In Re Diet Drugs (Phentermine/Fenfluramine/Dexfenfluramine) Products Liability Litigation

543 F.3d 179, 2008 U.S. App. LEXIS 19340, 2008 WL 4166907
CourtCourt of Appeals for the Third Circuit
DecidedSeptember 11, 2008
Docket07-1957
StatusPublished
Cited by25 cases

This text of 543 F.3d 179 (In Re Diet Drugs (Phentermine/Fenfluramine/Dexfenfluramine) Products Liability Litigation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Diet Drugs (Phentermine/Fenfluramine/Dexfenfluramine) Products Liability Litigation, 543 F.3d 179, 2008 U.S. App. LEXIS 19340, 2008 WL 4166907 (3d Cir. 2008).

Opinion

OPINION OF THE COURT

SCIRICA, Chief Judge.

Gay Patterson is a claimant seeking payment under the National Class Action Settlement Agreement (“Settlement Agreement”) in this multi-district litigation. 1 Under the Settlement Agreement, Wyeth, formerly American Home Products Corporation, has contributed funds for the payment of claims. AHP Settlement Trust (“Trust”) administers and reviews the claims and awards benefits to class members who qualify under the terms of the Settlement Agreement.

Patterson contends she suffers from moderate mitral regurgitation, a medical condition that, if adequately demonstrated, would qualify her for payment. Patterson submitted her claim to the Trust, supporting it with an attesting physician’s interpretation of an echocardiogram. The Trust referred her claim to an independent auditing cardiologist who concluded that the attesting physician’s opinion lacked a reasonable medical basis. Accordingly, the Trust denied Patterson’s claim.

The Trust then applied for an order requiring Patterson to show cause why the claim should be paid. The District Court *181 issued an order,to show cause and referred the matter to a special master. After the show cause proceedings, the District Court denied recovery finding no reasonable medical basis for Patterson’s claim. We will affirm.

I.

A.

This case is part of a multi-district litigation concerning diet drugs previously sold by Wyeth — fenfluramine (marketed as “Pondimin”), and dexfenfluramine (marketed as “Redux”). In previous decisions, we have provided detailed descriptions of the diet drugs litigation. See, e.g., In re Briscoe, 448 F.3d 201, 206-08 (3d Cir.2006); In re Diet Drugs, 401 F.3d 143, 147-48 (3d Cir.2005); In re Diet Drugs, 385 F.3d 386, 389-92 (3d Cir.2004); In re Diet Drugs, 282 F.3d 220, 225-29 (3d Cir.2002). We limit our discussion here to the facts pertinent to the present appeal.

In November 1999, Wyeth and the representatives for plaintiffs entered into the Settlement Agreement. After conducting fairness proceedings, the District Court certified a settlement class and approved the Settlement Agreement which became final upon exhaustion of all appeals.

The amount of a claimant’s recovery under the Settlement Agreement is determined by damage “matrices” that assess factors such as severity of the medical condition, age of claimant, and length of illness. Patterson seeks Matrix A-l, Level II compensation in the amount of $473,032. In order to recover, a claimant must demonstrate by a reasonable medical basis that she has a qualifying condition.

The only factor in dispute is the severity of Patterson’s medical condition, i.e., whether she has mitral regurgitation 2 at a moderate level. The District Court has noted the importance of measuring the severity of regurgitation because “not all levels of mitral regurgitation are medically *182 significant.” PTO 2640, 236 F.Supp.2d at 450. “Mild and trace regurgitation, two lesser grades of valvular regurgitation identified in medical literature, are normal and exist in approximately ninety percent of the population. Only when mitral regurgitation reaches the moderate level does it become a serious medical condition.” Id. The Settlement Agreement defines moderate mitral regurgitation “as re-gurgitant jet area in any apical view equal to or greater than 20% of the left atrial area but less than 40% (20-40% RJA/ LAA).” 3

B.

In order to make a Matrix claim under the Settlement Agreement, the claimant must submit a three-part “Green Form” to the Trust. The Green Form requires disclosure of personal and medical information as well as a physician’s certification, based on a reading of an echocardiogram videotape, of the claimant’s level of valvular heart disease. The District Court has previously stated: “[f]or moderate mitral regurgitation to be present, the size of the reverse flowing jet of blood at its most expansive point must encompass between twenty percent and forty percent of the area of the left atrium.” PTO 2640, 236 F.Supp.2d at 450.

Several attorneys, including Patterson’s counsel Kip Petroff, interpreted the Settlement Agreement to require a physician’s report to identify only one frame of an echocardiogram tape showing twenty-to-forty percent regurgitation. On December 19, 2000, Mr. Petroff circulated a memorandum describing “Current Developments” in the FenPhen litigation. The memo articulated this expansive interpretation of the Settlement Agreement:

It is clear that cardiologists who strictly employed the methodology in the National Settlement (maximum regurgitant jet/one view only) are routinely over-reading the echos by at least one order of magnitude. That methodology is acceptable in the world of the National Settlement, but it is not employed in the real world. We have carefully considered this re-evaluation, and it is absolutely clear that employing the National Settlement criteria leads to across-the-board over estimates of valve regurgitation, especially of the mitral valve.
Every client who is graded a moderate MR by National Settlement criteria is a mild at best, a severe is a moderate at best, etc. This will lead to numerous mitral valve cases going from FDA-positive to FDA-negative, and that may be one reason to opt such a client back into the National Settlement or have a new echo done using standard methodology.

Memorandum from Kip Petroff and Robert Kisselburgh to All Referring Attorneys (Dec. 19, 2000).

In a different but related case, the District Court rejected a similar interpretation. See PTO 2610, 236 F.Supp.2d at 451 (holding that “[ojnly after reviewing multiple loops and still frames can a cardiologist reach a medically reasonable assessment as to whether the twenty percent threshold for moderate mitral regurgitation has been achieved”). But, because of Mr. Pe-troffs theory and other dubious practices by other law firms, the Trust was inundated with Green Form claims for Matrix benefits in unanticipated volumes. 4 Under *183 the Policies and Procedures for Audit and Disposition of Matrix Compensation Claims, as approved in PTO 2457 (May 31, 2002), the Trust could audit up to 5% of Matrix claims per quarter, and Wyeth could designate up to 10% of claims per quarter, for an audit by the Trust. As a result, the Trust risked paying out millions of dollars to claimants it believed to be ineligible, but whose claims it could not audit. Wyeth asserts that out of the thirty claims submitted by Petroff

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543 F.3d 179, 2008 U.S. App. LEXIS 19340, 2008 WL 4166907, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-diet-drugs-phenterminefenfluraminedexfenfluramine-products-ca3-2008.