Caldwell ex rel. Louisiana v. Bristol Myers Squibb Sanofi Pharmaceuticals Holding Partnership

116 F. Supp. 3d 727, 2015 U.S. Dist. LEXIS 93272, 2015 WL 4395369
CourtDistrict Court, W.D. Louisiana
DecidedJuly 16, 2015
DocketCivil Action No. 6:15-cv-1507
StatusPublished
Cited by1 cases

This text of 116 F. Supp. 3d 727 (Caldwell ex rel. Louisiana v. Bristol Myers Squibb Sanofi Pharmaceuticals Holding Partnership) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caldwell ex rel. Louisiana v. Bristol Myers Squibb Sanofi Pharmaceuticals Holding Partnership, 116 F. Supp. 3d 727, 2015 U.S. Dist. LEXIS 93272, 2015 WL 4395369 (W.D. La. 2015).

Opinion

[729]*729 JUDGMENT

PATRICIA MINALDI, District Judge.

For the reasons stated in the Report and Recommendation [Doc. 28] of the Magistrate Judge previously filed herein; after, an independent review of the record; •consideration of the Objection [Doc, 30] and Response to Objection [Doc. 31], filed by the plaintiff and defendant, respectively; a de novo determination of the issues; and having determined that the findings are correct under applicable law,

IT IS ORDERED that the plaintiffs Motion to Remand [Doc. 16] be and hereby is GRANTED.

IT IS FURTHER ORDERED that the plaintiffs Motion for Expedited Consideration [Doc. 31] be and hereby is GRANTED.

IT IS FURTHER ORDERED that the defendants’ Motion for Hearing [Doc. 33] be .and hereby is DENIED.

REPORT AND RECOMMENDATION

PATRICK J, HANNA, United States Magistrate Judge.

Before the undersigned, on referral from the district judge, is the motion to remand (Rec. Doc. 16), which was filed by the plaintiff, James D. “Buddy” Caldwell, the Attorney General of the State of Lour-siana, on behalf of the State of Louisiana. The motion is opposed by the, defendants.1 Oral argument was held on May 26, 2015. Fbr the reasons set forth below, it is recommended that the motion to remand be GRANTED.

Factual and Procedural Background

This lawsuit was originally filed in’ the 27th Judicial District Court, St. Landry Parish, Louisiana. In the suit, the Louisiana state attorney general sued.certain pharmaceutical companies who allegedly manufacture the prescription drug Plavix as well as three sales representatives who allegedly market Plavix.2 The plaintiff alleged that the defendants used false and misleading advertising to promote the sale of Plavix, resultingin the state’s purchase of Plavix for Medicaid recipients to whom the drug should not have been prescribed. More particularly, the plaintiff alleged" that the defendants made material, false, and deceptive representations that proximatély caused injury to the state of Louisiana. The plaintiff originally sought to recover under two" Louisiana statutes, the Medical Assistance Programs Integrity Law (“MA-PIL”), La. R.S. 46:437.1 • et seq. and the Unfair Trade- Practices and Consumer Protection Law (“LUTPCPL”), La. R.S. 51:1401 et seq: The stiit did "not seek recovery under any federal statutes, and the suit was not styled as a class action.

The defendants removed the, suit to this forum, and it was. assigned Civil Action No. 6:12-rCv-00443. The defendants alleged three independent bases for this Court’s jurisdiction:. diversity jurisdiction, federal-question jurisdiction, and jurisdiction under the Class Action Fairness Act (“CAFA.”) (Rec. Doc. 1 in Civil Action No. 6:12-ev-00443). In respbnsé to the removal notice, the plaintiff filed a motion to remand, which was granted in the fall of 2012. (Rec. Docs. 40, 41, 42 in Civil Action No. 6:12-cv-00443). The action was then remanded to the 27th Judicial District Court, St. Landry Parish, Louisiana. ..

[730]*730On April 15, 2015,' the ’plaintiff filed an amending and supplemental petition in the state-court action: (Rec. Doc: 1-3). The defendants - again removed (Rec. Doc. 1), claiming that new allegations - set forth in the amending petition provide a basis for this Court to exercise federal-question jurisdiction over this, action under 28 U.S.C. § 1331. More particularly, the defendants contend that the plaintiffs new .redhibition claim, amended MAPIL claim, and. new fraud claim create federal-question jurisdiction. In response, the .plaintiff filed the instant motion to remand.

Analysis

In its -motion to remand, the plaintiff argues that this Court lacks subject-matter jurisdiction over this action. First, as a procedural matter, the plaintiff argues that the defendant should not be permitted to remove this previously remanded, case because there is no new and different basis for removal. Second, as a substantive matter, the plaintiff argues that it has asserted only state-law causes of action, that “any buried potential relation to federal Medicaid statute(s) or regulation(s) in the State’s case are insufficient to trigger federal question jurisdiction” (Rec. Doc. 16-4 at 9), and that “[e]ven if there is an underlying federal question in the subject matter raised by the State’s-causes of action, the question is insufficient to convert its state law claims into federal ones” (Rec. Doc. 16-4, at-10).-

The defendants contend, to the contrary, that new and revised claims set forth in the plaintiffs amending petition create federal-question jurisdiction.

Federal courts exercise limited jurisdiction.3 For that reason, a suit is presumed to lie outside a federal court’s jurisdiction until the party invoking federal-court jurisdiction establishes otherwise.4 Any doubts regarding whether removal jurisdiction is proper should be resolved against federal-court jurisdiction.5 The party invoking the court’s subject-matter jurisdiction has the burden of establishing the court’s jurisdiction.6 Therefore, when a lawsuit has been removed from state court, as this suit has, the removing party must bear that burden.7 Accordingly, the defendants, as the removing parties, have the burden of establishing-that this Court has subject-matter jurisdiction over this action.

The amending petition states that it is “based entirely on State Law”8 and that the “State of Louisiana is not seeking any remedy under any Federal Statute or Regulation,” 9 The defendants argue, however, that the plaintiffs revised MAPIL claim, its new redhibition claim, and its new fraud claim turn on substantial and dispositive questions of federal law sufficient to support federal-question jurisdiction.

Federal district courts have “original jurisdiction of all civil actions arising [731]*731under the Constitution, laws, or treaties of the United States.”10 A claim arises under federal law when federal law creates the cause of action or when a state-law claim raises a federal issue.11 Because state law — not federal law — creates the plaintiffs causes of action, the defendants argue that this case falls into the second category of federal-question cases. The United States Supreme Court formulated the relevant inquiry for such cases as follows: “Does a state-law claim necessarily raise a stated federal issue, actually disputed and substantial, which a federal forum may entertain without disturbing any congressionally approved balance of federal and state judicial responsibilities?”12 The Fifth Circuit reiterated this test, breaking it into four separate inquiries and finding that federal-question jurisdiction exists when: (1) resolving a federal issue is necessary to resolution of the state-law claim; (2) the federal issue is actually disputed; (3) the federal issue is substantial; and (4) federal jurisdiction will not disturb the balance of federal and state judicial responsibilities.13

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116 F. Supp. 3d 727, 2015 U.S. Dist. LEXIS 93272, 2015 WL 4395369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/caldwell-ex-rel-louisiana-v-bristol-myers-squibb-sanofi-pharmaceuticals-lawd-2015.