to proceed as a class action, the tobacco lawyers said, and they were harshly critical of the record-setting award. Under Florida law, punitive damages cannot be so large that they bankrupt a defendant. The defendants contend that the $145 billion award would do just that. "There's absolutely no question it would put every one of these companies out of business five times over," said Webb. The companies have said the most they can afford to pay is $150 million to $375 million, figures that critics dismissed as ludicrously low.

Whatever the merits of their appeal, the tobacco companies are hoping at the least to buy time by dragging the proceedings out. They contend that there must now be individual, factual trials for each of the roughly 500,000 class members. Even with 100 judges working full time, says Philip Morris lawyer Greg Little, "that could take decades."

An important question for the defendants is how much money they will have to put up during the appeals process. Typically, the loser must post the full amount of the award while the case is under appeal. The Florida legislature passed a law this year capping the size of the appeal bond that each tobacco company must post at $100 million--a law the plaintiffs are challenging. If the cap is removed, the tobacco companies could conceivably be forced to file for bankruptcy, which would disrupt this case as well as the $209 billion settlement with the states, part of which goes to Florida.

Wall Street dismissed the $145 billion setback as if it were a parking ticket. Tobacco stocks were off marginally, indicating that investors had already priced the decision into the shares. And industry analysts remain bullish. "The scale of the verdict speaks to the unconstitutionality and the absurdity of the whole process," says David Adelman of Morgan Stanley Dean Witter.

Some legal experts beg to differ, saying the threat to tobacco is quite real. University of Miami law professor Clark Freshman notes that the state appellate courts have already ruled for the plaintiffs on two key points: the courts okayed the size of the class, and they agreed that any punitive damages could be ordered to be paid out all at once.

The last time the tobacco industry faced potentially crushing liability--at the hands of the states--it decided to settle, a course Rosenblatt seemed to encourage. Speaking after the verdict, he delivered an unusually angry--and personal--challenge to Philip Morris' CEO. "Geoffrey Bible, I'm available, pal," he bellowed to a crowd of reporters. "Mr. Bible, with all your shareholder meetings and all your stock and your $25 million bonuses, yes, and all your tough talk. Mr. Bible, call me next week. I'll take a payout."

Hours after the verdict, Rosenblatt got an answer: Don't wait by the phone. The company made it clear it wasn't going to settle and dismissed him as a lawyer who was running scared. "He knows the case will not withstand scrutiny at the appellate level," company lawyer Little said.

Rosenblatt and his co-counsel, wife Susan, later took the high road, saying that by holding the tobacco companies publicly accountable, they've already racked up an important victory. "This was never only about money," Rosenblatt said. "This was about showing up these companies for what they really are." Many of the plaintiffs--some of whom are unlikely to live to collect any damages--agreed. "No amount of money is going to change the way I have to eat," says throat-cancer victim Amodeo, who has to ingest nutrition through a hole in his stomach. "Fifteen cents, $15 million--it doesn't change it."