Schecher v. Purdue Pharma L.P.

317 F. Supp. 2d 1253, 2004 U.S. Dist. LEXIS 8571, 2004 WL 1078129
CourtDistrict Court, D. Kansas
DecidedMay 6, 2004
Docket04-4015-JAR
StatusPublished
Cited by8 cases

This text of 317 F. Supp. 2d 1253 (Schecher v. Purdue Pharma L.P.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schecher v. Purdue Pharma L.P., 317 F. Supp. 2d 1253, 2004 U.S. Dist. LEXIS 8571, 2004 WL 1078129 (D. Kan. 2004).

Opinion

*1255 MEMORANDUM AND ORDER

ROBINSON, District Judge.

This matter comes before the Court on defendants’ Motion to Transfer (Doc. 11), plaintiffs Motion to Remand (Doc. 16) and defendants’ Motion to Stay (Doc. 41). Defendants Purdue Pharma, L.P., Purdue Pharma Company, Purdue Frederick Co., 1 and P.F. Laboratories, Inc. seek transfer of this case to the Southern District of New York. Plaintiff Bob Schecher opposes transfer and has filed a Motion to Remand the case to state court for lack of subject matter jurisdiction. Additionally, defendants have filed a Motion to Stay plaintiffs remand motion, pending resolution of the motion to transfer. For the reasons stated below, defendants’ motion to transfer is granted, plaintiffs motion to remand is denied, and defendants’ motion to stay is denied.

I. Background

This antitrust litigation was originally filed by plaintiff in the District Court of Shawnee County, Kansas, on January 13, 2004, as a class action on behalf of all persons or entities in the United States who purchased OxyContin® other than for re-sale or distribution from 1995 to the present. Plaintiff also sought to represent a subclass of individuals within Kansas who purchased OxyContin®. In his Complaint, plaintiff asserts violations of the Kansas Restraint of Trade Act, K.S.A. §§ 50-101, 50-112 and 50-117. Plaintiff alleges that Defendants “fraudulently obtained” its patents and relied on those fraudulently obtained patents “to thwart generic competition for OxyContin®” and that, as a result, plaintiff Bob Schecher and the other members of the class paid more for OxyContin® than they would have paid if generic competitors had been allowed to enter the market.

This action follows on the heels of a separate, but related patent action 2 in the United States District Court for the Southern District of New York that defendants brought against Endo Pharmaceuticals (Endo). Following an eleven-day bench trial, Judge Stein issued a memorandum opinion holding that Endo’s products infringed upon defendants’ OxyContin® Tablets, but that the patents were unenforceable due to defendants’ inequitable conduct before the U.S. Patent and Trademark Office (PTO). 3 Further, in its answer to the patent action, Endo asserted antitrust counterclaims and alleged, among other things that defendants had monopolized the market. Fact discovery on the antitrust counterclaims is complete and expert reports have been exchanged, but the counterclaims have yet to be substantively resolved.

Plaintiffs case is not the only related case which followed the New York decision. On April 22, 2004, the Judicial Panel on Multidistrict Litigation entered a Transfer Order which consolidated two actions filed in the District of Connecticut with similar actions pending in the Southern District of New York. The Order states that in addition to the consolidated actions, forty-one related actions have been filed. 4 Twenty-three of these actions are pending in the Southern District of New York and eighteen actions are pending in other districts, including “one action ... in the ... District of Kansas.” *1256 Though the Transfer Order does not identify the “one action” pending in the District of Kansas by docket number, the Panel’s reference was surely to this case, because this case was the only Kansas case included in a list of eighteen related matters pending in judicial districts, which the Panel notified the Court of in mid-March. The Order indicated that “these and any other related actions will be treated as potential tag along actions.” To the Court’s knowledge, the Panel has yet to issue a transfer order in this case.

II. Discussion

Defendants contend that the Court should transfer this case to the Southern District of New York and stay plaintiffs motion to remand to allow Judge Stein to resolve the remand issues in all the removed cases simultaneously. Conversely, plaintiff asserts that the threshold jurisdictional issue raised by the remand motion should be addressed before the motion to transfer venue, and that the motion to stay is without merit.

The venue statute, 28 U.S.C. § 1404(a), does not vest courts with unlimited power to transfer a civil action to any federal district; rather, § 1404(a) limits transfer of a civil action to “any other district or division where it might have been brought” 5 A district or division is one where the action “might have been brought” if, among other things, when the action began the proposed transferee district court would have had subject matter jurisdiction over the action. 6 Because a court may only transfer a case to a venue where the case could have been brought originally, this Court must necessarily address plaintiffs contention that subject matter jurisdiction is lacking before reaching the motion to transfer.

A. Motion to Stay

Although defendants suggest that it would more efficient to stay plaintiffs pending remand motion to allow Judge Stein to rule on the remand issues at once, the Court disagrees. Judge Vratil recently addressed this precise issue and determined:

While staying the proceedings might allow a single district court to rule on the jurisdictional issue in the various cases, a stay would not affect the law that applies to the present case and little would be gained by a stay of decision on the motion to remand. The parties would still be subject to Kansas law. No great judicial economy will be realized from a delay. The parties will not save time, for they have already briefed the remand issue. The Court is well versed in both Kansas and federal law, while the transferor court would need to apply the law of different states to different claims. For purposes of judicial economy, the jurisdictional issue should be resolved immediately. If federal jurisdiction does not exist, the case can be remanded before federal resources are further expended. In the Court’s view, judicial economy dictates a present ruling on the remand issue. 7

*1257 The Court agrees that there is no benefit to be gained from staying the remand motion.

B. Motion to Remand

Plaintiff alleges that defendants illegally removed this action and that remand is proper because this court lacks subject matter jurisdiction. A civil action is removable only if plaintiffs could have originally brought the action in federal court. 8 The Court is required to remand “[i]f at any time before final judgment it appears that the district court lacks subject matter jurisdiction.” 9

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Bluebook (online)
317 F. Supp. 2d 1253, 2004 U.S. Dist. LEXIS 8571, 2004 WL 1078129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schecher-v-purdue-pharma-lp-ksd-2004.