Whether punitive damages will be unlimited or not available at all in the bellwether trial for the Tylenol MDL will depend on whether Alabama or New Jersey law applies.

The case, scheduled for trial in June, is one of about 200 in the multidistrict litigation alleging that McNeil, the maker of Tylenol, knew that its drug could cause liver damage at the recommended dosage. It was brought by the sister of a woman who died of liver failure in Alabama in 2010 after taking Tylenol.

While the parties agree that Alabama law governs the substantive claims in the case, they disagree on what state's law governs the wrongful-death claim. McNeil argued the law of New Jersey—where McNeil's parent company, Johnson & Johnson, is headquartered—would control. The plaintiff argues that Alabama law, or, alternatively, Pennsylvania law, would control. McNeil manufactures Tylenol at its Fort Washington plant.