Mills v. Codman & Shurtleff, Inc.

CourtDistrict Court, E.D. Kentucky
DecidedMarch 19, 2021
Docket6:19-cv-00248
StatusUnknown

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

Bluebook
Mills v. Codman & Shurtleff, Inc., (E.D. Ky. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF KENTUCKY SOUTHERN DIVISION LONDON

GILLIANA R. MILLS, CIVIL ACTION NO. 6:19-248-KKC Plaintiff, v. ORDER AND OPINION JOHNSON & JOHNSON, and CODMAN & SHURTLEFF, INC., Defendants.

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This matter is before the Court on Defendant Johnson & Johnson’s motion for summary judgment. (DE 26.) For the following reasons, the Court grants Defendant’s motion. I. Background A. Plaintiff’s Surgical Implantations of Shunts and Valves On January 7, 2011, surgeons implanted a shunt and valve into Plaintiff Gilliana R. Mills’ brain to remedy Mills’ recurrent memory loss and migraines. (Second Am. Compl. ¶¶ 7-8.) Mills alleges that Defendant Codman & Shurtleff, Inc. (“Codman”) designed and manufactured this shunt and valve. (Id. ¶¶ 5, 56.) While Mills’ symptoms initially ceased, they began reemerging around July 2011. (Id. ¶ 10.) Because of her increasingly worsening symptoms, Mills scheduled an appointment with her surgeon in May 2018. (Id. ¶ 18.) Her surgeon suspected that her shunt and valve were malfunctioning. (Id. ¶ 19.) On July 3, 2018, Mills attended a “preoperative” visit with her surgeon to replace the shunt because its programming was “not working.” (Id. ¶ 27.) On July 9, 2018, Mills underwent surgery to replace the preexisting shunt and valve (“the first device”) with another shunt and valve (“the second device”). (Id. ¶ 31.) Mills also alleges that Codman designed and manufactured the second device. (Id. ¶ 56.) Following the implantation of the second device, Mills continued experiencing headaches, swelling, neck pain, balance issues, dizziness, and blurred vision. (Id. ¶¶ 37, 41- 44, 49-50, 52-53.) Between July 9, 2018, and June 24, 2019, doctors reprogrammed Mills’ second device on multiple occasions. (See id. ¶¶ 38, 42, 46, 50, 54.) On June 24, 2019, Mills underwent an additional surgery to replace the second device with a third shunt and valve.

(Id. ¶¶ 57-61.) Because of the allegedly defective first and second devices, Mills asserts that she has suffered permanent physical impairment, impairment of her ability to earn wages, loss of the enjoyment of life, and pain and suffering. (Id. at 20.) According to Mills, she has accrued lost wages, medical expenses, and costs to replace the first and second devices. (Id.) B. Corporate History Between Defendants Codman is a wholly-owned indirect subsidiary of Defendant Johnson & Johnson. (French Decl. ¶ 6; DE 26 at 2.) Codman is not a department or division of Johnson & Johnson. (French Decl. ¶ 12.) Johnson & Johnson and Codman are separate legal entities with separate corporate identities, and neither acts as a shell corporation of the other. (Id. ¶¶ 10, 15.) Johnson & Johnson and Codman maintain separate and independent by-laws, minutes, corporate records, financial records, financial statements, budgets, and bank accounts. (Id. ¶ 11.) Each entity has its own board of directors and officers. (Id. ¶ 10.) Codman is fully capitalized. (Id. ¶ 11.) Both corporations are financially independent of one another, and neither entity diverts assets away from the other for its own benefit. (Id. ¶¶ 11, 14.) Johnson & Johnson does not pay for Codman’s research, salaries, raw materials, or other operating expenses. (Id. ¶ 11.) Codman is responsible for its own profits and losses. (Id.) Both entities own, maintain, and operate their own respective facilities. (Id. ¶ 13.) In 2017, DePuy Synthes, Inc. (“DePuy”), an indirect Johnson & Johnson subsidiary, sold Codman’s neurosurgery product line to Integra LifeSciences Holding Corporation (“Integra”). (DE 26 at 2.) That product line included the devices at issue. (Id.) Before Integra purchased the product line, Codman independently developed, manufactured, marketed, tested, inspected, distributed, and sold shunts and valves. (Id. ¶ 9.) In her declaration, Johnson & Johnson’s Assistant Corporate Secretary, Tina Snyder French, states, “Integra

explicitly assumed all Codman liabilities for lawsuits or claims relating to the design, manufacture, and sale of the Codman products, agreed to indemnify and hold DePuy Synthes harmless for such liabilities, and agreed to arrange for insurance for such claims.” (Id.; French Decl. ¶¶ 2, 7.) C. Procedural History On July 25, 2019, Mills filed her initial complaint against the defendants in Kentucky state court. (DE 26-4.) Defendants removed the case to this Court on October 21, 2019. (DE 1.) Thereafter, Mills filed the Second Amended Complaint. (DE 20.) In her Second Amended Complaint, Mills brings state law claims for product liability, negligence, breach of express warranty, breach of implied warranty, strict liability, violation of the Kentucky Consumer Protection Act (“KCPA”), and punitive damages. (Second Am. Compl. ¶¶ 65-110.) Johnson & Johnson now moves for summary judgment on all claims against it. (DE 26 at 1.) II. Summary Judgment Standard Summary judgment is appropriate “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). The moving party bears the initial burden and must identify “those portions of the [record] which it believes demonstrate the absence of a genuine issue of material fact.” Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986) (citation and quotation marks omitted). The Court must view all evidence, facts, and inferences in favor of the non- moving party. McLean v. 988011 Ontario, Ltd., 224 F.3d 797, 800 (6th Cir. 2000). “In order to defeat a summary judgment motion, . . . [t]he nonmoving party must provide more than a scintilla of evidence” or “sufficient evidence to permit a reasonable jury to find in that party’s favor.” Van Gorder v. Grand Trunk W. R.R., Inc., 509 F.3d 265, 268 (6th Cir. 2007). III. Analysis A. Mills’ Punitive Damages Claim Fails as a Matter of Law

“While [a] plaintiff may seek punitive damages, a claim for punitive damages is not a separate cause of action, but a remedy potentially available for another cause of action.” Cutter v. Ethicon, Inc., Civil Action No. 5:19-443-DCR, 2020 WL 109809, at *4 (E.D. Ky. Jan. 9, 2020) (citations, quotation marks, and brackets omitted). Mills’ separate punitive damages claim therefore fails as a matter of law, and the Court grants summary judgment for Johnson & Johnson as to that claim. B. Johnson & Johnson Is Not Liable for Codman’s Acts Johnson & Johnson argues that it is not liable for any claims related to Codman’s products because general corporate law principles dictate that a parent corporation is not liable for the acts of its subsidiaries. (DE 26 at 6.)1 Mills responds that Johnson & Johnson’s motion for summary judgment is premature because she has not been afforded a reasonable opportunity for discovery regarding Johnson & Johnson’s role in designing, manufacturing, and selling the allegedly defective devices. (DE 27 at 3.)

1 Johnson & Johnson also argues that Kentucky product liability claims are “limited to manufacturers and distributors in the business of selling the product in question.” (DE 26 at 5 (emphasis in original) (citations and quotation marks omitted).) However, this does not foreclose the possibility that a parent corporation like Johnson & Johnson could be liable for the acts of a subsidiary operating as a manufacturer or distributor. Typically, a parent corporation is not liable for the acts of its subsidiary. United States v. Bestfoods, 524 U.S. 51

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Bluebook (online)
Mills v. Codman & Shurtleff, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/mills-v-codman-shurtleff-inc-kyed-2021.