Del Laboratories, Inc. v. United States

86 F.R.D. 676, 1980 U.S. Dist. LEXIS 13788
CourtDistrict Court, District of Columbia
DecidedMarch 31, 1980
DocketCiv. A. No. 78-2267
StatusPublished
Cited by3 cases

This text of 86 F.R.D. 676 (Del Laboratories, Inc. v. United States) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Del Laboratories, Inc. v. United States, 86 F.R.D. 676, 1980 U.S. Dist. LEXIS 13788 (D.D.C. 1980).

Opinion

OPINION AND ORDER

JOHN GARRETT PENN, District Judge.

The plaintiff filed this action seeking a declaratory judgment that an administrative decision by the Federal Food and Drug Administration (FDA) was arbitrary and capricious and not in accordance with law. The decision involved the refusal by the FDA to grant trade secret status to a certain cosmetic ingredient, hereinafter referred to as Ingredient 03 1, following plaintiff’s application for such status pursuant to the presubmission review procedures set forth in FDA’s regulations. See 21 CFR § 20.44. Plaintiff alleges that the administrative record does not factually or legally support the determination made by FDA in this case, that the determination was arbitrary and capricious, and that plaintiff was denied due process of law under the Fifth Amendment to the Constitution. The case is now before the Court on defendant’s motion for summary judgment.

I

The underlying facts in this case are as follows: The Commissioner of Food and Drugs, under authority delegated to him by the Secretary of Health, Education and Welfare, promulgated regulations pursuant to the Fair Packaging and Labeling Act, 15 U.S.C. § 1451 et seq., requiring that the label on any package of cosmetic products state the ingredients in order of decreasing prominence. 21 CFR § 701.3(a). A particular cosmetic ingredient may be omitted from the label if the FDA determines that the ingredient is entitled to trade secret status pursuant to 21 CFR §§ 20.44 and 20.612. FDA’s determination of trade se[678]*678cret status is based on an evaluation of the manufacturer’s voluntary submission of a Cosmetic Product Ingredient Statement (Form FD-1513), 21 CFR § 720.1, the request for confidentiality, material submitted in support thereof, and publicly available scientific literature. When FDA concludes that a particular ingredient is entitled to trade secret status, the phrase, “and other ingredients”, may be used in lieu of identifying the ingredient on the label. 21 CFR § 701.3(a).

Plaintiff is the manufacturer and distributor of a cosmetic product bearing the trademark, Sally Hansen Dri Kwik. The cosmetic product manufactured by plaintiff is subject to the Federal Food Drug and Cosmetic Act, 21 U.S.C. § 301 et seq., and regulations promulgated thereunder, in that they are “cosmetics” as defined by that Act, 21 U.S.C. § 321(i), and they are sold and distributed in interstate commerce.

Plaintiff filed a petition for Presubmission Determination of Confidentiality with FDA on March 15, 1976. However, the petition was returned to plaintiff on August 3,1976, when plaintiff failed to include forms FD 2512 and 2512a.3 Plaintiff refiled on September 22, 1976, and thereafter furnished yet additional information on March 31, April 27, and May 4, 1977.4

FDA issued a “Tentative Determination” on July 11, 19785 preliminarily denying the request that Ingredient 03 be designated as a trade secret and stated as grounds for denial that “the request of confidentiality contains only claims of superior performance characteristics allegedly attributable to Ingredient 03 but offers no scientific, technical or other information whatsoever in support of such claims”. The letter set forth examples of the claims made by plaintiff as follows:

No factual data are provided demonstrating the superiority of ingredient. 03 over diethylphthalate to accomplish the unusual “performance characteristics” of the formulations in which it is used, nor that such formulations are demonstrably and significantly superior to “conventional” products. In addition, no information is given showing that ingredient 03 could not be readily identified by analytical means nor what measures are taken by the firm to safeguard the secrecy of this ingredient. All these are important factors in determining whether the identity of the ingredient meets the criteria of a trade secret and may therefore be exempted from public disclosure.

The letter also made reference to and attached thereto, the preamble to the final rules on public information published in the Federal Register of December 24, 1974 (39 Fed.Reg. 446.12).

Plaintiff responded to the Tentative Determination in its letter of April 16, 19786 in which it attached a list of competing products and listed their ingredients noting that the Ingredient 03 was not included in those products. With respect to the claimed superior performance, plaintiff stated “[t]he superior performance of Sally Hansen’s Dri Kwik is well known both to the public and in the industry”. Plaintiff also advised FDA that its laboratory had been unable to find a method by which Ingredient 03 can be identified in the finished product thereby demonstrating that competitors cannot analyze Dri Kwik to discover Ingredient 03, and briefly outlined the precautionary measures undertaken by plaintiff to maintain confidentiality.

A final determination was issued by FDA on November 16, 1978, in which the agency denied plaintiff’s request that Ingredient 03 be classified a trade secret7. FDA referred [679]*679to plaintiff’s submission of August 16,1978, and noted that:

It does not offer any support whatsoever to your claims of superior performance characteristics of Sally Hansen Dry Kwik over the competitive products on which you based your request for confidentiality, nor does it demonstrate the alleged specific superiority of ingredient 03 over diethylphthalate. Without such evidence showing that ingredient 03 is important to the product and that competitors would benefit from discovery of its identity, the question of how readily it may be identified by analytical means is moot.

Plaintiff alleges that the action of the FDA in issuing its final determination denying plaintiff’s request for a trade secret determination is arbitrary, capricious, and that it denied plaintiff due process of law under the Fifth Amendment.

II

Plaintiff argues that the Court should deny the motion for summary judgment because there are outstanding issues of fact, see Fed.R.Civ.P. 56(c), and in support of its argument has filed a Statement of Genuine Issues setting forth ten factual issues. Those issues range from “[h]ow many reversals of the so-called ‘tentative determination’ have been made” by FDA, to whether Ingredient 03 can be identified by laboratory analysis and analytical determination.

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Bluebook (online)
86 F.R.D. 676, 1980 U.S. Dist. LEXIS 13788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/del-laboratories-inc-v-united-states-dcd-1980.