DaWalt v. Purdue Pharma, L.P.

397 F.3d 392, 2005 WL 275697
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 7, 2005
Docket03-6441
StatusPublished
Cited by12 cases

This text of 397 F.3d 392 (DaWalt v. Purdue Pharma, L.P.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DaWalt v. Purdue Pharma, L.P., 397 F.3d 392, 2005 WL 275697 (6th Cir. 2005).

Opinion

OPINION

SUTTON, Circuit Judge.

At issue in this appeal is Congress’s deceptively simple prohibition on our review of district court remand orders, see 28 U.S.C. § 1447(d), and the voluminous body of case law it has spawned. Because we interpret the district court’s opinion in this case as a remand for lack of subject matter jurisdiction and not as a discretionary remand of pendent state-law claims, we conclude that § 1447(d) bars review of the remand order. That the district court based its remand on a post-removal state-court decision and on post-removal briefing does not, contrary to the defendants’ argument, alter this conclusion. Accordingly, we dismiss the appeal of the remand order for lack of appellate jurisdiction.

I.

On November 26, 2001, Charles DaWalt and Sue King (collectively “DaWalt”), both Kentucky citizens and both users of the prescription pain medication OxyContin, sued Purdue Pharma, its subsidiaries and its co-promoters (collectively “Purdue”) on behalf of a class of Kentuckians in state court, namely in the Boone County Circuit Court. DaWalt alleged wrongful manufacture, marketing, promotion, sale and distribution of OxyContin, a drug that Purdue developed, patented and, following approval by the Food and Drug Administration in May of 1996, manufactured and promoted.

Broadly speaking, DaWalt’s claims fell into two categories, both of which he purported to premise exclusively on state law. *395 DaWalt first sought relief for injuries stemming from Purdue’s alleged negligence and fraud. He then asserted a claim for “medical monitoring” under Kentucky law, asking that the court require Purdue to notify people who have received OxyContin of its potential harm; provide for regular medical examinations; create a registry of relevant information; fund further studies of the long-term effects of the drug; and publish and disseminate information to doctors, the medical' community in general and class members. Along with premising the complaint on state law, Da-Walt sought to ensure that the claims would be heard in state court by stipulating that “the claim for damages of each and every Plaintiff and Class Member is for less than $75,000,” the jurisdictional amount-in-controversy requirement for the diversity jurisdiction statute, 28 U.S.C. § 1332. JA 39.

On December 19, 2001, Purdue removed the case to federal district court, claiming that the court had diversity jurisdiction under 28 U.S.C. § 1332 because neither Purdue (nor its subsidiaries nor its co-promoters) were incorporated or had their principal place of business in Kentucky. In the alternative, Purdue invoked the complete-preemption doctrine, claiming that the district court had federal-question jurisdiction under 28 U.S.C. § 1331 because OxyContin was “subject to comprehensive federal regulation.” JA 24. In its notice of removal, Purdue further argued that DaWalt’s stipulation-which purported to limit damages from “severe disabling” injuries relating to “addiction” and other adverse consequences including “mental, and/or emotional harm, death, and loss of consortium,” JA 35, 50, 54 — was ineffective under Sixth Circuit law.

A flurry of motions followed, many of which concerned DaWalt’s attempt to rephrase his complaint to avoid the implication that each class member would recover over $75,000. DaWalt, for example, moved to delete all references to “death” and future medical care, remove one reference to “severe” medical problems and exclude punitive damages and attorneys’ fees. JA 390, 395, 396, 414, 419. Based on these changes, DaWalt filed a motion to remand on January 18, 2002. Purdue responded that, while it was improper for a party to attempt to improve its chances' of obtaining a remand through post-removal pleadings, DaWalt’s claims still exceeded the jurisdictional amount-in-controversy requirement.

On March 5, 2002, DaWalt filed a reply memorandum urging the district court not to consider the medical monitoring claims in calculating the amount in controversy because those claims may be invalid under a case then pending before the Kentucky Supreme Court and ultimately decided as Wood v. Wyeth-Ayerst Laboratories, 82 S.W.3d 849 (Ky.2002). Purdue responded by stressing that district courts measure the amount in controversy at the time of removal and that the post-removal discovery that a claim is invalid does not deprive a court of jurisdiction even if the remaining claims do not exceed $75,000. Because Wood was not settled law in Kentucky, Purdue further argued, it could not be said to a legal certainty that the medical monitoring claims were invalid at the time of removal. On August 22, 2002, the Kentucky Supreme Court decided Wood, holding that medical monitoring claims are invalid under Kentucky law absent proof of present physical injury. See 82 S.W.3d at 855. The following month, the district court struck a named defendant, Partners Against Pain, from the complaint because that “defendant” was a website established by Purdue and not a corporate entity or an entity capable of being sued.

*396 A year later, on September 30, 2003, the district court remanded the case for lack of subject matter jurisdiction. The district court first noted that DaWalt’s damage stipulation was “of no legally binding consequence and therefore ... insufficient to warrant remand.” D. Ct. Op. at 9. Yet even without the stipulation, the court reasoned, DaWalt’s claims did not suffice to meet the jurisdictional amount-in-controversy requirement because Wood had “recently [] determined that [medical monitoring] is not a legally recognized cause of action under Kentucky law.” Id. at 10. Because Wood precluded medical monitoring claims, the court continued, Purdue had failed to show under Zahn v. International Paper Co., 414 U.S. 291, 94 S.Ct. 505, 38 L.Ed.2d 511 (1973), that the “minimally injured class member” would meet the jurisdictional amount-in-controversy requirement. D. Ct. Op. at 15. The court used this reasoning both to grant Purdue’s motion to dismiss the medical monitoring claims and to declare that it had no diversity jurisdiction over the entire case.

The district court next addressed the possibility that Purdue could invoke federal-question jurisdiction under § 1331. After reviewing DaWalt’s complaint, the court concluded that the complaint “raise[d] Kentucky state law claims only, that these claims can be decided by looking solely to state law, and that they are not preempted by federal law.” Id. at 23.

Lastly, the district court refused to certify the case for interlocutory appeal.

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Dawalt v. Purdue Pharma
397 F.3d 392 (Sixth Circuit, 2005)

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Bluebook (online)
397 F.3d 392, 2005 WL 275697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dawalt-v-purdue-pharma-lp-ca6-2005.