Gregory v. Ezricare, LLC

CourtDistrict Court, E.D. Kentucky
DecidedMay 20, 2024
Docket2:23-cv-00069
StatusUnknown

This text of Gregory v. Ezricare, LLC (Gregory v. Ezricare, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gregory v. Ezricare, LLC, (E.D. Ky. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF KENTUCKY NORTHERN DIVISION AT COVINGTON

CIVIL ACTION NO. 23-69-DLB-CJS

JUDITH GREGORY, et al. PLAINTIFFS

v. MEMORANDUM OPINION AND ORDER

EZRICARE, LLC, et al. DEFENDANTS

* * * * * * * * * * * * * * * *

This matter is before the Court on Defendant EzriRx, LLC (“EzriRx”)’s Motion to Dismiss the Plaintiffs’ Amended Complaint for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2). (Doc. # 41). Plaintiffs have filed a Response in Opposition (Doc. # 43), and EzriRx has filed a Reply (Doc. # 49). The Motion is now ripe for this Court’s review. For the reasons stated herein, EzriRx’s Motion to Dismiss (Doc. # 41) is denied. I. FACTUAL AND PROCEDURAL BACKGROUND This action arises from injuries allegedly suffered by Plaintiffs after Plaintiff Judith Gregory used eye drops contaminated by the bacteria pseudomonas aeruginosa. (Doc. # 33). The case has multiple defendants and the procedural history is complicated, so the Court will begin with a discussion of the procedural history before recounting the Plaintiffs’ factual allegations. On May 20, 2023, Plaintiffs Judith Gregory and her husband, Donald Gregory, filed a Complaint alleging claims against Defendants EzriCare, LLC (“EzriCare”), EzriRx, Global Pharma Healthcare Private LTD (“Global Pharma”), and Aru Pharma Inc. (“Aru Pharma”).1 (Doc. # 1). Roughly sixty days after the filing of the action, Magistrate Judge Candace J. Smith ordered the Plaintiffs to file a Status Report to update the Court on the service of Defendants in compliance with Rule 4(m)’s requirement that defendants be served within 90 days. (Doc. # 5); Fed. R. Civ. P. 4(m). Plaintiffs complied, indicating

that the addresses were incorrect and new summons were requested to be issued. (Doc. # 10). Following service, Defendants EzriCare and EzriRx requested an extension of time to file an answer or response. (Docs. # 12 and 13). Magistrate Judge Smith then ordered and held a telephonic status conference to discuss the status of the case relevant to the other defendants that had yet to be served. (Doc. # 23). Therein, Plaintiffs indicated that Defendant Aru Pharma Inc. had filed for Chapter 11 bankruptcy in the Southern District of New York and the automatic stay prevented further proceedings against it. (Id. at 1). With respect to Defendant Global Pharma, Plaintiffs indicated that they were pursuing

service under the Hague Convention and that Rule 4(m)’s 90-day requirement for service did not apply. (Id. at 1-2). Magistrate Judge Smith concluded it was appropriate to extend the time to file a response for EzriCare and EzriRx, and that the action could proceed with the served parties. (Id. at 2). After the telephonic status conference, Defendant EzriRx filed a Motion to Dismiss for lack of personal jurisdiction, and Defendant EzriCare filed a Motion to Dismiss under

1 As of the date of this Order, Global Pharma Healthcare Private LTD and Aru Pharma Inc. have not responded to the Complaint or Amended Complaint nor entered an appearance in this action. Global Pharma is a corporation organized and existing under the laws of India, and Aru Pharma is an LLC organized under the laws of New York. Plaintiffs have not indicated the citizenship of the members of Aru Pharma. Rule 12(b)(6). (Docs. # 20 and 21). Plaintiffs sought a Motion for Leave to Amend their Complaint and Join New Parties (Doc. # 26), which the Court granted, subsequently denying the pending motions as moot (Doc. # 32). The Amended Complaint added Walmart, Inc., Walmart Stores East Limited Partnership (“the Walmart Defendants”), and Amazon.com Inc. (“Amazon”) as new

defendants. (Doc. # 33). EzriCare and EzriRx refiled their Motions to Dismiss under Rule 12(b)(6) and personal jurisdiction (Docs. # 40 and 41), which are now fully briefed (Docs. # 42, 43, 48, and 49). Since the filing of Amended Complaint, the Walmart Defendants have been dismissed from the action by Agreed Order on April 8, 2024, and their pending Motions to Dismiss and Motion for Oral Argument were denied as moot. (Doc. # 60). In the Amended Complaint, Plaintiffs allege that Plaintiff Judith Gregory was a regular user of Artificial Tears Lubricant Eye Drops (“the Product”) labeled, advertised, marketed, distributed, and sold by EzriCare, formulated, designed, and imported by Aru Pharma, Inc., and sold to Judith through Walmart and Amazon. (Doc. # 33 at ¶¶ 15-17,

24-25, 38-40). Plaintiffs allege that Defendants were made aware of the outbreak of the pseudomonas aeruginosa bacteria in their product in 2022, but continued to manufacture, prepare, assemble, test, market, advertise, package, distribute, and/or sell the product in Kentucky to residents and businesses. (Id. at ¶¶ 46-48). Plaintiffs allege that Judith obtained the product by purchasing it in Kentucky both online through Amazon.com and in-person at Walmart. (Id. at ¶ 59). Plaintiffs allege that after use of the product, Judith suffered from “left eye pain, decreased vision, and photophobia.” (Id. at ¶ 56). She was diagnosed with “necrotizing, scleritis, scleromalacia, pseudophakia, anterior blepharitis, and posterior vitreous detachment.” (Id. at ¶ 57). Following the diagnoses, she was admitted to the medical intensive care unit (“ICU”) and diagnosed with sepsis as a result from the infection. (Id. at ¶ 63). Plaintiffs allege that she continued to seek outpatient treatment for her eye and her condition worsened. Plaintiffs allege Judith required “multiple surgical interventions, hospitalizations, weekly ophthalmologist visits, and prolonged antibiotics.” (Id. at ¶ 67).

Plaintiffs bring nine claims against each Defendant jointly: (1) strict liability under Kentucky law for a defective product; (2) strict liability under Kentucky law for a failure to warn; (3) negligence in the manufacture, design, formulation, preparation, assembly, testing, marketing, advertising, packaging, labeling, distribution and sale of the product; (4) negligence in Defendants’ failure to warn; (5) breach of express warranty; (6) breach of implied warranty; (7) negligent representation that the product had a “superior quality assurance” and was “FDA registered, insured, and compliant;” (8) a violation of the Kentucky Consumer Protection Act; and (9) a loss of consortium for Plaintiff Donald Gregory as a result of the “loss of Judith services, assistance, aid, and companionship as

is between husband and wife.” (Id. at 21-28). Defendant EzriRx now brings a Motion to Dismiss for lack of personal jurisdiction under Rule 12(b)(2) of the Federal Rules of Civil Procedure. (Doc. # 41). Defendant EzriCare does not challenge personal jurisdiction, instead raising a Motion to Dismiss for failure to state a claim for which relief can be granted under Rule 12(b)(6). (Doc. # 40). The Court will address EzriRx’s Rule12(b)(2) Motion first, with a subsequent order on EzriCare’s Rule 12(b)(6) Motion to follow. II. ANALYSIS A. Standard of Review When a defendant brings a Rule 12(b)(2) motion to dismiss for lack of personal jurisdiction, the burden is on the plaintiff to establish that the court has personal jurisdiction over each defendant. Theunissen v. Matthews, 935 F.2d 1454, 1458 (6th Cir.

1991). If the court has not conducted an evidentiary hearing, then the plaintiff’s burden is “relatively slight,” and the plaintiff must only make a prima facie showing of personal jurisdiction. Estate of Thomson v. Toyota Motor Corp.

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Gregory v. Ezricare, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gregory-v-ezricare-llc-kyed-2024.