Abed v. A. H. Robins Co.

693 F.2d 847
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 18, 1982
DocketNos. 81-4648 to 81-4656
StatusPublished
Cited by7 cases

This text of 693 F.2d 847 (Abed v. A. H. Robins Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abed v. A. H. Robins Co., 693 F.2d 847 (9th Cir. 1982).

Opinion

GOODWIN, Circuit Judge.

Plaintiffs appeal from a district court order conditionally certifying their claims as: (1) a nationwide class action on the issue of punitive damages pursuant to Federal Rule of Civil Procedure 23(b)(1)(B); and (2) a statewide (California) class action on the issue of liability pursuant to Rule 23(b)(3). In re Northern District of California “Dalkon Shield” IUD Products Liability Litigation, 521 F.Supp. 1188 (N.D.Calif.1981); 526 F.Supp. 887 (N.D.Calif.1981).

All plaintiffs claim to have been injured by the Daikon Shield intrauterine device. All of those plaintiffs who have joined in this appeal challenge class certification. Defendant A. H. Robins also opposes certification of the California 23(b)(3) class. Defendant Hugh J. Davis opposes certification of both classes.

Between June 1970 and June 1974, approximately 2.2 million Daikon Shields were. inserted in women in the United States. Many users sustained injuries. Complaints include uterine perforations, infections, ectopic and uterine pregnancies, spontaneous [849]*849abortions, fetal injuries and birth defects, sterility, and hysterectomies. Several deaths also were reported. On June 28, 1974, Robins withdrew the Daikon Shield from the market.

By May 31, 1981, approximately 3,258 actions relating to the Daikon Shield had been filed, and 1,573 claims were pending. The claims are based on various theories: negligence and negligent design, strict products liability, breach of express and implied warranty, wanton and reckless conduct, conspiracy, and fraud. Most plaintiffs seek both compensatory and punitive damages.

Some plaintiffs joined Robins, Davis, and Irwin W. Lerner as defendants, as well as their own doctors or medical practitioners who recommended and inserted the Daikon Shield, and local suppliers. Many plaintiffs sued fewer defendants.

In 1975 all actions then pending in federal district courts alleging damages from the use of the Daikon Shield were transferred by the Judicial Panel on Multidistrict Litigation to the District of Kansas for consolidated pretrial proceedings. In re A.H. Robins Co. Inc., “Dalkon Shield” Liability Litigation, 406 F.Supp. 540 (Jud.Pan.Mult.Lit.1975), 419 F.Supp. 710 (Jud.Pan.Mult.Lit.1976), 438 F.Supp. 942 (Jud.Pan.Mult.Lit.1977). After four years of consolidated discovery, the Judicial Panel began vacating its conditional transfer orders and remanding the cases to their respective transferor courts.- In re A.H. Robins Co. Inc., “Dalkon Shield” IUD Products Liability Litigation, 453 F.Supp. 108 (Jud.Pan.Mult.Lit.1978), 505 F.Supp. 221 (Jud.Pan.Mult.Lit.1981).

State courts have also received a number of Daikon Shield cases. The results have been mixed. Some plaintiffs have recovered substantial verdicts. Others have recovered nothing. Many cases have been settled.

Approximately 166 Daikon Shield cases were pending in the Northern District of California. After one jury trial that lasted nine weeks, Judge Williams consolidated all Daikon Shield cases pending in that district and ordered briefing on the feasibility of a class action. All but one of California plaintiffs’ counsel opposed class certification. Out-of-state plaintiffs were not notified of the briefing request and did not participate in the status conferences held to discuss the class action proposal. All defendants at that time opposed class certification.

On June 25,1981, Judge Williams entered an order conditionally certifying a nationwide class, under Fed.R.Civ.P. 23(b)(1)(B),1 consisting of all persons who filed actions for punitive damages against Robins.2 The court asserted jurisdiction on the basis of diversity of citizenship, 28 U.S.C. § 1332. One stated purpose of certification was to insure the rights of all plaintiffs to a proportionate share of any punitive damages recovery from the “limited fund” of Robins’ assets. Judge Williams stated:

“At the present time, some 1,573 suits involving claims for compensatory damages well over $500 million and claimed punitive damages in excess of $2.3 billion, are pending against A. H. Robins. The [850]*850potential for the constructive bankruptcy of A. H. Robins, a company whose net worth is $280,394,000.00, raises the unconscionable possibility that large numbers of plaintiffs who are not first in line at the courthouse door will be deprived of a practical means of redress.”

No testimony was taken and the way in which the “fund” was limited was not specified.

Judge Williams also conditionally certified a California statewide subclass under Rule 23(b)(3) consisting of plaintiffs who have filed actions against Robins in California.3 This California class is limited to the question of Robins’ liability arising from the manufacture and sale of the Daikon Shield. Any plaintiff may opt out of this class, whereas all plaintiffs in the nation would be bound by the determination on punitive damages.

Plaintiffs from California, Oregon, Ohio, Florida, and Kansas moved to decertify the punitive damages class. The district court denied the motion and certified the issues for an interlocutory appeal, pursuant to 28 U.S.C. § 1292(b). This court granted the interlocutory appeals and ordered them expedited.

I

The Rule 23(b)(1)(B) Nationwide Punitive Damages Class

A. Rule 23(a) Prerequisites

1. Commonality.

The district court held that the punitive damages class presented common questions about Robins’ knowledge of the safety of its product at material times while the Shield was on the market. What Davis, Lerner and Robins knew about the Daikon Shield, when they knew it, what information they withheld from the public, and what they stated in their advertising to doctors and in their product instructions during various time periods may all be common questions. These questions are not entirely common, however, to all plaintiffs.

“(b) Class Actions Maintainable. An action may be maintained as a class action if the prerequisites of subdivision (a) are satisfied, and in addition:
“(3) the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy. The matters perti-. nent to the findings include: (A) the interest of members of the class in individually controlling the prosecution or defense of separate actions; (B) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class; (C) the desirability or undesirability of concentrating the litigation of the claims in the particular forum; (D) the difficulties likely to be encountered in the management of a class action.”

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Bluebook (online)
693 F.2d 847, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abed-v-a-h-robins-co-ca9-1982.