In re Pharmaceutical Industry Average Wholesale Price Litigation

307 F. Supp. 2d 190, 2004 U.S. Dist. LEXIS 4784, 2004 WL 585855
District Court, D. Massachusetts·Decided January 9, 2004·No. No. MDL.NO.1456, CIV.A.01-12257-PBS·Published·Cited by 18 cases

Opinion

MEMORANDUM AND ORDER

SARIS, District Judge.

I. INTRODUCTION

Plaintiff originally filed this lawsuit in Maricopa County, Arizona on March 18, 2002 seeking to recover damages for overcharges paid by patients for prescription drugs as a result of an alleged conspiracy to market and sell the drugs at inflated prices. Plaintiff initially named ten pharmaceutical company defendants and twenty individual defendants, and subsequently filed subsequent amended complaints, on June 28, 2002, and December 20, 2002, adding several additional corporate defendants, including GlaxoSmithKline, P.L.C. (“GSK”). On January 10, 2003, GSK filed a Notice of Removal.

Relying on the Rule of Unanimity, plaintiff moves to remand this ease on the ground that the case was improperly removed to federal court because not all defendants consented to removal. Defendants respond that removal is appropriate because G.D. Searle & Co., Inc. (“Searle”), the defendant that failed to consent, was misnamed on the summons and, therefore, not properly served. After hearing and supplemental briefing, the motion to remand is ALLOWED.

II. DISCUSSION

A. Rule of Unanimity

In cases involving multiple defendants, all defendants who have been served must join or assent in the removal petition. See Montana v. Abbot Labs., 266 F.Supp.2d 250, 260 (D.Mass.2003) (citing Lapides v. Board of Regents of the Univ. Sys. of Ga., 535 U.S. 613, 620, 122 S.Ct. 1640, 152 L.Ed.2d 806 (2002)). This rule of unanimity requires that all defendants file their notice of removal or consent to removal within thirty days of being served, and failure to do so is a ground for remand. Id. at 260. While some courts have construed § 1446(b) to require that the consent to removal be in writing, see Getty Oil Corp. v. Ins. Co. of N. Am., 841 F.2d 1254, 1262 n. 11 (5th Cir.1988), most courts have held more generally that the rule of unanimity requires that each defendant’s consent “be manifested clearly and unambiguously to the Court within the statutorily prescribed thirty days.” Sansone v. Morton Machine Works, Inc., 188 F.Supp.2d 182, 184 (D.R.I.2002) (collecting cases and finding that “overwhelming weight of authority requir[es] that each defendant independently notify the court of its consent”).

Plaintiff argues that the ease must be remanded to state court regardless of Searle’s lack of consent. Under the so-called “first-served defendant rule,” a later-served defendant has no ability to remove the case to federal court if the thirty-day period has run with respect to an earlier-served defendant. See Getty Oil Corp., 841 F.2d at 1262-63 (“In cases involving multiple defendants, the thirty-day period begins to run as soon as the first defendant is served .... ”); Brown v. Demco, Inc., 792 F.2d 478, 482 (5th Cir.1986) (holding that the unfairness of allowing defendants to remove after litigating for years in state court outweighs any unfairness in depriving later-served defendant of opportunity to remove).

Defendants urge the Court to adopt the “last-served defendant rule,” under which the last-served defendant has thirty days from the date of service on it to file a notice of removal with the unanimous consent of its co-defendants, even though the previously-served co-defendants did not file a notice of removal within thirty days of service on them. Marano Enters. v. Z-Teca Rests., 254 F.3d 753, 757 (8th Cir.[194]*1942001); Brierly v. Alusuisse Flexible Packaging, Inc., 184 F.3d 527, 533 (6th Cir.1999) (“If Congress had intended the 30-day removal period to commence upon service of the first defendant, it could have easily so provided.”).

The First Circuit has not adopted either rule. This Court need not adopt one either, for even under last-served defendant rule, the case must be remanded because not all defendants have consented to GSK’s removal petition within thirty days. No court applying the last-served rule has eviscerated the requirement of unanimous consent by all defendants in the case.

B. G.D. Searle

Conceding that Searle did not notify the Court of its consent to removal, defendants argue that Searle’s consent is unnecessary as Searle was not properly served with process, having been misnamed in the summons.1 See Abbot Labs., 266 F.Supp.2d at 260 (“[A]ll defendants who have been served must join or assent in the removal petition.”) (emphasis added).

The record demonstrates that on January 3, 2003, Searle was served with a summons that named another defendant, Hoechst Marion Roussel, Inc., although the caption of the summons named both Searle and Hoescht Marion Roussel. The record indicates that Senior Administrative Assistant Cheryl L. Carr accepted service of the second amended complaint on behalf of Searle on January 3, 2003, at Searle’s offices in Skokie, Illinois. The case caption on the complaint listing all defendants includes Searle, and the complaint specifically refers to Searle several times.

Plaintiffs served the second amended complaint a second time on February 25, 2003. A package containing a summons directed to G.D. Searle & Company as well as a copy of the second amended complaint was delivered to a security guard working at the building located at 5200 Old Orchard Road, Skokie, Illinois, 60077, where Searle maintains its principal place of business. The security guard, who was employed by an independent security contractor, was not authorized to accept service on behalf of Searle. The security guard then delivered the package to the legal department of Pharmacia in that building. Pharmacia is the former corporate parent company of Searle. Searle has never contested service, and joined in an opposition in the MDL proceedings to plaintiffs’ motion to vacate conditional transfer (Order No. 7).

The disputed issue before the Court is whether the thirty-day deadline for consent to removal began to run on January 3, when the complaint and summons were served, despite the misnomer in the summons. The adequacy of service on February 25, 2003 is not directly relevant because it was made after GSK filed notice of removal.

The removal statute requires that “the notice of removal of a civil action or proceeding shall be filed within thirty days after the receipt by the defendant, through service or otherwise, of a copy of the initial pleading setting forth the claim for relief upon which such action or proceeding is based ....” 28 U.S.C. § 1446(b) (emphasis added). The Supreme Court has clarified the meaning of the term “through service or otherwise,” by holding that the 30-day removal period does not begin to run until a defendant is formally served with the complaint. In Murphy Brothers v. Michetti Pipe Stringing, Inc.,

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In re Pharmaceutical Industry Average Wholesale Price Litigation, 307 F. Supp. 2d 190, 2004 U.S. Dist. LEXIS 4784, 2004 WL 585855 (D. Mass. 2004).

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