Ouellette v. Mills

22 F. Supp. 3d 36, 2014 U.S. Dist. LEXIS 66880, 2014 WL 1975438
CourtDistrict Court, D. Maine
DecidedMay 15, 2014
DocketCivil No. 1:13-CV-00347-NT
StatusPublished
Cited by1 cases

This text of 22 F. Supp. 3d 36 (Ouellette v. Mills) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ouellette v. Mills, 22 F. Supp. 3d 36, 2014 U.S. Dist. LEXIS 66880, 2014 WL 1975438 (D. Me. 2014).

Opinion

[39]*39ORDER ON MOTION TO DISMISS

NANCY TORRESEN, District Judge.

In this case, the Plaintiffs challenge the validity of certain 2013 amendments to the Maine Pharmacy Act (the “MPA”), 32 M.R.S. §§ 13701-13810. Before the Court is a motion brought by Defendants Janet Mills and H. Sawin Millett, Jr. (together, the “State”) to dismiss the complaint (ECF No. 17) pursuant to Federal Rule of Civil Procedure 12(b)(1) on the basis that the Plaintiffs lack standing to assert their claims. The State also requests dismissal of the claims against H. Sawin Millett, Jr. pursuant to Federal Rule of Civil Procedure 12(b)(6) for failure to state claims for which relief can be granted. For the reasons that follow, the motion is GRANTED IN PART and DENIED IN PART.

BACKGROUND

The MPA generally requires persons who “engage in the practice of pharmacy” to be licensed. 32 M.R.S. § 13731(1). On June 27, 2013, Maine’s legislature approved, without the Governor’s signature, “An Act To Facilitate the Personal Importation of Prescription Drugs from International Mail Order Prescription Pharmacies.” 2013 Me. Legis. Serv. Ch. 373 (S.P.60) (L.D.171) (West) (effective October 9, 2013) (the “2013 Act”). The 2013 Act amended the MPA by adding the following provisions:

B. A licensed retail pharmacy that is located in Canada, the United Kingdom of Great Britain and Northern Ireland, the Commonwealth of Australia or New Zealand that meets its country’s statutory and regulatory requirements may export prescription drugs by mail or carrier to a resident of this State for that resident’s personal use. A licensed retail pharmacy described in this paragraph is exempt from licensure under this Act; and
C. An entity that contracts to provide or facilitate the exportation of prescription drugs from a licensed retail pharmacy described in paragraph B may provide or facilitate the provision of prescription drugs from that pharmacy by mail or carrier to a resident of this State for that resident’s personal use. An entity that provides or facilitates the provision of prescription drugs pursuant to this paragraph is exempt from licensure under this Act.

Id. (codified at 32 M.R.S. § 13731(1)(B), (C)). The 2013 Act also included a new provision, “Consumer Choice Preserved,” which states:

Nothing in this chapter may be construed to prohibit:

1. Ordering or receiving prescription drugs. An individual who is a resident of the State from ordering or receiving prescription drugs for that individual’s personal use from outside the United States by mail or carrier from a licensed retail pharmacy described in section 13731, subsection 1, paragraph B or an entity described in section 13731, subsection 1, paragraph C; or
2. Dispensing or providing prescription drugs. A licensed retail pharmacy described in section 13731, subsection 1, paragraph B or an entity described in section 13731, subsection 1, paragraph C from dispensing, providing or facilitating the provision of prescription drugs from outside the United States by mail or carrier to a resident of the State for that resident’s personal use.

Id. (codified at 32 M.R.S. § 13799).

By complaint dated September 10, 2013, (the “Complaint”) the Plaintiffs — two [40]*40Maine pharmacists, trade organizations1 representing the interests of Maine pharmacists (the “Trade Associations”), and the Pharmaceutical Research and Manufacturers of America (“PhRMA”)— brought suit against the State, requesting a declaration that the 2013 Act is preempted by the federal Food, Drug, and Cosmetics Act (the “FDCA”), 21 U.S.C. §§ 801-399f, and the Constitution’s Foreign Commerce Clause, U.S. Const, art. I, § 8 cl. 3, and requesting an injunction prohibiting the State and'its officials from implementing the 2013 Act.

The Complaint alleges that in 2012, the State of Maine adopted the “MaineMeds” program, which allowed insured state employees to purchase prescription medications from foreign pharmacies through CanaRx, a Canadian mail-order pharmacy. Compl. ¶ 42. The Maine Board of Pharmacy contacted the Maine Attorney General’s office for an opinion regarding the legality of the MaineMeds program, and the AG’s office advised that CanaRx’s participation in the program constituted the unlicensed practice of pharmacy, and that state law prohibited the Board from licensing any foreign pharmacy. Compl. ¶ 43. CanaRx thereafter terminated the Main-eMeds program as well as the “Port-landMeds” program operated by the City of Portland, and the “HardwoodMeds” program operated by Hardwood Products Company, a Maine employer. Compl.. ¶ 44.

Following this, Maine enacted the 2013 Act. The Complaint alleges that the sponsors of the 2013 Act justified the new law “on a cost-savings rationale,” — i.e., that prescription drugs from foreign pharmacies cost less than their domestic counterparts — and that the law “will cause a transfer of market share” away from Maine pharmacies and to foreign mail-order pharmacies. Compl. ¶ 64. The Complaint alleges that Millett, Maine’s Commissioner of the Department of .Administrative and Financial Services, “oversees the provision of health insurance benefits to state employees and their families” and, thus, “will be responsible for implementing any state-run program to import pharmaceuticals.... ” Compl. ¶ 13.

In this motion to dismiss, the State contends that the Plaintiffs lack both constitutional and prudential standing to challenge the 2013 Act, and that in any event all claims against Millett should be dismissed for failure to state claims for which relief may be granted.

LEGAL STANDARD

On a motion to dismiss for lack of standing, the Court accepts as true all material allegations in the complaint and construes them in the plaintiffs favor. See Blum v. Holder, 744 F.3d 790, 795 (1st Cir.2014); Katz v. Pershing, LLC, 672 F.3d 64, 70 (1st Cir.2012). The plaintiff bears the burden of alleging facts “ ‘demonstrating that he is a proper party to invoke’ federal jurisdiction.” Dubois v. U.S. Dep't of Agric., 102 F.3d 1273, 1281 (1st Cir.1996) (quoting Warth v. Seldin, 422 U.S. 490, 518, 95 S.Ct. 2197, 45 L.Ed.2d 343 (1975)). “The standing inquiry is claim-specific: a plaintiff must have standing to bring each and every claim that she asserts.” Katz, 672 F.3d at 71.

DISCUSSION

The Plaintiffs assert that the 2013 Act impermissibly intrudes on both: (1) the [41]*41federal government’s plenary power to “regulate Commerce with foreign Nations,” U.S. Const, art. I, § 8 cl. 8 (the “Foreign Commerce Clause”); and (2) the FDCA’s prohibition against importation of foreign pharmaceuticals, which, as a federal statute, is “the supreme Law of the Land.... ” U.S. Const, art. VI, cl. 2 (the “Supremacy Clause”).

Every plaintiff must establish that she has standing to bring her claims. Katz, 672 F.3d at 71. Article III of the United States Constitution limits the federal courts’ adjudicative power to “Cases” and “Controversies.” Blum, 744 F.3d at 795.

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22 F. Supp. 3d 36, 2014 U.S. Dist. LEXIS 66880, 2014 WL 1975438, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ouellette-v-mills-med-2014.