Dawson Ex Rel. Thompson v. Ciba-Geigy Corp., USA

145 F. Supp. 2d 565, 2001 U.S. Dist. LEXIS 6869, 2001 WL 584187
CourtDistrict Court, D. New Jersey
DecidedMay 23, 2001
DocketCiv 00-6162
StatusPublished
Cited by13 cases

This text of 145 F. Supp. 2d 565 (Dawson Ex Rel. Thompson v. Ciba-Geigy Corp., USA) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dawson Ex Rel. Thompson v. Ciba-Geigy Corp., USA, 145 F. Supp. 2d 565, 2001 U.S. Dist. LEXIS 6869, 2001 WL 584187 (D.N.J. 2001).

Opinion

OPINION

HOCHBERG, District Judge.

This matter comes before the Court on a motion to remand by Plaintiffs. Also pending are several motions to dismiss *567 under Fed.R.Civ.P. 12(b)(6) filed by Defendants. This Court having reviewed the motions and heard the oral argument of the parties on the motion to remand and for the reasons set forth below, Plaintiffs’ motion to remand is granted.

I. FACTUAL AND PROCEDURAL HISTORY

Plaintiffs filed a class action Complaint on September 13, 2000, in the Superior Court of New Jersey, Law Division, brought on behalf of persons who have used the drug Ritalin 1 or purchased Ritalin for use by their children. Defendants are Novartis Pharmaceuticals Corp. (“Novartis”), the manufacturer of Ritalin, 2 the American Psychiatric Association (the “APA”), which Plaintiffs allege determines and publishes the diagnostic criteria for Attention Deficit Disorder (“ADD”) and Attention Deficit/Hyperactivity Disorder (“ADHD”), the disorders for which Ritalin is commonly prescribed, and Children and Adults with Attention-Deficit/Hyperactivity Disorder (“CHADD”), an organization which Plaintiff alleges enables Novartis to illegally advertise Ritalin. 3

Plaintiffs’ Complaint alleges that Defendants individually and collectively injured Plaintiffs through the promotion, sale and distribution of Ritalin. Specifically, Plaintiffs claim that Novartis and the APA “planned, conspired and colluded to create, develop and confirm the diagnoses” of ADD and ADHD “to increase the market for its product Ritalin.” (Compl., ¶ 9). Plaintiffs further allege that Novartis deliberately and negligently promoted the sale of Ritalin by distributing misleading sales and promotional literature to parents, schools and other interested persons. According to Plaintiffs, the literature distributed by Defendants fails to provide adequate information about many of the hazards of Ritalin and misrepresents the efficacy of Ritalin. (ComplY 12-15). Plaintiffs seek relief under the New Jersey Consumer Fraud Act, N.J.S.A. 56:8-1 et seq.; Plaintiffs also sue under theories of fraud, misrepresentation, negligence, and breach of express and implied warranties. Plaintiffs seek relief in the form of exemplary damages, disgorgement of profits, restitution, medical monitoring and an injunction barring the methods and practices pursuant to which Defendants allegedly misrepresented the benefits and hazards of Ritalin.

Defendants timely filed a notice of removal with this Court on December 21, 2000. Plaintiffs filed a motion to remand, which the APA opposed. Defendants CHADD and Novartis joined in APA’s opposition. Defendants claim that because Plaintiffs’ Complaint seeks injunctive relief in a form which requires further approval from the Food and Drug Administration under the Federal Food, Drug, and Cosmetic Act (the “FDCA”), 21 U.S.C. § 321 et seq., federal question jurisdiction exists and this case was properly removed to this Court. 4

*568 II. STANDARD OF REVIEW: REMOVAL

The question presented is whether Plaintiffs’ state law claims for misrepresentation and fraud by Defendants regarding the drug Ritalin should be restated as a claim “arising under” federal law, due to the regulation of Ritalin under the FDCA.

Congress has provided for removal of cases from state court to federal court only if the federal court would have had original jurisdiction over the action. 28 U.S.C. § 1441(a). Congress gave the federal courts general federal question jurisdiction in the Judiciary Act of 1875, providing “[t]he districts courts shall have original jurisdiction of all civil actions arising under the Constitution, laws or treaties of the United States.” 28 U.S.C. § 1331 (emphasis added). Federal removal statutes are to be strictly construed, and all doubts regarding removal are to be resolved in favor of remand. Boyer v. Snap-on Tools Corp., 913 F.2d 108, 111 (3d Cir.1990), cert. denied, 498 U.S. 1085, 111 S.Ct. 959, 112 L.Ed.2d 1046 (1991) (citations omitted).

The presence of federal question jurisdiction is governed by reference to the “well-pleaded complaint” doctrine. Merrell Dow Pharmaceuticals, Inc. v. Thompson, 478 U.S. 804, 808, 106 S.Ct. 3229, 92 L.Ed.2d 650 (1986) (citing Franchise Tax Board v. Construction Laborers Vacation Trust, 463 U.S. 1, 9-10, 103 S.Ct. 2841, 77 L.Ed.2d 420 (1983)). Pursuant to this doctrine, a case “arises under” federal law and is therefore removable only if a federal claim exists on the face of Plaintiffs’ complaint. Id. The fact that Plaintiffs state law claims may be preempted by federal law is insufficient to confer federal question jurisdiction. Dukes v. U.S. Healthcare, Inc., 57 F.3d 350, 353 (3d Cir.1995). Thus, removal is not proper if based on a defense or an anticipated defense which is federal in nature, even if both parties admit that the federal defense is the only real question in the case. See Caterpillar Inc. v. Williams, 482 U.S. 386, 393, 107 5.Ct. 2425, 96 L.Ed.2d 318 (1987) (“The fact that a defendant might ultimately prove that a plaintiffs claims are preempted under [a federal statute] does not establish that they are removable to federal court.”); see also Gully v. First Nat’l Bank 299 U.S. 109, 116, 57 S.Ct. 96, 81 L.Ed. 70 (1936) (“By unimpeachable authority, a suit brought upon a state statute does not arise under an Act of Congress or the Constitution of the United States because prohibited thereby”) (emphasis added).

One corollary to the well-pleaded complaint rule is the doctrine of “complete preemption.” 5 Caterpillar, 482 U.S. at 393, 107 S.Ct. 2425.

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145 F. Supp. 2d 565, 2001 U.S. Dist. LEXIS 6869, 2001 WL 584187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dawson-ex-rel-thompson-v-ciba-geigy-corp-usa-njd-2001.