Meyers v. Bayer AG

143 F. Supp. 2d 1044, 2001 U.S. Dist. LEXIS 6913, 2001 WL 560881
CourtDistrict Court, E.D. Wisconsin
DecidedMay 18, 2001
Docket00-C-1582
StatusPublished
Cited by44 cases

This text of 143 F. Supp. 2d 1044 (Meyers v. Bayer AG) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meyers v. Bayer AG, 143 F. Supp. 2d 1044, 2001 U.S. Dist. LEXIS 6913, 2001 WL 560881 (E.D. Wis. 2001).

Opinion

DECISION AND ORDER

ADELMAN, District Judge.

I. FACTUAL AND PROCEDURAL BACKGROUND

Plaintiff Barbara A. Meyers filed this action in state court against defendants Bayer AG and other corporations alleging claims under Wisconsin antitrust and deceptive trade practice laws on behalf of herself and other Wisconsin indirect purchasers of the patented drug ciprofloxacin hydrochloride (“Cipro”). Cipro is a widely used antibiotic; according to plaintiff, it has been the best selling antibiotic in the world for eight consecutive years. Plaintiff alleges that defendant Bayer, which developed and patented Cipro, violated state law by agreeing to pay the other defendants to refrain from marketing a generic Cipro equivalent. 1

Defendants timely removed the case to this court alleging that federal question jurisdiction exists pursuant to 28 U.S.C. §§ 1331 & 1338, because a substantial question of federal patent law must be resolved to decide an essential element of plaintiffs state law antitrust claim, Spe *1046 cifically, defendants contend that plaintiff could prove that she suffered antitrust injury only by demonstrating that Bayer’s Cipro patent is invalid. Alternatively, defendants assert the existence of diversity jurisdiction under 28 U.S.C. § 1332 because the action is between citizens of different states and the amount in controversy is alleged to exceed $75,000. Plaintiff disputes the existence of either federal question or diversity jurisdiction and moves that the case be remanded to state court.

Defendants, in turn, move for a stay of all further proceedings in the case, including the motion to remand, pending a determination by the Judicial Panel on Multidis-trict Litigation (“JPML”) as to whether to transfer the case to the Eastern District of New York pursuant to 28 U.S.C. § 1407. The present case- is one of more than thirty lawsuits filed in state and federal courts in the United States in recent months raising similar or identical claims about Cipro. On December 11, 2000, the JPML ordered six of the cases consolidated and transferred to the Eastern District of New York. In re Ciprofloxacin Hydrocholoride Antitrust Litig., MDL Docket No. 1383 [hereinafter “the MDL proceeding”], 2000 U.S. Dist. LEXIS 18188 (J.P.M.L. Dec. 11, 2000). Since then, twenty-one additional cases have been transferred or conditionally transferred to the MDL proceeding, and on January 23, 2001 the JPML conditionally ordered this case transferred to the MDL proceeding. MDL Proceeding, 2001 U.S. Dist. LEXIS 2415 (J.P.M.L. Jan. 23, 2001.) Plaintiff has opposed the conditional transfer order, and a hearing on that opposition is scheduled to take place before the JPML May 31, 2001 in Washington, D.C.

II. DISCUSSION

The MDL system provides for the transfer of actions with one or more common questions of fact to a single district for coordinated pretrial proceedings. 28 U.S.C. § 1407(a). Congress authorized the JPML • to order transfers only after determining that transfer “will be for the convenience of parties and witnesses and will promote the just and efficient conduct of such actions,” id., and with the expectation that transfers will be ordered “only where significant economy and efficiency in judicial administration may be obtained,” H.R.Rep. No. 90-1130 (1968), reprinted in 1968 U.S.C.C.A.N. 1898, 1900.

A pending JPML transfer motion or conditional transfer order does not affect the jurisdiction of the transferor court or its ability to rule upon any pending motions. Rules of Procedure of the JPML R. 1.5; Gen. Elec. Co. v. Byrne, 611 F.2d 670, 673 (7th Cir.1979). Plaintiff argues that this court should address her motion to remand before addressing defendants’ motion for a stay and makes two arguments in support of this contention: (1) that federal courts are obligated to determine whether they have jurisdiction before ruling on any other motions, therefore, I must address the remand motion before the stay motion; (2) that even if I am not required to give primacy to the motion to remand I should nevertheless do so for reasons of policy. I now turn to these arguments.

A. Judicial Power

In support of her contention that I must address the remand issue first, plaintiff cites the “bedrock principle of federal law” (PL’s Mem. in Opp. to Defs.’ Mot. to Stay at 8), expressed in Ex Parte McCardle, 7 Wall. 506, 74 U.S. 506, 514, 19 L.Ed. 264 (1868): “Without jurisdiction the court cannot proceed at all in any cause. Jurisdiction is power to declare the law, and when it ceases to exist, the only function remaining to the court is that of announcing the fact and dismissing the cause.” In *1047 Steel Co. v. Citizens for a Better Environment, 523 U.S. 83, 93-101, 118 S.Ct. 1003, 140 L.Ed.2d 210 (1998), the Supreme Court emphasized that a court may not resolve contested questions of law on the assumption that jurisdiction exists. A federal court may not proceed to the merits of a case without first verifying that it has jurisdiction under Article III of the Constitution. Id. at 101-02, 118 S.Ct. 1003.

To say that I am powerless to take any action at all before verifying my jurisdiction, however, slightly overstates the matter. For example, it is a “primordial element of our jurisprudence” that federal courts have jurisdiction to determine whether they have subject matter jurisdiction. Shannon v. Shannon, 965 F.2d 542, 545 (7th Cir.1992). What Steel Co. forbids is a court’s assuming law-declaring power by deciding the merits of a case in the absence of verified subject matter jurisdiction. Scott C. Idleman, The Demise of Hypothetical Jurisdiction in the Federal Courts, 52 Vand. L.Rev. 235, 333 & n. 409 (1999) (quoting In Re Minister Papandreou, 139 F.3d 247, 255 (D.C.Cir.1998)). However, granting a stay is not adjudicating the merits of a case. Neither McCar-dle nor Steel Co. requires resolving jurisdictional matters before considering whether to grant a stay motion. 2

Further, “the power to stay proceedings is incidental to the power inherent in every court to control the disposition of the causes on its docket with economy of time and effort for itself, for counsel, and for litigants.” Landis v. N. Am. Co., 299 U.S. 248, 254, 57 S.Ct. 163, 81 L.Ed. 153 (1936) (Cardozo, J.). See also Clinton v. Jones,

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143 F. Supp. 2d 1044, 2001 U.S. Dist. LEXIS 6913, 2001 WL 560881, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meyers-v-bayer-ag-wied-2001.