Harsh Punishment on the Horizon for Company, and Perhaps its Executives, Who Failed to Warn

A federal judge in Minnesota has rejected a proposed plea agreement between the federal government and Guidant Corporation, in which Guidant had agreed to plead guilty to two criminal misdemeanors and to pay a $296 million fine for continuing to sell heart defibrillators after discovering that some might short-circuit and fail, The New York Times reports. Federal Judge Donovan W. Frank said, in his 37-page opinion [PDF], that provisions of the agreement were not in the best interest of justice and do not serve the public’s interest because they do not adequately address Guidant’s history and the criminal conduct at issue.”

The problems associated with Guidant’s defibrillators, which have reportedly been associated with 6 deaths, came to light in 2005 when The New York Times published an article based on interviews of two Minneapolis cardiologists who treated Joshua Oukrup, a 21-year-old college student who reportedly died when his Guidant defibrillator short-circuited as it was charging to send out its life-saving jolt. Although Guidant had reportedly become aware of the defect associated with its product, its representatives merely fixed the flaw in new devices without warning doctors or regulators about the problem. As such, patients continued to get the potentially flawed older devices because the company did not pull them from hospital shelves.

Guidant’s chief medical officer explained that “the company had not seen a compelling reason to issue an alert to physicians about the defibrillators because the failure rate was very low and replacing the devices might pose greater patient risks.”

Mr. Oukrup’s treating cardiologist said that this was “a statistical argument that has little to do with real people.” In fact, prior to Judge Frank’s April 27 ruling, Mr. Oukrup’s two treating cardiologists wrote a letter [PDF] to the court urging the judge to reject the plea agreement. The doctors wrote that they were “extremely dismayed” with the decision to enter such an agreement with the company rather than to “prosecute the company and the individuals responsible for this egregious act.”

Judge Frank noted in his ruling that it is up to prosecutors, not the court, to decide who should be prosecuted. But his rebuke of the proffered plea deal certainly calls into question: “Who should be held accountable when a company sells a flawed product that can injure or kill patients? Is it the company or the people who run it?”

Defective Vacuum Sucks Hair Out of Scalp, Suit Says

An Illinois woman has recently filed suit against Ohio-based vacuum manufacturer The Kirby Company for $200,000, reports the Chicago Sun-Times, alleging her defective vacuum cleaner broke during use and sucked the hair out of her scalp.

The complaint, filed in U.S. District Court in Illinois on April 23, reportedly sets forth that the vacuum was “defective and unreasonably dangerous” and that Kirby sold the vacuum without adequate testing and without proper warnings of the hazards of personal injuries. The plaintiff’s Chicago-area lawyer, Thomas A. Reed, to whom the plaintiff referred all questions, has told the media that his client was using the vacuum hose to clean underneath her bed when the attachment broke, “causing a tremendous sucking that took her hair right into the machine.” He declined to discuss the extent of his client’s injuries, but did indicate that she was rushed to the emergency room after the incident.

The suit has generated considerable discussion. See local Chicago NBC coverage here, where a poll shows that 79 percent of Chicago locals think the story is laughable, or commentary here, where one writer notes the marketing potential (“Hairs on the floor don’t stand a chance!”).

In spite of the skepticism surrounding the suit, there appears to be evidence to suggest her claim may have legs. Video coverage at Fox News includes pictures of the woman’s scalp allegedly showing the injury to her head. The pictures were thought to be so disturbing that the affected area of the woman’s scalp were blurred for the television clip.

It’s certainly an interesting set of facts. We’ll have to see where this one goes.

Big Verdict in Texas Boat Propeller Strike Case

In what was reportedly the first successful case against the boating industry brought by a person injured by a motor, and in a case that could have huge implications in the industry, a Texas federal jury this month awarded a teen Plaintiff $3.8 million in damages after the his leg was severed by a boat propeller. The case, heard by federal district court Judge Sam Sparks, was actually tried thrice, as the first two trials resulted in hung juries. Brochtrup v. Mercury Marine, C/A No. 1:07-CV-00643-SS, Western District of Texas, Austin Division (April 5, 2010). We here at Abnormal Use have previously reported on a watercraft warning case here.

The Plaintiff, then 18 years old, was boating with friends on Lake Austin in the summer of 2005. He had just returned to the boat from wakeboarding when the tow rope fell in the water. When the Plaintiff jumped back in the water at the rear of the boat to retrieve the line, his friend and 18-year-old driver put the boat in reverse. The boat’s propeller caught the top of the Plaintiff’s leg and twisted it around, causing extensive blood loss and eventual loss of his leg. See local news coverage of the accident here .

The Plaintiff filed suit against the parent company of Sea Ray Boats, alleging that the boat should have been equipped with safety devices, such as guards or covers, to prevent the plaintiff from becoming entangled or stuck. However, the U.S. marine industry reportedly has fought the idea installing prop guards on motors because no design has ever been proven safe or effective for maneuvering boats. The U.S. Coast Guard has agreed, and has consistently refused to order boat and engine builders to install prop guards.

Apparently, though, this Texas jury didn’t buy it. It found both the Plaintiff and the driver (who was not named a defendant) of the boat each to be 17% negligent, and the defendant 66% negligent and responsible for the injury. Its award of damages included $200,000 for past physical pain and anguish, $200,000 for future physical pain and mental anguish, and $100,000 for disfigurement.

The decision has naturally drawn harsh criticism from the industry, which points out the common-sense factor at work here and the fact that all motors are “emblazoned” with pronounced warnings. It likens the facts on this case to the infamous McDonald’s hot coffee suit. This case, which Brunswick Corp has said it intends to appeal, may be one to watch, as it surely will have a profound effect on the boating industry.

Defective Sperm Not Actionable in the Third Circuit

In a case we briefly addressed Friday, and in what has been called the first decision of its kind, the U.S. Court of Appeals for the Third Circuit this month upheld a lower court’s 2009 ruling that genetic defects in sperm from a sperm bank cannot form the basis of a products liability suit. To allow such a claim to go forward, the court held, would be tantamount to recognizing a claim for “wrongful life.” D.D. v. Idant Laboratories, Slip Copy, No. 09-3460 (3d Cir. April 1, 2010).

The Plaintiff brought suit both in her individual capacity and as parent and guardian of her minor daughter against the New York-based sperm bank, setting forth causes of action for strict products liability and breach of express and implied warranties of merchantability. The Plaintiff began her research to find a sperm bank in 1994, when she was promised by Defendant Idant Laboratories that its donors went though a rigorous screening process to ensure they had good genetic backgrounds and that the company employed a screening program that far exceeded mandated standards. She thereafter purchased sperm from the Defendant and gave birth to her daughter in 1996. The Plaintiff then began to notice abnormalities in her daughter’s development. Subsequent genetic testing revealed that the child had Fragile X syndrome, a genetic mutation that causes mental retardation and behavioral disorders, as a result of the genetic defect of the sperm donor.

Initially, the district court judge ruled that, pursuant to New York law, the sperm bank could be sued under products liability laws because “the sale of sperm is considered a product and is subject to strict liability.” However, two months later, the judge reversed himself and dismissed the case in its entirety, predicting that New York’s appellate court would reject Plaintiff’s claims.

The Third Circuit affirmed the judge’s second decision. In a thought-provoking opinion penned by Circuit Judge Maryanne Trump Barry, (interestingly, she’s Donald Trump’s older sister), she held that the child’s impaired genetic makeup was not a cognizable injury. She explained:

Wrongful life cases pose particularly thorny problems in the damages context. Simply put, a cause of action brought on behalf of an infant seeking recovery for wrongful life demands a calculation of damages dependant upon a comparison between the Hobson’s choice of life in an impaired state and nonexistence. This comparison the law is not equipped to make. . . . The difficulties that [the child] now faces and will face are surely tragic, but . . . she like any other child, does not have a protected right to be born free of genetic defects. To find to the contrary would invite litigation for any number of claimed injuries and, even more problematic, require courts to identify certain traits below some arbitrarily established marker of perfection as “injuries.”

D.D. at *10, 11 (internal citations omitted).

“Whether it is better never to have been born at all than to have been born with even gross deficiencies,” Judge Barry quoted from a separate court’s opinion, “is a mystery more properly to be left to the philosophers and the theologians.” This is certainly an interesting lawsuit that has generated an intriguing opinion and sparked considerable discussion. To see some other bloggers’ and commentators’ views on the issue, see here, where the author notes the fallacy of considering one’s personal imperfection an injury for which another is to be held responsible, and here, where a reader disagreed with the lower court’s initial ruling allowing the case to go forward, arguing that creating a life is a “gamble” irrespective of how the parent goes about it.

Big Tobacco Takes Another Hit

A Florida jury recently ordered two cigarette companies to pay a total of $26.6 million to the widow of a longtime smoker who died of lung cancer after smoking for more than 50 years.

The verdict, handed down on March 24, was the latest in a string of “Engle progeny” cases to be submitted to Florida juries in recent years. Engle v. R.J. Reynolds was a landmark class-action lawsuit filed in 1994 against makers of cigarettes, in which a Florida jury awarded the plaintiffs $145 billion. This award was subsequently overturned by the Florida Supreme Court in 2006.

However, in doing so, the court reportedly did allow the approximately 700,000 Florida smokers in that class to pursue their claims individually. In addition, the state supreme court actually allowed the findings of the original jury pertaining to causation, addiction of cigarettes, negligence, and breach of implied warranty to stand, thereby reducing the burden of proof required in these subsequent actions. This likely has served as a significant advantage for plaintiffs’ counsel, who go to trial without having to jump the causation hurdle. As a result, the defendants’ strategy is also limited.

Of the 13 Engle progeny cases to reach juries in the last 13 months, plaintiffs have won 11. Counsel for the tobacco companies have alleged that each of these cases raises constitutional issues, though, because allowing one jury to rely on the findings of a prior jury that are totally unrelated to the individual smoker at each trial is in violation of both Florida law and due process.

Representatives for Philip Morris have said it will appeal the jury’s latest verdict on the grounds that the trial court improperly eliminated the majority of the plaintiff’s burden of proof. However, as of now, at least, it appears as though the latest will be one of a continuing string of verdicts to strike blows to the tobacco industry.

British Drug Manufacturer Takes Big Victory in First "At Bat" for Antipsychotic Drug

British drugmaker AstraZeneca was handed a huge victory this month by a New Jersey jury whose members concluded after six hours of deliberation that the manufacturer provided adequate warnings to the plaintiff’s doctors about the diabetes risk posed by its antipsychotic drug Seroquel. Business Week reports that this was the first of approximately 26,000 claims regarding the drug to reach a jury.

Seroquel, with a reported $4.9 billion in sales in 2009, has been widely utilized for treatment of psychotic disorders such as bipolar disorder and schizophrenia. In the present case, the plaintiff was a 61-year-old Vietnam veteran who took the drug for treatment of posttraumatic stress disorder. He is one of thousands of users of the drug who allege that AstraZeneca causes diabetes and that the company failed to adequately warn patients of that risk.

Business Week reports that the jury, which included a lawyer on its panel, determined that the manufacturer’s warnings on the label were adequate to alert users to the diabetes risks associated with the drug. As such, the jury did not issue an opinion as to whether the drug caused or contributed to the plaintiff’s development of diabetes or as to the amount of damages he would have deserved if that were proven true.

Not surprisingly, the huge volume of litigation over the drug has resulted in “millions of pages” of discovery material. The New York Times reports that among those millions of pages were at least two seemingly explosive emails. The first of those, it reports, was a 1997 message from an AstraZeneca official in which he praised the work of the company’s physician for minimizing adverse conclusions regarding the drug in a “cursed” study. Specifically, he reportedly wrote: “Lisa has done a great ‘smoke-and-mirrors’ job!” The second of those emails was written in 1999, two years after the drug was approved for use in the United States. In it, the company’s publications manager reportedly wrote: “The larger issue is how do we face the outside world when they begin to criticize us for suppressing data.”

A spokesman for AstraZeneca said that plaintiffs’ lawyers have been attempting to try the cases in public because they had been unsuccessful in the courtroom. Indeed, two prior Seroquel cases brought before a federal judge in Orlando were dismissed on summary judgment due to a lack of evidence that the drug caused diabetes. AstraZeneca has said that some 2,600 Seroquel cases have been abandoned by plaintiffs’ lawyers to date.

Medical Expert’s Testimony Deemed Incompetent, Not Sufficiently Fact-Based

We here at Abnormal Use are here to help. Over at the Drug and Device Law blog, author David Walk directs his readers’ attention to a new Eighth Circuit case about which he could not fully comment due to his firm’s involvement in that case. In light of that, and in the spirit of blogging collegiality, we thought we would do our own summary and analysis of the new opinion.

The facts are these: Plaintiff feels fine; Plaintiff takes prescription medication to reduce his cholesterol; Plaintiff develops symptoms of pain and fatigue. Such facts do not proof of causation make, the Eighth Circuit Court of Appeals affirmed. In re Baycol Products Litigation, —F.3d—, No. 08-3524, 2010 WL 711972 (8th Cir. March 3, 2010) [PDF]. In that case, the appellate court upheld summary judgment in favor of the drug-manufacturer defendant. In so doing, it held that the mere fact that a plaintiff developed physical symptoms in the months following his consumption of a defendant’s drug is insufficient to support a medical expert’s opinion that the drug was responsible for the onset of those symptoms.

The plaintiff was prescribed Baycol in February 2001 after being diagnosed with high cholesterol. On March 15 of that year, he began complaining to his doctor of general body pain and fatigue and of localized lower body pain. His complaints continued throughout July of 2001. In August, after taking the drug for approximately five months, the plaintiff discontinued his use of the drug after reading in the newspaper that Bayer had withdrawn Baycol from the market. He thereafter sent a letter to his doctor, in which he opined that Baycol was the cause of his symptoms. A subsequent blood test did reveal that the plaintiff had increased levels of creatine kinase, which is one indication of the presence of myopathy.

The plaintiff filed suit, alleging theories of strict liability, negligence, breach of express and implied warranties, and unjust enrichment. The court noted that it was the plaintiff’s burden, pursuant to his strict liability and negligence claims, to prove causation through the use of a medical expert. He essentially offered two. The first of those was in the form of “various generic causation experts” who would testify that Baycol was capable of causing myopathy. The report of the second expert garnered the most attention from the court. In it, the expert opined in what the court regarded as “conclusory remarks,” that causation was established because: (1) the pain was of new onset; (2) he had no other explanation for the injury; (3) the pain was “reasonably contemporaneous” with the plaintiff’s ingestion of Baycol; and (4) the pain didn’t get worse after he stopped taking the drug.

The court held that such conclusory remarks of “temporal association,” without sufficient evidentiary support, were wholly insufficient to prove that the defendant’s conduct contributed to the plaintiff’s injury. The court upheld entry of summary judgment in favor of Bayer on the basis of the plaintiff’s failure to present competent expert testimony on the issue of causation.

The court’s analysis with regard to these expert witness issues may provide ammunition for defendants during preliminary stages of litigation. It certainly highlights the importance of attacking the sufficiency of expert reports and of demanding competent, factually based testimony that creates triable issues of fact.

Varying Jury Verdicts in Latest Pfizer Litigation

A Philadelphia jury on February 22 ordered Pfizer’s Wyeth unit to pay $6 million in punitive damages and $3.45 million in compensatory damages to an Alabama woman who claimed she developed breast cancer as a result of taking the company’s hormone-replacement drug Prempro. Just two days later on February 24, in a case involving very similar facts, another Philadelphia jury found that Pfizer was not a cause of an Indiana woman’s breast cancer and Pfizer was not held liable for damages.

Prempro is a combination of Pfizer hormone medications Premarin and Provera and was used by more than six million women to treat symptoms of menopause before a 2002 Women’s Health Initiative study highlighted the drugs’ links to cancer. Prempro is still on the market, now with increased warnings reflecting results of the 2002 study. However, more than 8,000 lawsuits have been filed against Pfizer by former users of the drug since publication of the 2002 study.

As these two February cases demonstrate, results of the lawsuits have varied. Before this most recent victory for Pfizer on February 24, Business Week reports that Pfizer had lost seven out of the 10 Prempro cases to have gone before juries — the $9.45 million verdict in favor of the Alabama plaintiff had been Pfizer’s fifth loss in a row. However, the Philadelphia Inquirer also reports that two of the jury verdicts in favor of plaintiffs were reversed posttrial, and several other jury verdicts are being challenged by Pfizer on appeal. In addition, it reports that as of February 23, 2010, Pfizer had won five summary judgment motions in its Prempro litigation and 15 of its cases set for trial have been voluntarily dismissed by plaintiffs.

Because the outcomes of these suits and the juries’ interpretation of the facts appear to vary so greatly, it likely will only fuel plaintiffs’ and Pfizer’s fervor in arguing their cases at trial. Indeed, James A. Morris, an Austin, Texas lawyer who represented the family of the Indiana Prempro plaintiff who recently lost her battle against Pfizer, is quoted by the Philadelphia Inquirer as saying, “Nothing about today’s verdict changes the landscape of this litigation. We will continue to fight on in other cases.” Lawyers for Pfizer, on the other hand, have maintained that the company acted responsibly in conducting and supporting more than 180 studies on the benefits and risks of use of the drug. Pfizer has said it will appeal the Philadelphia jury’s recent $9.45 million verdict.

Plaintiffs’ Conspiracy Action Against Expert Witness who Allegedly Designed and Marketed Improved Product to Defendants Survives Motion to Strike

Arguably, a benefit of product liability litigation is that lawsuits demand that companies design products with greater safety measures and provide consumers with more pronounced, descriptive warnings. A guest speaker at my law school once told my class that engineers and automakers didn’t design many parts of the automobile — lawyers did. What he meant, of course, was that attorneys have filed suits against automakers when parts of a vehicle were allegedly unsafe or could have been designed with even greater safety measures in mind. This had, in turn, dictated the way that automakers designed that product from that point forward. The same guest speaker probably would not, however, have envisioned the alleged actions one California product liability attorney and his expert witness recently took in helping inspire this design process.

The California Court of Appeals recently refused to strike the plaintiffs’ complaint, where they filed suit against their attorneys and a consultant hired by their attorneys as an expert witness for negligence and conspiracy to commit fraud. Robles v. Chalilpoyil, —Cal.Rptr.3d—, (Cal. App. Jan. 27, 2010). The underlying action in Robles was a product liability claim initiated by the family of a man who burned to death when his wheelchair, which presumably was electric, ignited while he was occupying it. The family retained an attorney named Wills to represent them in their wrongful death action against the makers of the wheelchair.

According to the complaint, when the underlying case came up for trial, the family’s attorney requested a continuance on the basis that the plaintiffs’ expert witness had testified falsely in his deposition. The trial court thereby continued the trial to allow the attorneys to procure another expert witness. Before the new trial date, however, the attorney allegedly requested that each of the plaintiffs sign a waiver of any interest in a device that attorney Wills wanted to market to address the safety defects in the decedent’s wheelchair. Wills allegedly told the family members that the device would be designed and manufactured together with their former expert witness, based on research and information the expert witness had gathered in preparing for his expert testimony for trial.

After procuring each of the plaintiffs’ signatures and without retaining a new expert, the attorney “wrongfully pressured” the plaintiffs to settle the claim for $1 million. When several of the plaintiffs thereafter refused to accept the settlement proceeds, the Wills firm withdrew from the case and filed notice of lien for attorney fees.

The present case deals only with the issues of liability of the expert witness, as it was he who moved to strike allegations of the complaint as a SLAPP (Strategic Lawsuit Against Public Participation). According to the court, a SLAPP is a “meritless suit filed primarily to chill the defendant’s exercise of First Amendment rights.” The expert witness argued that his discussions with the attorney, during which the attorney solicited his agreement to allow his work product to be provided to the underlying defendants in the event of settlement, fell “comfortably” within the express terms of the anti-SLAPP statute. The California Court of Appeals disagreed, holding that such alleged discussions and agreements was not protected activity. It would not strike the plaintiffs’ complaint insofar as it alleged negligence and conspiracy to commit fraud against the former expert witness.

As noted, the court’s opinion deals with allegations of the complaint as alleged only against the expert witness. The attorney Wills, who represented the family in the underlying action, reportedly is the same person who was subsequently appointed to serve as a California Superior Court judge.

Companies Aren’t Liable for Other Companies’ Products . . . Except in California

It may seem elementary that in terms of product liability law and litigation, manufacturers cannot be deemed liable for the alleged actions or inactions of third-party companies over which the manufacturers have no ownership interest or control. Not so, according to one recent case in California, which has inspired many plaintiffs to go after big-name drug manufacturers in the pharmaceutical industry.

The California appellate court holding, which has sparked considerable controversy and disdain within the legal and pharmaceutical industries and in courts throughout the country, was issued in November of 2008. Conte v. Wyeth, Inc., 168 Cal. App. 4th 89, 85 Cal. Rptr. 3d 299 (Cal. Ct. App. 2008). Conte involved the use of metoclopramide, a drug which had been sold by Wyeth as Reglan before going off patent and becoming subject to manufacture in generic forms. A user of one of these generic medications alleged that as a result of prolonged use of the drug, she developed tardive dyskinesia, a debilitating and incurable neurological disorder. She filed suit, not against the manufacturer of the generic drug or the doctor who prescribed it, but against the deep-pocketed manufacturer of the name-brand form of the drug.

The Conte court broke new ground with its holding:

We hold that Wyeth’s common-law duty to use due care in formulating its product warnings extends to patients whose doctors foreseeably rely on its product information when prescribing metoclopramide, whether the prescription is written for and/or filled with Reglan or its generic equivalent. The risk of harm is foreseeable to Wyeth.

As such, even though it was undisputed that the plaintiff had not consumed a product manufactured by Wyeth — indeed, it was a product of its competitor — and undisputed that Wyeth did not provide labels for or sell the product at issue, Wyeth essentially was held liable for the alleged negligence of another. This California court opinion has, however, been universally rejected by courts throughout the country, all of which apparently recognize the dangers of extending liability to one company for the actions of another.

Most recently, nearly identical issues were addressed in a federal district court in Florida. Levine v. Wyeth, Inc., — F. Supp. 2d —, No. 8:09-CV-854-T-33AEP, 2010 WL 456773 (M.D. Fla. Feb. 10, 2010). The Levine plaintiff, just as the Conte plaintiff had before him, conceded that he never ingested Reglan or any other product made by the defendant, but claimed instead that he developed tardive dyskinesia as a result of use of the generic form of the drug. Relying on the Conte opinion, he alleged theories of negligent misrepresentation, fraud, negligence, strict liability, and breach of warranty.

The plaintiff claimed that doctors, pharmacists, and patients, in prescribing or being prescribed prescription drugs, rely on information provided by companies like Wyeth. The defendant, in turn, simply argued that it could not be held liable under any of the plaintiff’s causes of action as a matter of law because the plaintiff never used its product.

The Florida court sided with Wyeth, granting its motion for summary judgment as to all causes of action:

The holding in Conte is not binding on this Court, and runs counter to the overwhelming majority of case law, including that of Florida. The Court cannot impose a duty of care on Defendants here where the generic manufacturers are responsible for the contents of their label, and where the Defendants lacked direct control as to the contents of that label.

The court cited additional case law in support of its ruling, which set forth that “it is aphoristic that a plaintiff cannot prevail on [product liability claims] unless the plaintiff establishes that the product which allegedly caused the plaintiff’s injury was manufactured or sold by the defendant.” Florida and other state courts throughout the country still abide by the rational approach to product liability law — that a company is liable for its own actions or inactions, but not for those over whom it has no control. While this California court opinion remains controlling authority in that state, though, it surely will inspire additional plaintiffs to give it a shot.