Lopez v. AngioDynamics, Inc.

CourtDistrict Court, D. Massachusetts
DecidedOctober 28, 2021
Docket1:21-cv-11353
StatusUnknown

This text of Lopez v. AngioDynamics, Inc. (Lopez v. AngioDynamics, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lopez v. AngioDynamics, Inc., (D. Mass. 2021).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS

* JESUS LOPEZ, * * Plaintiff, * * v. * * Civil Action No. 21-cv-11353-ADB ANGIODYNAMICS, INC. and NAVILYST * MEDICAL, INC., * * Defendants. * *

MEMORANDUM AND ORDER

BURROUGHS, D.J. Plaintiff Jesus Lopez alleges that he was injured by a defective medical device made by Defendants AngioDynamics, Inc. (“AngioDynamics”) and Navilyst Medical, Inc. (“Navilyst,” and, together with AngioDynamics, “Defendants”). [ECF No. 1-1]. Currently before the Court are Mr. Lopez’s motion for remand, [ECF No. 21], and Defendants’ motion to dismiss for lack of personal jurisdiction, [ECF No. 9]. For the reasons set forth below, Mr. Lopez’s motion is DENIED, and Defendants’ motion is GRANTED. Mr. Lopez’s complaint is DISMISSED without prejudice. I. BACKGROUND A. Factual Background The following facts are taken from the operative complaint, [ECF No. 1-1], the factual allegations of which are assumed to be true when considering a motion to dismiss. Ruivo v. Wells Fargo Bank, N.A., 766 F.3d 87, 90 (1st Cir. 2014). Mr. Lopez is a Texas resident. [ECF No. 1-1 ¶ 2]. AngioDynamics and Navilyst are both Delaware corporations. [Id. ¶¶ 3–4]. In 2003, Horizon Medical Products (“Horizon”) received clearance to market and sell a vascular access device called the Triumph VTX Port with LiveValve Catheter (the “Triumph”).

[ECF No. 1-1 ¶ 15]. Shortly thereafter, Horizon merged with Rita Medical Systems (“Rita”), which was being acquired by AngioDynamics. [Id. ¶ 16]. AngioDynamics then sold a different vascular access device, the Vortex port system (the “Device”), under the Triumph’s regulatory authorization. [Id. ¶¶ 17–18]. The Device is designed to deliver medication, intravenous fluids, parenteral nutrition solutions, and blood products directly into the bloodstream. [Id. ¶ 21]. It consists of two parts: an injection port and a silicone catheter. [Id. ¶ 23]. Because of an alleged design and manufacturing defect, the catheter sometimes fractures, which can lead to devastating results. [Id. ¶¶ 26–32, 34–36]. Before Mr. Lopez was implanted with the Device, Defendants were aware that catheters were fracturing and pieces were migrating through patients’ bodies, with catastrophic consequences. [Id. ¶¶ 36–42].

On June 26, 2019, Mr. Lopez was implanted with the Device at a hospital in Texas. [ECF No. 1-1 ¶ 47]. On July 9, 2019, the Device, which was leaking chemotherapy medication because of catheter failure, was surgically removed from Mr. Lopez at a different hospital in Texas. [Id. ¶ 49]. As a result of this ordeal, Mr. Lopez experienced significant mental and physical pain and suffering, sustained physical injuries and permanent physical deformities, underwent (and will undergo additional) corrective surgery, and suffered financial and economic losses (including medical expenses and lost wages). [Id. ¶ 56]. B. Procedural Background Mr. Lopez filed this suit in Middlesex County Superior Court on July 4, 2021, [ECF No. 1-3], and filed the operative complaint in that court on July 29, 2021, [ECF No. 1-1]. On August 19, 2021, Defendants removed the case. [ECF No. 1]. On August 26, 2021, Defendants moved

to dismiss for lack of personal jurisdiction. [ECF No. 9]. Mr. Lopez opposed on September 9, 2021, [ECF No. 16], and Defendants replied on September 28, 2021, [ECF No. 23]. Additionally, Mr. Lopez filed a motion for remand on September 16, 2021, [ECF No. 21], which Defendants opposed on September 30, 2021, [ECF No. 24]. II. MR. LOPEZ’S MOTION FOR REMAND Defendants removed this case based on diversity jurisdiction. See [ECF No. 1 ¶ 5]. “Federal diversity jurisdiction is available in cases arising between citizens of different states in which the amount in controversy exceeds $75,000.” Rizzi v. 178 Lowell St. Operating Co., 180 F. Supp. 3d 66, 67 (D. Mass. 2016) (citing 28 U.S.C. § 1332(a)). Mr. Lopez admits that the diversity and amount-in-controversy requirements are satisfied here but maintains that because

Defendants are Massachusetts citizens, the “forum defendant rule” precludes removal. [ECF No. 22 at 3 (emphasis omitted)]. Defendants counter that the forum defendant rule has no bearing here because they are not Massachusetts citizens. [ECF No. 24 at 9–17]. Removal premised on diversity jurisdiction is improper “if any of the parties in interest properly joined and served as defendants is a citizen of the State in which such action is brought.” 28 U.S.C. § 1441(b)(2). “This is known as the ‘forum defendant rule.’” DaSilva v. Baader Ger., 514 F. Supp. 3d 393, 397 (D. Mass. 2021) (quoting Rizzi, 180 F. Supp. 3d at 68). “A corporation’s citizenship, for diversity jurisdiction purposes, is both the state where it is incorporated and the state ‘where it has its principal place of business.’” Celli v. Greenwich Ins. Co., 478 F. Supp. 3d 93, 95–96 (D. Mass. 2020) (quoting 28 U.S.C. § 1332(c)(1)). It is undisputed that Defendants are incorporated in Delaware. See [ECF No. 1-1 ¶¶ 3–4; ECF No. 1-2 ¶¶ 3, 7]. Accordingly, the forum defendant rule precludes removal only if either

AngioDynamics or Navilyst has its principal place of business in Massachusetts. For the reasons that follow, the Court finds that each has its principal place of business in New York. Several years ago, the Supreme Court established beyond any doubt that federal courts must employ the “nerve center” test to determine the location of a corporation’s principal place of business. The test is straightforward. A corporation’s “nerve center” (i.e., its principal place of business) is the particular location from which its “officers direct, control, and coordinate the corporation’s activities.” Generally speaking, this will “be the place where the corporation maintains its headquarters—provided that the headquarters is the actual center of direction, control, and coordination . . . and not simply an office where the corporation holds its board meetings (for example, attended by directors and officers who have traveled there for the occasion).” Harrison v. Granite Bay Care, Inc., 811 F.3d 36, 40 (1st Cir. 2016) (citations omitted) (quoting Hertz Corp. v. Friend, 559 U.S. 77, 80–81, 92–93 (2010)). “At its heart, the nerve center test is an inquiry to find the one location from which a corporation is ultimately controlled.” Id. at 41. Based on the nerve center test, it is clear that Defendants’ principal places of business are in New York. As noted in an affidavit filed by Stephen A. Trowbridge, AngioDynamics’ Executive Vice President and CFO: (1) Navilyst is a wholly-owned subsidiary of AngioDynamics, [ECF No. 1-2 ¶ 6]; (2) Navilyst’s U.S. operations are “entirely carried out and controlled by AngioDynamics,” [id. ¶ 9]; (3) the people who work for Navilyst are AngioDynamics’ employees, [id. ¶ 10]; (4) AngioDynamics’ chief executives (including its CEO, CFO, and General Counsel) and its accounting, legal, and human resources departments are based in New York, [id. ¶ 8]; and (5) “[a]ll significant corporate decisions,” for both AngioDynamics and Navilyst, are made, or reviewed and approved, by executives based in New York, [id. ¶ 11].1 Given the foregoing, the Court finds that Defendants are “ultimately controlled” from New York. See Harrison, 811 F.3d at 41. Mr. Lopez advances evidence purportedly demonstrating that Defendants have their principal places of business in Massachusetts, [ECF No. 22 at 4–8], but the Court has already

rejected nearly-identical evidence in four nearly-identical cases, see Memorandum and Order at 5, Mora v.

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