In Re Dalkon Shield Litigation

581 F. Supp. 135, 1983 U.S. Dist. LEXIS 11637
CourtDistrict Court, D. Maryland
DecidedNovember 16, 1983
StatusPublished
Cited by8 cases

This text of 581 F. Supp. 135 (In Re Dalkon Shield Litigation) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Dalkon Shield Litigation, 581 F. Supp. 135, 1983 U.S. Dist. LEXIS 11637 (D. Md. 1983).

Opinion

MEMORANDUM

NORTHROP, Senior District Judge.

Presently pending in this Court’s “Daikon Shield” cases are motions to dismiss filed by defendant, A.H. Robins Company (Robins) in which defendant, Hugh J. Davis, M.D., generally joins. Defendants request dismissal against all those plaintiffs who reside outside the State of Maryland on the basis of improper venue under 28 U.S.C. § 1391(a), and pursuant to the doctrine of forum non-conveniens. Due to the similarity in the legal issues and factual allegations in the cases, the motions were consolidated and presented to me for decision.

These products liability, personal injury cases represent a small sampling of the litigation that has taken place nationwide concerning the Daikon Shield, an intrauterine contraceptive device. In virtually every suit, the plaintiffs contend that the Daikon Shield was a dangerous and defective product, that the defendants deliberately concealed their knowledge of these defects, that the defendants marketed and sold the Shields to the plaintiffs while grossly exaggerating their safety and efficacy, and that as a proximate result of these acts, the plaintiffs suffered grave injury and other medical harm. Though the plaintiffs’ allegations of injuries vary, they often include, but are not limited to, suggestions of infertility, life threatening pelvic infections, severe pain and suffering, and loss of consortium.

The claims have been brought under several legal theories. Among them are fraud, negligence, strict liability, breach of express warranties, breach of implied warranties, negligent recall of defective product, and conspiracy. Liability is generally asserted as being shared by the defendants, jointly and severally.

VENUE

Primarily, jurisdiction in the Daikon Shield cases is based on diversity of citizen *137 ship. 1 Accordingly, the provisions of 28 U.S.C. § 1391(a) control. That section provides:

A civil action wherein jurisdiction is founded only on diversity of citizenship may, except as otherwise provided by law, be brought only in the judicial district where all plaintiffs or all defendants reside, or in which the claim arose.

The application of this rule as it concerns corporate defendants is found in 28 U.S.C. § 1391(c). It reads:

A corporation may be sued in any judicial district in which it is incorporated or licensed to do business or is doing business and such judicial district shall be regarded as the residence of such corporations for venue purposes.

The defendants contend that venue is not proper in Maryland because the plaintiffs in these cases do not reside in Maryland, and the defendant A.H. Robins Co. was not incorporated, licensed or “doing business” in Maryland, and further that the claims did not arise in Maryland. Plaintiffs, on the other hand, generally contend that not only was A.H. Robins “doing business” in Maryland at the relevant time, but the claims arose in Maryland since much of the research and medical testing of the Daikon Shield was done in Maryland at the Johns Hopkins Hospital.

The burden of proof rests with the plaintiff to show that venue is appropriate in a particular district. Bartholomew v. Virginia Chiropractors Associations, Inc., 612 F.2d 812 (4th Cir.1979), cert. denied, 446 U.S. 938, 100 S.Ct. 2158, 64 L.Ed.2d 791 (1980). Plaintiffs, in their supplemental memorandum in opposition to the defendants’ motion to dismiss for improper venue, state that the discovery, and in particular defendant Robins’ answers to interrogatories, has established that Robins’ activities in Maryland are purposeful, continuing, and produce millions of dollars of sales annually for the defendant company and therefore, Robins can be found to be “doing business” in Maryland for venue purposes. More specifically, plaintiffs point to the following facts as dispositive of the “doing business” issue: 2 (1) defendant Robins distributes approximately 193 consumer products and hundreds of pharmaceutical products, an amount valued at over ten million dollars of which was distributed in Maryland between November, 1981 through July, 1983; Robins has at least eleven full-time sales employees who were Maryland residents; Robins targeted over 1,500 physicians to be contacted about its products during the first three months of 1982; Robins has 460 current active retail outlets in Maryland. (These facts are taken from the answers of Robins to plaintiffs’ interrogatories.)

From this, plaintiffs argue that venue is proper in Maryland because Robins is “doing business” here. There is a division of authority regarding the standard used to determine the quantum of a defendant’s business contacts necessary for venue purposes. Plaintiff cites inter alia, Nelson v. Victory Electric Works, Inc., 210 F.Supp. 954, 956 (D.Md.1962) and L’Heureux v. Central American Airways Flying Service, Inc., 209 F.Supp. 713 (D.Md.1962) for the proposition that a defendant corporation need only have such contacts as would satisfy the International Shoe v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154,158, 90 L.Ed. 95 (1945) standard for personal jurisdiction. Defendant Robins, on the other hand, relies on Judge Young’s decision *138 in Finance Company of America v. BankAmerica Corp., 493 F.Supp. 895 (D.Md. 1980), which states: “... the ‘doing business’ test is not identical to the minimum contacts jurisdictional standard____” Id. at 910. Judge Young further stated that it is appropriate to consider whether a defendant is doing such business as would require it to register in the state and to decide if defendant’s operation is “localized.”

In this instance, it appears from the briefing and interrogatories that A.H. Robins conducts operations nationwide; thus, whether its business is “localized” is not a meaningful inquiry under these circumstances. However, this Court is in agreement with Judge Young’s decision insofar as it requires something more for venue purposes than the constitutional requirement of minimum contacts for service of process under the International Shoe standard. As was mentioned in the Finance Company case, the “doing business” issue is a matter of federal law. But, it is instructive to look at the factors which enter into the determination of whether the relevant corporation has such contacts as would require it to become licensed or registered in the State.

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Bluebook (online)
581 F. Supp. 135, 1983 U.S. Dist. LEXIS 11637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-dalkon-shield-litigation-mdd-1983.