City of Holly Springs v. Johnson & Johnson

District Court, N.D. Mississippi·Decided September 16, 2022·No. 3:21-cv-00246·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF MISSISSIPPI OXFORD DIVISION

CITY OF HOLLY SPRINGS PLAINTIFF

V. NO. 3:21-CV-246-DMB-RP

JOHNSON & JOHNSON, et al. DEFENDANTS

ORDER

This is the second time the City of Holly Springs’ claims against various opioid manufacturers, opioid distributors, pharmacies, and medical providers have been removed to federal court. The first time, in a separate case, the presiding district judge rejected the removing defendants’ claims of fraudulent misjoinder and granted the City’s motion to remand based on a lack of diversity of citizenship. This time, certain of those defendants removed the case asserting that one defendant’s citizenship should be disregarded because it is a non-juridical entity or, alternatively, that such defendant was fraudulently joined. The City again has moved to remand. Because the removing defendants in this case still have not shown diversity jurisdiction exists and because the removal was procedurally improper, this case will be remanded to state court. I Relevant Procedural History On May 12, 2020, the City of Holly Springs filed a complaint in the Circuit Court of Marshall County, Mississippi, against several opioid manufacturers, opioid distributors, pharmacies, and medical providers.1 Doc. #2. Asserting that five non-diverse pharmacy and

1 The complaint named as defendants Johnson & Johnson; Janssen Pharmaceuticals, Inc.; Ortho-McNeil-Janssen Pharmaceuticals, Inc. n/k/a Janssen Pharmaceuticals, Inc.; Janssen Pharmaceutica, Inc. n/ka Janssen Pharmaceuticals, Inc.; Mallinckrodt PLC; Endo Health Solutions Inc.; Endo Pharmaceuticals, Inc.; Abbvie Inc.; Knoll Pharmaceutical Company, a wholly-owned subsidiary of Abbvie Inc.; Allergan PLC f/k/a Actavis PLC; Allergan Finance LLC f/k/a Actavis, Inc. f/k/a Watson Pharmaceuticals, Inc.; Watson Laboratories, Inc.; Actavis LLC; Actavis Pharma, Inc. f/k/a Watson Pharma, Inc.; McKesson Corporation; Cardinal Health, Inc.; AmerisourceBergen Corporation; Cephalon, medical provider defendants2 should be severed under Federal Rule of Civil Procedure 21 and that those same defendants were fraudulently misjoined, Endo Pharmaceuticals Inc. removed the case to the United States District Court for the Northern District of Mississippi on July 10, 2020. See City of Holly Springs v. Johnson & Johnson, No. 3:20-cv-205-MPM-RP, at Doc. #2 (N.D. Miss. July 20, 2020). A week later, the City moved to remand. Id. at Doc. #28.

United States District Judge Michael P. Mills addressed the City’s motion to remand in an August 6, 2020, order. City of Holly Springs v. Johnson & Johnson, 477 F. Supp. 3d 547, 555 (N.D. Miss. 2020). Judge Mills found the “defendants’ reliance upon Rule 21 as a basis for removing a case to be improper” because “in order to remove a case involving non-diverse parties on the basis of diversity jurisdiction, a defendant needs an actual removal doctrine, such as fraudulent joinder or fraudulent misjoinder.” Id. at 552. Regarding the defendants’ fraudulent misjoinder argument, Judge Mills explained that “district courts which recognize the fraudulent misjoinder doctrine have tended to emphasize … that it should only apply in cases of truly egregious misjoinder.”3 Id. at 553.

In finding [the] defendants’ misjoinder arguments to not be well taken, [Judge Mills] emphasize[d] that the main focus of the very lengthy complaint … [was] not on the manufacture or design aspects of the supply of opioids to consumers. … Rather, the main thrust of the complaint … [was] that there was a symbiotic relationship between drug manufacturers and local doctors and pharmacies, pursuant to which they sought to work together for their mutual financial benefit by promoting the excessive use of opioids. By focusing on the promotion of the use of opioids, … there is greater similarity among the alleged actions of the various defendants than in the typical case in which a retailer is joined in a products liability

Inc.; Walgreens Boot Alliance, Inc.; Wal-Mart Stores, Inc.; CVS Health; Cassandra Hawkins, M.D.; Byhalia Family Health Center; Liddy Pharmacy; Tyson Pharmacy; and Robinson Pharmacy. 2 The non-diverse defendants were Liddy Pharmacy, Tyson Pharmacy, Robinson Pharmacy, Cassandra Hawkins, M.D., and Byhalia Family Health Center. 3 As Judge Mills noted, the undersigned district judge has “declined to recognize fraudulent misjoinder as a basis for jurisdiction based on [my] conclusions that ‘the removal statute must be strictly construed’ and that there is no ‘clear guidance from the Fifth Circuit or the United States Supreme Court on the application of the fraudulent misjoinder doctrine.’” Holly Springs, 477 F. Supp. 3d at 553 (quoting Wilson v. State Farm Mut. Auto. Ins. Co., No. 4:17-cv- 124, 2018 WL 109836, at *2 (N.D. Miss. Feb. 28, 2018)). action. True enough, the diverse manufacturers played a different role in the supply chain than the non-diverse doctors and pharmacies, but the complaint allege[d] that they were motivated by a similar state of mind, namely a willingness to overlook the harm caused by the oversupplying of opioids to consumers, in the interest of profits. That being the case, … the fact that the various defendants played different roles in supplying opioids to consumers [did not] preclud[e] their lawful joinder under Rule 20, and … that joinder [was not] sufficiently “egregious” to give rise to federal jurisdiction under Tapscott [v. Miss. Dealer Serv. Corp., 77 F.3d 1353 (11th Cir. 1996)].

Id. at 554. Because he found federal jurisdiction lacking, Judge Mills remanded the case to the Circuit Court of Marshall County. Id. at 555. Following remand, the claims against two of the five non-diverse defendants—Tyson Pharmacy and Cassandra Hawkins, M.D. —were dismissed without prejudice in November 2020. Doc. #17-9; Doc. #17-26. Almost a year later, on October 25, 2021, the claims against two more non-diverse defendants—Liddy’s Health Mart and Byhalia Health Center—were also dismissed without prejudice. Doc. #21-13. On December 1, 2021, Mississippi CVS Pharmacy, L.L.C., Walgreen Co., and Walmart Inc. (“Pharmacy Defendants”) removed the case to federal court, asserting that “there remains one Non-Diverse Defendant in this case, Robinson”4 but “Robinson is not an entity capable of suing or being sued[, n]or is it a citizen of Mississippi” and its “purported citizenship has no bearing as to whether the named parties are diverse.” Doc. #1 at 9–11. The Pharmacy Defendants also assert that “the Court should disregard Robinson’s purported citizenship because it was fraudulently joined as a party.” Id. at 12. On December 15, 2021, the City filed a motion to remand.5 Doc. #26. The motion is fully

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