McCormack v. Abbott Laboratories

617 F. Supp. 1521, 54 U.S.L.W. 2219, 1985 U.S. Dist. LEXIS 15467
District Court, D. Massachusetts·Decided September 30, 1985·No. Civ. A. 76-4564-G·Published·Cited by 26 cases

Opinion

MEMORANDUM AND ORDERS ON MOTIONS TO DISMISS AND MOTIONS FOR SUMMARY JUDGMENT

GARRITY, District Judge.

I. DEFENDANTS’ MOTIONS TO DISMISS

Defendants Eli Lilly and Company, E.R. Squibb & Sons, Inc., and Merck & Company, Inc. have filed motions to dismiss plaintiff’s second amended complaint which arises out of the alleged ingestion by plaintiff’s mother of diethylstilbestrol (“DES”) or DES-related compounds or congenors during the pregnancy which resulted in plaintiff’s birth on April 27, 1955. Plaintiff alleges that on or about April, 1974, she developed vaginal adenosis, pre-eancerous lesions in the vagina, as a direct and proximate result of her mother’s ingestion of DES in 1954 and 1955. According to the complaint, the defendant drug companies 1 negligently designed, manufactured and distributed the drug, failed adequately to test or inspect the drug, failed adequately to warn physicians and the general public of health risks of which the defendants knew or should have known, and negligently misrepresented to the public that the drugs were safe and effective for use by pregnant women in the prevention of miscarriage. The complaint also contains claims sounding in breach of express and implied warranty and strict liability. Plaintiff seeks to impose liability upon the defendants equally or in proportion to their share of the relevant market.

By way of procedural history, plaintiff’s case was originally consolidated with the case of Payton v. Abbott Laboratories, Civil Action No. 76-1514-S. A class was certified and plaintiff opted to become a member of the class. On December 6, 1983, Judge Skinner decertified the class and plaintiff now prosecutes her action individually. It should be noted, however, that all rulings of substantive law made in Payton between class certification and decertification are binding on plaintiff as a class member and may not be relitigated in the instant case. Order on Motion to Decertify the Class, Civil Action No. 76-1514-S, December 6, 1983 (Skinner, J.).

After hearing and consideration of the briefs, affidavits, and exhibits submitted by the parties, the court grants defendants’ motion in part and denies it in part. With *1524 respect to plaintiff’s claim of strict liability, defendants’ motion to dismiss is allowed. However, the court denies the motion to dismiss plaintiff’s claims of negligence and breach of warranty.

A. Strict Liability:

Plaintiff charges defendants with placing an inherently unsafe and unreasonably dangerous product into the stream of commerce and seeks to impose on the defendants strict liability in tort. Defendants assert that plaintiff’s claim is barred by a prior judgment entered in the Payton case prior to decertification of the plaintiff class. The court agrees.

The Payton defendants filed motions for summary judgment on the issue of strict liability. The motions were granted and judgment was entered on May 16, 1983 “against all named plaintiffs and against all members of the plaintiff class on all claims of strict liability.” Payton v. Abbott Laboratories, Slip Opinion (1983) (Skinner, J.). Decertification did not occur until December, 1983. Plaintiff concedes that she is bound by all rulings of substantive law made in the Payton case prior to December, 1983. Accordingly, plaintiff’s claim of strict liability in tort is precluded by the doctrine of res judicata and hereby is dismissed.

B. Breach of Warranty:

Plaintiff brings claims of breach of express and implied warranties made by defendants that their drugs containing DES were safe, merchantable and fit for the purpose for which they were intended. Defendants seek to have the breach of warranty claims dismissed on the ground that the transactions giving rise to plaintiff’s claims are governed by the Uniform Sales Act, which provided that a party bringing a breach of warranty claim had to establish privity of. contract with the defendant. Massachusetts warranty law is currently modeled after the Uniform Commercial Code, which dispenses with the privity requirement. M.G.L. c. 106, §§ 2-314 to 2-318.

Defendants’ argument has already been advanced and rejected by the court in Payton v. Abbott Laboratories, D.Mass., 1982, 551 F.Supp. 245, 246. In that case, the court held that a cause of action for breach of warranty is available under Massachusetts law to any plaintiff whose physical symptoms first occurred after the effective date of the 1973 amendment of M.G.L. c. 106, § 2-318, namely December 16, 1973. Defendants do not dispute the fact that plaintiff’s physical symptoms first occurred in April, 1975. Accordingly, plaintiff’s claims of breach of warranty state valid causes of action under Massachusetts law and defendants’ motion to dismiss such claims must be denied.

C. Market-Share Liability:

Turning to the principal issues raised by the defendants’ motions, plaintiff seeks to impose liability on the defendants under a “market share” theory in order to bypass the traditional threshold requirement of any products liability action — identification of the injury-causing product and its manufacturer. 2 It is undisputed that plaintiff will not be able to meet the identification requirement. Defendants seek to have plaintiff’s market-share claim dismissed on two grounds: first, Massachusetts law does not recognize a cause of action under a market share theory; and second, even if such a cause of action exists, plaintiff has failed to plead it properly by not alleging that she exercised due diligence in attempting to identify the manufacturer of the drug ingested by her mother and that, through no fault of her own, she was unable to do so.

In order to evaluate the contentions of the parties, the court must review the theory of market-share liability as it has developed in the jurisprudence of Massachusetts and other states in the country.

*1525 1. The Background of Market-Share Liability:

Free access — add to your briefcase to read the full text and ask questions with AI

McCormack v. Abbott Laboratories, 617 F. Supp. 1521, 54 U.S.L.W. 2219, 1985 U.S. Dist. LEXIS 15467 (D. Mass. 1985).

617 F. Supp. 1521 (McCormack v. Abbott Laboratories) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Philip Morris USA, Inc. v. Hallgren
124 So. 3d 350 (District Court of Appeal of Florida, 2013)
Philip Morris USA, Inc. v. Douglas
110 So. 3d 419 (Supreme Court of Florida, 2013)
In Re Pharmaceutical Industry Average Wholesale Price Litigation
491 F. Supp. 2d 20 (D. Massachusetts, 2007)
Engle v. Liggett Group, Inc.
945 So. 2d 1246 (Supreme Court of Florida, 2006)
Armata v. Abbott Laboratories
298 A.D.2d 90 (Appellate Division of the Supreme Court of New York, 2002)
Mills v. Allegiance Healthcare Corp.
178 F. Supp. 2d 1 (D. Massachusetts, 2001)
Hamilton v. Accu-Tek
62 F. Supp. 2d 802 (E.D. New York, 1999)
Thayer v. Pittsburgh-Corning Corp.
698 N.E.2d 1279 (Massachusetts Appeals Court, 1998)
Russo v. Material Handling Specialties Co.
4 Mass. L. Rptr. 288 (Massachusetts Superior Court, 1995)
Monica Santiago v. Sherwin Williams Company
3 F.3d 546 (First Circuit, 1993)
Santiago v. Sherwin-Williams Co.
782 F. Supp. 186 (D. Massachusetts, 1992)
Conley v. Boyle Drug Co.
570 So. 2d 275 (Supreme Court of Florida, 1990)
Smith v. Eli Lilly & Co.
560 N.E.2d 324 (Illinois Supreme Court, 1990)
Christopher v. Duffy
556 N.E.2d 121 (Massachusetts Appeals Court, 1990)
Shackil v. Lederle Laboratories
561 A.2d 511 (Supreme Court of New Jersey, 1989)
Kinnett v. Mass Gas & Electric Supply Co.
716 F. Supp. 695 (D. New Hampshire, 1989)
Hymowitz v. Eli Lilly & Co.
539 N.E.2d 1069 (New York Court of Appeals, 1989)