LTL MANAGEMENT LLC v. EMORY

CourtDistrict Court, D. New Jersey
DecidedApril 30, 2024
Docket3:23-cv-03649
StatusUnknown

This text of LTL MANAGEMENT LLC v. EMORY (LTL MANAGEMENT LLC v. EMORY) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LTL MANAGEMENT LLC v. EMORY, (D.N.J. 2024).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

LTL MANAGEMENT LLC, Plaintiff, Civil Action No. 23-3649 (ZNQ) (RLS) y, DR. THERESA SWAIN EMORY, et al, OPINION Defendants.

QURAISHE, District Judge THIS MATTER comes before the Court upon a Motion to Dismiss (the “Motion”, ECF No, 16) filed by Defendants Dr. Theresa Emory (“Emory”), Dr. John Maddox (“Maddox”), and Dr. Richard Kradin’s (“Kradin”) (collectively “Defendants”). Defendants filed a brief in support of their Motion. (“Defs.” Moving Br.”, ECF No. 16-1.) Plaintiff LTL Management LLC (“Plaintiff’ or “LTL”) filed an Opposition. (“P1.’s Opp’n Br.”, ECF No. 19). Defendants filed a Reply. (“Reply Br.”, ECF No. 20). The Court has carefully considered the parties’ submissions and decides the matter without oral argument pursuant to Federal Rule of Civil Procedure 78 and Local Civil Rule 78.1. For the reasons outlined below, this Court lacks personal jurisdiction over Defendants. Accordingly, Defendants’ Motion will be GRANTED.

L BACKGROUND A. FACTUAL BACKGROUND The Court recites only the facts relevant to its personal jurisdiction findings. Defendants

are citizens of Virginia and New Hampshire. (Compl. ff 13-15, ECF No. 1.) LTL is a North Carolina limited liability company with a principal place of business in New Jersey, Ud. { 10.) LTL’s sole member, however, is Johnson & Johnson Holdco (NA) (“Johnson & Johnson”), and as such, LTL is a citizen of New Jersey. Ud. J 11.) Kradin, Maddox, and Emory have all made careers testifying on behalf of plaintiffs in asbestos-related litigation. (Ud. J] 19-27.) Kradin specifically “has been disclosed as a plaintiff's expert in over 200 tale/mesothelioma cases against LTL.” (id. {| 24.) He has testified at both depositions and trials against LTL. (/d.) Maddox also testified in New Jersey for a plaintiff against LTL at least once. Ud. { 27.) Emory is not alleged to have ever testified against LTL, but she is alleged to have been disclosed as an expert witness in New Jersey cases against LTL. (See id. 19-21.) In March 2020, Defendants publishedjan article (the “Article’”) that “purported to provide incremental substantiation for the claim that the use of cosmetic talc powder causes mesothelioma.” Ud. 28, 141.) The Article presented “75 additional subjects, with malignant mesothelioma, whose only known exposute to asbestos was cosmetic talc.” (Ud. | 29.) LTL alleges generally that this Article was fraudulent and misrepresentative. (See generally id.) LTL also alleges that at least one of the Article’s subjects was a New Jersey resident who filed a case in New Jersey against LTL, (See id. 9 74.) The Article does not expressly mention LTL or Johnson &

Johnson in making its findings. (See generally the Article', Ex. A to Compl., ECF No. 1-2.) Plaintiff alleges, however, that Defendants, by impugning the safety of all cosmetic tale products, targeted LTL’s products because they were “the leading brands among a discrete and limited number of cosmetic tale products in the market.” (See Compl. | 152.) The Article was published in the American Journal of Industrial Medicine (the “Journal”). (id. 4 37.) The Journal is operated by the publishing company Wiley, which is headquartered in New Jersey. Ud. 4 41.) A PDF version of the Article manuscript was sent to New Jersey for peer review, and the Article was published ten days after it was submitted to the Journal. (dd. {{{[ 39-40.) B. PROCEDURAL HISTORY Plaintiff filed its Complaint against Defendants on July 7, 2023 alleging three counts arising from Defendants’ publication of the Article: (1) Injurious F alsehood/Product Disparagement?; (2) Fraud; and (3) a Lanham Act violation under Section § 43(a), 15 U.S.C. § 1125(a). Ud. 145-76.) On September 15, 2023, Defendants moved to dismiss on three primary grounds: lack of standing, lack of personal jurisdiction, and failure to state a claim. (See generally Defs.’ Moving Br.)

i A Court may consider at the motion to dismiss stage a “document integral to or explicitly relied upon in the complaint without converting the motion [to dismiss] into one for summary judgment.” Jn re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1426 (Gd Cir. 1997) (emphasis omitted) (citations omitted). 2 The Third Circuit has noted that the terminology in this area of law is confusing. Count I of the Complaint asserts a claim for “injurious falsehood / product disparagement.” (Compl. f] 145-61.) “New Jersey law recognizes product disparagement as a cause of action emanating from the more general tort of injurtous falsehood.” Gillon v. Bernstein, 218 Supp. 3d 285, 296 (citing Sys. Operations, Inc. v. Sci. Games Dev. Corp., 555 F.2d 1131 Gd Cir. 1977)). However, in the Moving and Reply briefs, Defendants refer to the Count I claim as trade libel, This is because “t}rade libel has also been referred to as “product disparagement.” Pacira BioSciences, Inc. v. Am. Soc’y of Anesthesiologists, Inc., 63 F.4th 240, 244 n.7 (3d Cir. 2023). For consistency, here the Court uses the term “product disparagement.”

I. LEGAL STANDARD A. RULE 12(b)() Standing under Article HI of the United States Constitution is an element of subject matter jurisdiction. See Hartig Drug Co. Inc. v. Senju Pharm. Co., 836 F.3d 261, 269 (3d Cir. 2016). Under Rule 12(b)(1)’, “a court must grant a motion to dismiss if it lacks subject-matter jurisdiction to hear a claim.” In re Schering Plough Corp. Intron/Temodar Consumer Class Action, 678 F.3d 235, 243 (3d Cir. 2012), “A motion to dismiss for want of standing is .. . properly brought pursuant to Rule 12(b)(1), because standing is a jurisdictional matter.” Ballentine v. United States, 486 F3d 806, 810 3d Cir. 2007). When considering a Rule 12(b)(1) standing challenge, the Court must determine whether the attack is facial or factual. Schering Plough, 678 F.3d at 243. “A facial attack, as the adjective indicates, is an argument that considers a claim on its face and asserts that it is insufficient to invoke the subject matter jurisdiction of the court because . . . it does not present a question of federal law, or because . . . some other jurisdictional defect is present.” Constitution Party of Pa.

y. Aichele, 757 F.3d 347, 358 (3d Cir. 2014). When reviewing a facial attack, a “court must only consider the allegations of the complaint and documents referenced therein and attached thereto, in the light most favorable to the plaintiff.” Gould Elec. Ine. v. United States, 220 F.3d 169, 176 (3d Cir. 2000). Although the plaintiff bringing an action in federal court bears the burden of establishing jurisdiction, upon reviewing a facial attack, a “court must consider the allegations of the complaint as true.” Mortensen v. First Fed. Sav. & Loan Ass'n, 549 F.2d 884, 891 (3d Cir. 1977). Factual attacks, in contrast, argue that subject matter jurisdiction is improper “because the facts of the case . . . do not support the asserted jurisdiction.” Aichele, 757 F.3d at 358. The

3 All references to “Rule” or “Rules” hereinafter refer to the Federal Rules of Civil Procedure. □

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LTL MANAGEMENT LLC v. EMORY, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ltl-management-llc-v-emory-njd-2024.