North Brevard County Hospital District v. C.R. Bard, Inc.

CourtDistrict Court, D. Utah
DecidedDecember 27, 2023
Docket2:22-cv-00144
StatusUnknown

This text of North Brevard County Hospital District v. C.R. Bard, Inc. (North Brevard County Hospital District v. C.R. Bard, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North Brevard County Hospital District v. C.R. Bard, Inc., (D. Utah 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH

NORTH BREVARD COUNTY HOSPITAL DISTRICT D/B/A PARRISH MEDICAL CENTER, MEMORANDUM DECISION AND ORDER DENYING CLASS Plaintiff, CERTIFICATION

v. Case No. 2:22-cv-00144-RJS-JCB

C.R. BARD, INC. and BARD ACCESS Chief District Judge Robert J. Shelby SYSTEMS, INC., Magistrate Judge Jared C. Bennett Defendants.

Plaintiff North Brevard County Hospital District d/b/a Parrish Medical Center (Parrish) filed a Renewed Motion for Class Certification,1 seeking to represent a class of purchasers of select medical products sold by Defendants C.R. Bard, Inc. and Bard Access Systems, Inc. (Bard). Parrish alleges Bard unlawfully monopolized the market for peripherally inserted central catheters (PICCs) by tying the sale of its tip-location system (TLS) to its sale of PICCs, in violation of §2 of the Sherman Act.2 Separately, Bard filed a Motion to Exclude the Report and Testimony of Eugenio Miravete, Parrish’s expert for class certification.3

1 Dkt. 141, Renewed Motion for Class Certification and Memorandum in Support [SEALED] (Motion); Dkt. 139, Redacted Motion. 2 Id. at 1. 3 Dkt. 157, Defendants’ Motion to Exclude the Report and Testimony of Eugenio Miravete [SEALED] (Motion to Exclude); Dkt 156, Redacted Motion to Exclude. For the reasons stated below, Plaintiff’s Motion for Class Certification4 is DENIED and the court defers judgment on Defendants’ Motion to Exclude.5

Background6 Bard is a medical device manufacturer producing a range of products, including PICCs, which it sells to hospitals and medical service providers.7 PICCs are thin, soft catheters placed in a patient’s arm and passed through the body to a vein near the patient’s heart.8 Once in place, a PICC is used to administer fluids, medications, and nutrients; to sample blood; and to power- inject contrast media.9 Serious health risks may arise if a PICC is improperly placed in a patient’s body.10 Traditionally, clinicians used chest x-rays or fluoroscopy to confirm proper placement of a PICC.11 However, these methods have been supplanted by the use of a TLS

which allows more precise navigation of the PICC through the body and confirmation of its proper placement.12 Use of a TLS offers a less expensive, less-time consuming, more accurate alternative to the traditional methods of PICC placement and has become the standard of care in the industry.13

4 Motion. 5 Motion to Exclude. 6 Because this matter is before the court on a motion to certify a class, the court accepts as true all well-pleaded factual allegations contained in the Complaint. See Tripp v. Berman & Rabin, P.A., 310 F.R.D. 499, 503 (D. Kan. 2015) (accepting “the substantive allegations of the complaint as true” for a motion to certify a class) (internal quotation marks and citations omitted). For purposes of this background, the court is drawing from factual allegations in Parrish’s Complaint and its Renewed Motion for Class Certification. 7 Dkt. 1, Complaint ¶ 1. 8 Motion at 2. 9 Id. at 2–3. 10 Id. at 3. 11 Id. 12 Id. 13 Id. Bard’s TLSs lead the market and have revolutionized PICC placement.14 Its flagship TLS, the Sherlock 3CG, facilitates PICC-placement through a combination of ultra-sound, magnetic-tracking, and electrocardiogram technology.15 Owing to its innovative technology and the regulatory hurdles complicating entry into the market, Bard commands over 70% share in the TLS market.16

A stylet is required to operate a TLS while placing a PICC.17 This, Parrish alleges, is where the problem arises. Only Bard-produced PICCs come with the proprietary stylet necessary to operate Bard’s industry-leading TLS.18 If a PICC purchaser wishes to use Bard’s TLS, the only economically viable option is to purchase a Bard PICC pre-loaded with the necessary stylet.19 Because of its commanding position in the TLS market, this combination has allowed Bard to also capture over 70% of the market for the sale of PICCs.20 If a purchaser wanted to use a Bard TLS but preferred a competitor’s PICC, it would have to purchase two PICCs—the Bard PICC with the required stylet and the desired competitor’s—when only one is needed.21

Bard’s alleged tying of its PICCs and TLSs forms the crux of Parrish’s Sherman Act § 2 claim.22 Bard sells the majority of TLSs on the market and PICCs used with a TLS constitute the

14 Id. 15 Id. 16 Id. 17 Id. 18 Id. 19 Id. at 4. 20 Id. 21 Id. 22 Id. at 1. largest segment of the PICC market.23 By tying the sale of its TLSs to the sale of its PICCs, Parrish alleges, Bard has unlawfully monopolized the entire PICC market, resulting in proposed class members paying PICC prices that are 9.7% to 34.5% above what Parish estimates to be competitive pricing.24 Bard can charge these supracompetitive prices because, under Parrish’s theory, the alleged tie has suppressed competition in the PICC market, preventing Bard’s

competitors from accumulating sufficient market share to bid Bard’s monopoly pricing down to competitive levels.25 According to Parrish, Bard’s anticompetitive conduct adversely impacts all PICC purchasers, whether they purchase PICCs with a TLS or—like Parrish—purchase only standalone PICCs.26 And, this impact is felt by all notwithstanding the fact that purchase price is not standardized, but a function of negotiations between Bard and the purchasers.27 Procedural History Parrish filed this lawsuit on March 31, 2020, in the United States District Court for the Northern District of New York.28 Suing under §§ 4 and 16 of the Clayton Act,29 Parrish brought two claims against Bard: 1) Bard’s tying of its TLSs with its PICCs violated § 1 of the Sherman Act,30 and 2) Bard’s monopolization of the PICC market violated § 2 of the Sherman Act.31

23 Id. at 5. 24 Id. at 5. 25 Id. 26 Id. 27 See Dkt. 168, Reply Memorandum in Support of Renewed Motion for Class Certification (Reply) at 6. 28 Dkt. 1, Complaint. 29 Id. at ¶ 11. 30 Id. at ¶¶ 85–100. 31 Id. at ¶¶ 101–05. Parrish sought to bring its claims on behalf of a class of direct purchasers—including hospitals, hospital systems, and clinics—of PICCs sold by Bard on or after March 31, 2014.32 On June 5, 2020, Bard filed a Motion to Transfer Venue requesting the New York court transfer the action to the District of Utah, where its PICC business is headquartered.33 On March 24, 2021, the District Court for the Northern District of New York denied the Motion with leave

to renew to address whether the District of Utah could exercise personal jurisdiction over C.R. Bard.34 Bard addressed this question in its Renewed Motion to Transfer Venue filed on April 19, 2021.35 While the Motion to Transfer was pending, Bard filed a Motion for Judgment on the Pleadings36 and Parrish filed a Motion for Class Certification.37 On February 15, 2022, the Northern District of New York granted Bard’s transfer request and transferred the case to the District of Utah, reserving the outstanding motions for this court to decide.38 On November 22, 2022, after hearing oral argument, this court granted in part and denied in part Bard’s Motion for Judgment on the Pleadings.39 The court granted Bard’s Motion concerning Parrish’s claim for violation of § 1 of the Sherman Act, finding Parrish lacked antitrust standing to assert it.40 Concerning Parrish’s second claim—unlawful monopoly

32 Id. at ¶ 80. 33 Dkt. 25-1, Memorandum of Law in Support of C.R. Bard, Inc’s and Bard Access Systems, Inc.’s Motion to Transfer Venue at 1–2. 34 Dkt. 28, Decision and Order. 35 Dkt. 34, Renewed Motion to Transfer Venue. 36 Dkt. 47, Motion for Judgment on the Pleadings. 37 Dkt. 85, Motion to Certify Class. 38 Dkt. 92. 39 Dkt. 136, Minute Order. 40 Id.

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