Henderson, City of v. Purdue Pharma L.P.

CourtDistrict Court, E.D. Kentucky
DecidedJanuary 27, 2020
Docket3:19-cv-00067
StatusUnknown

This text of Henderson, City of v. Purdue Pharma L.P. (Henderson, City of v. Purdue Pharma L.P.) 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
Henderson, City of v. Purdue Pharma L.P., (E.D. Ky. 2020).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF KENTUCKY CENTRAL DIVISION FRANKFORT

CITY OF HENDERSON, KENTUCKY, et ) al., ) Plaintiffs, ) ) V. ) ) PURDUE PHARMA L.P., et al., ) ) Civil No. 3:19-cv-00067-GFVT Defendants; ) Civil No. 3:19-cv-00068-GFVT ) and ) ) MEMORANDUM OPINION HARDIN COUNTY FISCAL COURT, et ) & al., ) ORDER ) Plaintiffs, ) ) V. ) ) PURDUE PHARMA L.P., et al., ) ) Defendants. ) )

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

These two substantially similar cases were both filed in state court on September 13, 2019 and subsequently removed by Defendant Beverly Sacker. [See, e.g., R. 1, 3:19-cv-00067- GFVT.]1 These matters are now before the Court on two pending motions, filed in each case: The Defendant Commonwealth of Kentucky’s Motion to Dismiss [R. 108], and the Defendant McKesson Corporation’s Motion to Stay further proceedings pending a ruling by the Judicial

1 As the filings in each case are substantially similar, for present purposes, any citation to the record that does not indicate otherwise will refer to filings in City of Henderson, Kentucky, et al., v. Purdue Pharma L.P, et al., Civ. No. 3:19-cv-00067-GFVT. Panel on Multidistrict Litigation (JPML) concerning the transfer of these actions to a consolidated Multidistrict Litigation (MDL) case, In re: National Prescription Opiate Litigation, MDL No. 2804. [R. 106.] For the reasons explained below, both the Motion to Dismiss and Motion to Stay will be GRANTED in each case.

I These two cases are related to hundreds of other lawsuits that have been filed throughout the country in recent years. In these lawsuits, plaintiffs typically allege that certain defendants misrepresented the safety and the addictive properties of prescription opioids, failed to comply with relevant legal standards and requirements, and engaged in deceptive conduct that resulted in prescription opioids being over-distributed and over-prescribed. On December 5, 2017, the JPML determined that a large number of cases related to these allegations should be centralized for pretrial proceedings and formed MDL 2804 in the Northern District of Ohio to coordinate the resolution of these actions. See In re Nat'l Prescription Opiate Litig., 290 F. Supp. 3d 1375, 1378 (JPML 2017). Since that time, well over 2,000 cases have been transferred to the MDL

Court. See In re Nat'l Prescription Opiate Litig., No. 1:17-MD-2804, 2019 WL 4686815, at *1 (N.D. Ohio Sept. 26, 2019). The two cases before the Court were originally filed by Plaintiffs in Franklin County Circuit Court, Franklin County, Kentucky on September 13, 2019. [R. 1-2.] Defendant Sackler subsequently removed to federal court under the Class Action Fairness Act of 2005 (CAFA), 28 U.S.C. § 1332(d). [R. 1.] After the initial removal, Defendant McKesson filed a supplemental notice of removal, asserting that removal via 28 U.S.C. § 1441 was also proper on the basis of federal question jurisdiction under 28 U.S.C. § 1331 and, relatedly, asserting supplemental jurisdiction under 28 U.S.C. § 1367(a). [R. 81 at 6, 18.] The JPML then issued a Conditional Transfer Order identifying the present cases as “involv[ing] questions of fact that are common to the actions previously transferred to” the MDL Court. [R. 106-2.] Following removal, and pending the final determination by the JPML of whether these cases should be consolidated, numerous motions have been filed which now require the Court’s attention.

On October 28, 2019, shortly after these actions were removed, Plaintiffs in each case filed a motion to remand to state court. 2 [R. 85.] Defendant McKesson responded in opposition to those motions and has now also moved to stay further proceedings pending the imminent determination by the JPML. [R. 106.] Additionally, Defendant Commonwealth of Kentucky filed motions to dismiss the claims against it in each case. [R. 108.] Both Plaintiffs and Defendant Commonwealth have also filed motions to expedite the rulings regarding their respective motions. [R. 86; R. 109.] These motions have now been fully briefed, the Court has considered the arguments of the parties and applicable law, and this Opinion is the result. II A

The Court will first address Plaintiffs’ motions for remand and Defendant McKesson’s competing motions to stay pending potential transfer to the MDL. [R. 85; R. 106.] McKesson wishes to stay all proceedings, including the remand motions, until the JPML finally resolves the transfer issue. [R. 106 at 1.] On the other hand, Plaintiffs argue this Court should rule on its motions to remand before the JPML concludes that process. [R. 85 at 1; R. 119 at 2.]

2 As noted above, the filings in these cases are substantially similar. For example, the arguments included in Plaintiffs’ motion to remand in the related case [R. 86, Hardin Fiscal Court, et al., v. Purdue Pharma L.P, et al., Civ. No. 3:19-cv-00068-GFVT], are identical to the arguments made by the Plaintiffs in Civ. No. 3:19-cv-00067-GFVT, both arguing, in part: “First, as a dispositive procedural requirement, McKesson’s notice is not supported by all of the defendants.” [R. 85 at 1; R. 86 at 1, Hardin Fiscal Court, Civ. No. 3:19-cv-00068-GFVT.] The decision whether to grant a stay is discretionary because “the power to stay proceedings is incidental to the power inherent in every court to control the disposition of the causes on its docket with economy of time and effort for itself, for counsel, and for litigants.” Landis v. N. Am. Co., 299 U.S. 248, 254 (1936) (Cardozo, J.); Meyers v. Bayer AG,

143 F. Supp. 2d 1044, 1047 (E.D. Wis. 2001) (quoting Landis, 299 U.S. at 254, as support for the district court’s power to stay a case pending transfer by the JPML). As relevant in the present context, the Manual for Complex Litigation notes that a “stay pending the Panel's decision can increase efficiency and consistency, particularly when the transferor court believes that a transfer order is likely and when the pending motions raise issues likely to be raised in other cases as well.” Manual for Complex Litigation (4th ed.) § 22.35 (2005). Further, 28 U.S.C. § 1407 specifically authorizes the JPML to transfer cases even when there is a motion to remand pending in the district court, although the JPML’s consideration of transfer does not deprive the district court of its own inherent authority to rule on the remand motion itself. See Judicial Panel on Multidistrict Litigation, Rule 2.1(d). Therefore, this Court has the power to

resolve the instant motions despite the ongoing JPML process. The issue here is whether to exercise the Court’s discretion to issue a temporary stay in each of these cases or to immediately remand to state court. In making this determination, the Court notes that some courts choose to rule on pending motions to remand before the JPML decides to transfer the case, while many other courts decide to issue a stay pending the JPML’s decision even when a motion to remand is also pending. Compare, e.g., Kantner v. Merck & Co., 2005 WL 277688 (S.D. Ind. Jan. 26, 2005) (ruling on remand motion before any potential transfer by JPML); with Benge v.

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Bluebook (online)
Henderson, City of v. Purdue Pharma L.P., Counsel Stack Legal Research, https://law.counselstack.com/opinion/henderson-city-of-v-purdue-pharma-lp-kyed-2020.