Harding v. Cordis Corp.

2021 IL App (1st) 210032, 196 N.E.3d 514, 458 Ill. Dec. 210
Appellate Court of Illinois·Decided December 3, 2021·No. 1-21-0032·Published·Cited by 3 cases

Opinion

2021 IL App (1st) 210032

SIXTH DIVISION

December 3, 2021

IN THE

APPELLATE COURT OF ILLINOIS FIRST DISTRICT

No. 1-21-0032

PATTIE A. HARDING, )

) Appeal from the Plaintiff-Appellee, ) Circuit Court of ) Cook County.

v. )

)

CORDIS CORPORATION, a Florida Corporation; ) JOHNSON & JOHNSON, a New Jersey Corporation; ) No. 17 L 8306 CONFLUENT MEDICAL TECHNOLOGIES, INC., a ) Delaware Corporation; and GAIL SUSAN SMITH, M.D., )

)

Defendants, ) The Honorable ) Gerald Cleary, (Confluent Medical Technologies, Inc., Defendant- ) Judge Presiding. Appellant). )

JUSTICE MIKVA delivered the judgment of the court, with opinion. Presiding Justice Pierce and Justice Oden Johnson concurred in the judgment and opinion.

OPINION

¶1 The question before us is whether a defendant who manufactures a custom component of a medical device that is alleged to have caused injury to an Illinois resident has sufficient minimum contacts with this state to subject itself to the jurisdiction of our courts. This defendant knew the medical device was sold in the United States but not which specific states it was sold in. The defendant also sold other similar products directly to Illinois. We hold that our courts do have jurisdiction over this defendant for the reasons outlined in this opinion.

¶2 The plaintiff, Pattie A. Harding, brought a suit against several defendants, including Confluent Medical Technologies, Inc. (Confluent), after suffering injuries due to what she alleged was a defective medical device manufactured, sold, and implanted by the defendants. Confluent moved, unsuccessfully, to dismiss the claims against it for a lack of personal jurisdiction. Confluent now appeals, arguing that it lacks the requisite minimum contacts with Illinois for the State to exercise personal jurisdiction over it. For the following reasons, we affirm.

¶3 I. BACKGROUND

¶4 Ms. Harding alleged in her complaint that in June 2010 she suffered personal injuries as a direct and proximate result of a defective inferior vena cava (IVC) filter. According to the complaint, an IVC filter is a medical device “designed to filter or ‘catch’ blood clots that travel from the extremities to the heart and lungs.” Computerized tomography scans performed in December 2015 and February 2016 revealed that “tines” of the IVC filter had perforated the wall of Ms. Harding’s inferior vena cava, that the filter had migrated and fractured, and that a piece of the filter was lodged in Ms. Harding’s heart.

¶5 Ms. Harding alleged that Confluent was incorporated in Delaware and headquartered in California. She further alleged that Confluent was an affiliate of Cordis Corporation (Cordis) and was involved in the manufacture and design of the IVC filters. Ms. Harding alleged that “Confluent ha[d] conducted business and derived substantial revenue from within the State of Illinois, from including, but not limited to, its business activities related to [the] IVC filters.”

¶6 Ms. Harding also alleged that Confluent and Cordis:

“were engaged in the business of researching, developing, designing, setting specifications for, licensing, manufacturing, preparing, compounding, assembling, processing, selling, distributing, marketing, and/or introducing into interstate commerce and into the State of

Illinois, either directly or indirectly through third parties or related entities, the Cordis IVC filters—specifically, the OptEase filter—to be implanted in patients throughout the United States, including Illinois, and including the Cordis IVC filters implanted in [Ms. Harding], and derived substantial income from doing business in Illinois.”

¶7 Ms. Harding also states in her brief that “[t]he OptEase IVC filter medical device was comprised of the nitinol filter manufactured by Confluent, the delivery system, instructions for use, and other labeling materials,” suggesting that the nitinol filter custom manufactured by Confluent for Cordis was the significant component of Cordis’s OptEase filter. Confluent did not refute this characterization of its product.

¶8 Ms. Harding’s claims against Confluent and Cordis included strict products liability based on a product defect, an inadequate warning, and a manufacturing defect; negligence; negligent misrepresentation; fraudulent misrepresentation; fraudulent concealment; and breaches of both express warranty and implied warranty of merchantability. She asked for general noneconomic damages for past and future pain and suffering, emotional distress, and loss of enjoyment of life, plus special economic damages for past and future medical expenses, disgorgement of profits, restitution, statutory damages, costs, and pre- and post-judgment interest.

¶9 Confluent moved to dismiss Ms. Harding’s complaint under sections 2-301 and 2-619 of the Code of Civil Procedure (Code) (735 ILCS 5/2-301, 2-619 (West 2018)). It argued that Ms. Harding had failed to allege any facts that would allow the circuit court to exercise personal jurisdiction over it. Confluent stated that it “did not design, manufacture, market, sell or distribute any portion of the OptEase IVC filter at issue in this case in Illinois” and that Ms. Harding therefore could not show that Confluent “purposefully directed its activities at Illinois” or that the claims against Confluent “arose out of or relate[d] to Confluent’s contacts with Illinois.”

¶ 10 Confluent explained that, although it did manufacture nitinol component parts used in Cordis’s OptEase filter, “using the manufacturing processes from Cordis and based on the design and specifications from Cordis,” it did so in California until 2010 and thereafter in Costa Rica. According to Confluent, it “sells the component parts directly to Cordis and ships them to Juarez, Mexico.” Confluent maintained that it did not sell, distribute, or manufacture nitinol components for IVC filters in Illinois; it did not know where Cordis marketed or sold its IVC filters; it maintained no offices, agencies, places of business, post office boxes, or telephone listings in Illinois; it did not have any interest in any property in Illinois; it did not pay taxes or have employees or agents who resided in Illinois; and it did not engage in the direct solicitation of business or directly advertise any goods or services in Illinois. Confluent acknowledged that it did “sell a very small amount of its products in Illinois” but insisted both that “none of th[o]se products [were] related to the IVC filters at issue in this litigation” and that sales of those products in Illinois represented only a de minimis amount (less than 0.05%) of its total sales.

¶ 11 Confluent attached to its motion the affidavit of its plant controller Jorge Kau, who attested to all of the above factual information. The only discrepancy between the facts as presented in Confluent’s motion and Mr. Kau’s affidavit was that Mr. Kau said that Confluent’s nitinol-product sales in Illinois made up 0.5% of its total sales, rather than 0.05%.

¶ 12 During a September 24, 2019, hearing in the circuit court, the parties discussed Confluent’s proposed stipulation that, during the time Confluent had manufactured the nitinol component for use in Cordis’s OptEase filters, it “was generally aware that Cordis was selling the IVC filters in the United States” but “was not aware of the specific states into which Cordis sold its IVC filters, including whether Cordis sold its IVC filters in Illinois.” At oral argument in this court there appeared to be some dispute about whether this had formally been stipulated to. Having reviewed

the complete transcript of the hearing, it appears to us that Ms. Harding’s counsel in fact agreed to this statement. The stipulation further stated that Confluent manufactured its component parts in California and shipped them to Juarez and that, “[f]rom there, any decision on the ultimate destination of the IVC filters was Cordis’[s].” The parties agreed that Confluent had “never had control over the ultimate destinations of the IVC filters.”

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Harding v. Cordis Corp., 2021 IL App (1st) 210032, 196 N.E.3d 514, 458 Ill. Dec. 210 (Ill. Ct. App. 2021).

2021 IL App (1st) 210032 (Harding v. Cordis Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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