Davis County v. Purdue Pharma

2020 UT 17, 463 P.3d 619
CourtUtah Supreme Court
DecidedApril 23, 2020
DocketCase No. 20190487
StatusPublished
Cited by3 cases

This text of 2020 UT 17 (Davis County v. Purdue Pharma) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis County v. Purdue Pharma, 2020 UT 17, 463 P.3d 619 (Utah 2020).

Opinion

This opinion is subject to revision before final publication in the Pacific Reporter

2020 UT 17

IN THE

SUPREME COURT OF THE STATE OF UTAH

DAVIS COUNTY, Appellant, v. PURDUE PHARMA, L.P., et al.,1 Appellees.

No. 20190487 Heard December 11, 2019 Filed April 23, 2020

On Interlocutory Appeal

Second District, Farmington The Honorable David M. Connors No. 180700870

Attorneys: Douglas B. Thayer, Wm. Kelly Nash, Andy V. Wright, Jordan K. Cameron, Mark R. Nelson, Jessica Griffin Anderson, _____________________________________________________________ 1 Johnson & Johnson; Janssen Pharmaceuticals, Inc.; Ortho-McNeil-Janssen Pharmaceuticals, Inc. n/k/a Janssen Pharmaceuticals, Inc.; Janssen Pharmaceutica, Inc. n/k/a Janssen Pharmaceuticals, Inc.; Purdue Pharma Inc.; The Purdue Frederick Company Inc.; McKesson Corp.; McKesson Medical-Surgical, Inc.; Amerisourcebergen Corp.; Amerisourcebergen Drug Corp.; Mallinckrodt LLC; Actavis LLC; Actavis Pharma Inc.; Watson Laboratories Inc.; Allergan Finance LLC; Allergan Sales LLC; Allergan USA Inc.; Depomed, Inc. n/k/a Assertio Therapeutics Inc.; Cardinal Health Inc.; Cardinal Health 105 Inc.; Cardinal Health 107 LLC; Cardinal Health 108 LLC; Cardinal Health 110 LLC; Cardinal Health 112 LLC; Cardinal Health 200 LLC; Cardinal Health 414 LLC; Abbvie Inc.; Knoll Pharmaceutical Company; Perry Fine; Scott Fisherman; Lipocine Inc.; Lipocine Operating Inc.; Spriaso LLC. DAVIS COUNTY V. PURDUE PHARMA, L.P. Opinion of the Court

David B. Nielson, Lehi; Thomas J. Burns, R. Blake Hamilton, Salt Lake City; Martin J. Phipps, Barry Deacon, Jason M. Milne, Daniel R. Griffin, Meagan Talafuse, San Antonio, Texas; Troy S. Rawlings, Neal C. Geddes, Michael D. Kendall, Farmington, for appellant Andrew G. Deiss, John Robinson Jr., Corey D. Riley, Elisabeth M. McOmber, Erik A. Olson, Trevor C. Lang, Kamie F. Brown, Kristine M. Larsen, Geoffrey C. Haslam, Tyler V. Snow, Brent O. Hatch, Lara A. Swensen, Jess M. Krannich, Trevor J. Lee, Brent R. Baker, Jonathan D. Bletzacker, D. Matthew Moscon, Michael Menssen, Joseph R. Brubaker, Rod N. Andreason, Mark A. Nickel, Salt Lake City; Mark Bettilyon, Sandy; Charles C. Lifland, Amy Laurendeau, Los Angeles, California, for appellees

ASSOCIATE CHIEF JUSTICE LEE authored the opinion of the Court, in which CHIEF JUSTICE DURRANT, JUSTICE PEARCE, JUSTICE PETERSEN, and JUDGE HARRIS joined.

Having recused himself, JUSTICE HIMONAS does not participate herein; COURT OF APPEALS JUDGE RYAN M. HARRIS sat.

ASSOCIATE CHIEF JUSTICE LEE, opinion of the Court: ¶1 This is one of thousands of cases filed by state and local governments against opioid manufacturers in courts across the country. The plaintiffs in these cases assert, among other things, that manufacturers and distributors of opioid drugs misled doctors and consumers about the safety of these drugs, which led to medically unnecessary prescriptions and ultimately to the abuse of opioids— the opioid epidemic. They seek to hold defendants liable for the public costs arising from the use and misuse of opioid drugs. ¶2 Fifteen of these opioid cases have been filed in the Utah courts—with one or more cases pending in each of our eight judicial districts. Various counties have filed suit in their home judicial districts. The first such case was filed by Summit County in the third district. Salt Lake and Tooele Counties also filed in that district. Davis County then filed suit in the second district, and various other counties filed in the courts in their respective home districts. ¶3 In November 2018, various manufacturer defendants filed a motion to consolidate all of the pending cases in the state in the third district. Citing Utah Rule of Civil Procedure 42, defendants asserted

2 Cite as: 2020 UT 17 Opinion of the Court

that the interests of judicial economy and justice would be served by consolidating all of the pending cases, at least for pretrial purposes, in the court in which the first related action was filed. The third district court granted the motion in part, consolidating the three third district cases for pretrial purposes but declining to order transfers from outside the third district. In so ruling the court concluded that the “benefits of pretrial coordination far outweigh the potential prejudice to any litigant,” but declined to endorse what it viewed as an “untested interpretation of Rule 42 to consolidate matters pending in other judicial districts.” Yet the court also invited judges in other districts to consider the possibility of transferring their opioid cases to the third district “as a means of facilitating pretrial coordination and achieving the benefits it offers.” ¶4 One of the manufacturer defendants (Janssen Pharmaceuticals, Inc.) took the third district court up on that suggestion. It filed a motion in the second district, asking the court to transfer the Davis County action to the third district for discovery and pretrial proceedings. Davis County opposed the motion, asserting (among other things) that the district court lacked the power to transfer the case under civil rule 42 and that transfer was foreclosed under Utah Code section 78B-3-309. Because the statute speaks only of transfer for trial purposes, Davis County claimed that the statute preempted any inherent power vested in the district court. And even assuming that the statute could be viewed to endorse transfer only for discovery and pretrial purposes, Davis County contended that the conditions of the statute were not satisfied and that transfer was thus improper. Lastly, Davis County asserted that the interests of justice and judicial economy disfavored transfer for pretrial proceedings even assuming that the district court had some kind of authority (inherent or otherwise) to grant such a motion. ¶5 The second district court granted the transfer motion. It found that it lacked the power to consolidate these proceedings under civil rule 42 and held that Utah Code section 78B-3-309 did not apply, but concluded that it had the authority to transfer for pretrial proceedings under its “inherent power to manage its cases, and docket.” In explaining the basis for exercising that power, the court concluded that “there are significant benefits that will result from the partial transfer of venue,” including the following: (1) Conservation of judicial resources by avoiding the need for eleven judges to manage twelve substantively similar lawsuits, in parallel, at the same time; (2) Avoidance of inconsistent legal rulings regarding the 3 DAVIS COUNTY V. PURDUE PHARMA, L.P. Opinion of the Court

pleadings, discovery disputes—of which there are likely to be many—and potentially dispositive motions; and (3) Avoidance of unnecessarily duplicative discovery, and judicial coordination and management of the extraordinary discovery, well beyond the standard limits set by Rule 26, that is almost certainly required in a litigation of this size. In light of these considerations the court found that “a limited transfer of venue for pretrial proceedings [would] promote the ends of justice and the efficient administration of pending cases and dockets.” ¶6 Davis County filed a petition for leave to challenge the transfer on interlocutory appeal, which we granted. In challenging the transfer, Davis County first questions the authority of the district court to enter an order transferring an action for pretrial purposes only. It then contends that the district court exceeded the bounds of its discretion in ordering transfer here even assuming that the court has the power to grant such motions. ¶7 We affirm. First, we consider the question of the district court’s authority to grant a motion to transfer for pretrial proceedings. This presents a series of questions of law, which we review de novo. See WDIS, LLC v.

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Bluebook (online)
2020 UT 17, 463 P.3d 619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-county-v-purdue-pharma-utah-2020.